Mickey Mouse, the iconic Disney character, continues to hold sway over Madison Avenue as Walt Disney Co. recently announced a successful outcome in the 2024 upfront ad sales market. The company reported a 5% increase in ad commitments, showcasing the enduring appeal of Disney’s properties to advertisers. While specific dollar amounts were not disclosed for 2024 or 2023, the increase in ad deals is a positive sign for Disney in a challenging media landscape.
In a year where U.S. media companies are facing various pressures, including declining linear TV audiences and increased competition from streaming services, Disney’s ability to secure higher ad commitments is noteworthy. The company’s success can be attributed to its focus on advertising innovation and commitment to world-class storytelling, as highlighted by Rita Ferro, president of global advertising for Disney.
One of the strategies that Disney employed this year was offering to „rollback“ Disney+ rates in the cost of reaching 1,000 viewers, a key metric in negotiations between TV networks and advertisers. By reducing CPMs for Disney+ by as much as 10% to 15% in some cases, Disney was able to secure deals that required a certain level of ad support across its portfolio. This move reflects Disney’s willingness to adapt to the changing advertising landscape and meet the needs of advertisers.
Advertisers showed a strong interest in sports offerings and streaming video, with multi-year sports deals seeing a double-digit percentage increase in volume. Ad commitments to women’s sports also saw a significant uptick compared to the previous year’s upfront. Streaming ad commitments across Hulu and Disney+ rose by 10%, driven by a new offering that allowed marketers to buy across Disney’s broader portfolio of apps.
In addition to sports and streaming, ad commitments targeting multicultural audiences saw a 15% increase, with media buyers intentionally focusing on diverse audiences. Disney noted robust interest from marketers in various sectors, including foreign autos, beverages, foods, personal care, financial services, hotels and vacation rentals, and quick-service restaurants. This diverse range of advertisers demonstrates the broad appeal of Disney’s platforms and content to a wide array of brands.
Overall, Disney’s success in the 2024 upfront ad sales market highlights the company’s ability to adapt to changing trends and meet the evolving needs of advertisers. By focusing on innovation, storytelling, and diverse audience targeting, Disney continues to be a powerhouse in the advertising industry, with Mickey Mouse still holding significant pull on Madison Avenue.