The news: Disney is asking brands to pay $10 million for 30-second Super Bowl LXI commercials, per Variety—and advertisers are already pushing back.
- Advertisers who spoke with Variety said that Disney has yet to make notable progress in its Super Bowl sales effort compared with previous broadcasters like NBC and Fox.
- Individuals familiar with the negotiations also said that advertisers may consider spending money reserved for the Super Bowl on other properties if Disney does not provide a better offer.
- Advertisers noted that although some Super Bowl LX ads sold for more than $10 million last year, those higher prices came late in the sales cycle when inventory was nearly sold out and competition had intensified. Initial prices started at around $7 million.
- Another challenge is that Disney does not have a dedicated Super Bowl sales expert experienced in managing ad sales for the game.
Zooming out: Disney is betting that advertisers will pay to appear in the biggest sporting event out there, regardless of the price tag. Advertisers do have some incentive to pay up:
- The Super Bowl consistently delivers massive reach, drawing more than 125 million viewers this year, according to Nielsen, and regularly attracting audiences of over 100 million.
- Super Bowl ads go beyond the average commercial and are seen as a cultural event by many viewers; 51% of US adults express excitement about these ads, per Kantar.
- Running a Super Bowl ad signals that a brand is a major player and reputable voice in its industry, reinforcing brand equity and trust. The event’s scale and prestige give advertisers an unparalleled opportunity to assert their presence to consumers.
But advertisers are increasingly being priced out of the main event as costs have consistently increased over the last several years.