The expansion of the College Football Playoff (CFP) to a 12-team format has significantly impacted media companies, particularly Disney, during the current season. This marks the inaugural year of the revamped CFP, which has increased the number of teams participating, thereby engaging fans of a broader range of teams. Consequently, Disney's television networks, which broadcast college football, including ABC, ESPN, and ESPN2, are anticipating their highest viewership figures since 2016, as indicated by the company's data.

This surge in interest has led to increased viewer engagement with commercials aired during the games, as reported by EDO, an advertising data analytics firm. The trend is expected to persist through the Thanksgiving weekend, a crucial period in the college football calendar filled with rivalries that will influence playoff seeding and the subsequent Bowl games. The final weekend of the season will feature classic rivalries, such as Ohio State versus Michigan and Texas versus Texas A&M, which are anticipated to draw significant viewership.

"We anticipate higher hopes and expectations for the upcoming weekend due to the format change," remarked Kevin Krim, CEO of EDO, when discussing the anticipated increase in ad engagement on Disney's networks. "The importance of these games is reflected in our data."

In 2022, university presidents overseeing the CFP voted to expand the postseason system that determines the national champion from four to twelve teams. This change has not only added more games to Disney's schedule but also heightened the excitement surrounding the games earlier in the season.

"College football is a vital component of our portfolio, both in sports and across the broader Disney platform. From an advertising sales and content perspective, we've experienced tremendous success," stated Jim Minnich, Senior Vice President of Disney Advertising Revenue and Yield Management, highlighting "record-breaking viewership across the company's platforms."

ABC, in particular, is poised to achieve its best season for college football ratings since 2009. The company reported that 12 out of the 15 most-watched games this season were broadcast on the network. According to EDO, consumers were 11% more likely to engage with advertisements during college football games on Disney networks through week 10 compared to the competitive broadcast and cable prime-time average. This increased likelihood of searching for products and offerings seen during commercial breaks enhances the value of these ad slots for advertisers.

Amari Daniels of the Texas A&M Aggies, for instance, was seen running the ball while defended by Marvin Burks Jr. of the Missouri Tigers in the first quarter at Kyle Field on October 5, 2024, in College Station, Texas, as captured by Tim Warner for Getty Images.

EDO estimates that ad performance during the Thanksgiving weekend games on Disney's networks is expected to surge again this year, following a robust 2023. The firm reported that ads during Disney's games were 93% more effective last year than the programming in the same time slot on other networks, which also represented a 39% year-over-year increase.

Brands that have observed particularly strong consumer engagement during college football games on Disney's channels include consumer packaged goods brands like Jimmy Dean and Just for Men, restaurants such as Popeyes, and pharmaceutical products like AbbVie's Skyrizi, as noted by EDO.

These metrics are significant as the media industry navigates substantial changes. As consumers abandon the pay-TV bundle and media companies shift resources to streaming platforms, companies are increasingly reliant on advertising revenue.

Disney has already witnessed "significant demand on renewals" for its College Football Playoff partners, with some expressing interest in renewing early for 2027 and beyond, according to Minnich. "There's a renewed interest earlier than ever," Minnich said, attributing this to both the College Football Playoff and sports in general.

On the advertising front, Disney has sold out all its ad spots through the conference championship games and has sold approximately 90% to 95% of ads for the College Football Playoff games. "We're actually more well sold in the championship game than we have been in years past," Minnich said. "We're ahead of pace compared to last year, including the growth that was projected for CFP."

Live sports have remained a stronghold for consistent ratings for TV networks, with the National Football League often leading in viewership and advertising, followed closely by college football. Despite a softening advertising market, advertisers continue to invest in sports.

"Football is generally the most expensive offering on TV because it attracts larger audiences who are more engaged with both the program and the ad breaks than anything else on TV. The NFL is the absolute pinnacle of value, but college football is right behind it," Krim explained.

In response, media rights for sports have skyrocketed across the board. Disney's position as the home of all Southeastern Conference football games has also boosted advertising demand. The media company is reportedly paying around $300 million annually for SEC rights over the next decade.

ESPN and the College Football Playoff announced in March that they had agreed to a six-year $7.8 billion contract through the 2031-32 season. Shortly after, Warner Bros. Discovery signed a five-year sublicensing deal with ESPN to broadcast first-round and quarterfinal College Football Playoff games.

College football also plays a significant role for Disney's competitors, including Paramount's CBS Sports, Fox Corp., and Comcast's NBC Sports. Krim stated that college football is more effective than average programming across all networks that broadcast the games.