Disney Targets ‘Mid-Market Advertisers’ With ‘Significant’ Ad-Price Cuts 

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Disney Targets ‘Mid-Market Advertisers’ With ‘Significant’ Ad-Price Cuts 

By Movieguide® Contributor

Disney is cutting costs for ad space in an effort to attract more advertisers. 

“In a bid to win overall commitments, Disney has been striking deals that call for significant ‘rollbacks’ in the rates it charges to reach 1,000 viewers — a measure known as a CPM — on its Disney+ streaming hub,” Variety reported

The outlet shared that Disney has cut costs for ad space on Disney+ by as much as 10-15% for advertisers who commit to “a certain level of volume of ad support across its portfolio.”

The company is targeting “mid-market advertisers” — companies that spend between $30 and $300 million on ads — with this new strategy. 

“It doesn’t mean our main, top 100 advertisers aren’t growing and spending money, but there’s a real significant opportunity for us there,” Disney’s president of global advertising Rita Ferro told ADWEEK. “We’re starting to see growth in that biddable channel—double-digit growth, quarter over quarter, and we want to enable the least amount of friction possible in order to continue to drive that growth.”

It looks like the plan is working; Marketing Brew reported that Disney has already sold out of ad space for the streams of the first two games of the NBA Finals. 

“The league in general had emerging stars across many, many markets,” Jim Minnich, SVP of revenue and yield management at Disney Advertising, shared. “We believe that for this year, this was the best possible match that we could have gotten. We believe the series will go long. All of those elements, I think, support the advertiser demand.”

Disney isn’t the only company driving down ad pricing. Movieguide® previously reported:

Amazon’s recent move to default ad-supported streaming has driven ad prices down, affecting other streamers. 

“Amazon defaulted its Prime Video members to its advertising plan in January 2024, helping it garner the largest number of subscription OTT [Over The Top, meaning content is streamed without cable or satellite] ad-supported viewers of all major US streaming providers,” EMarketer reported

This move could make Amazon as much as $4.72 billion in OTT ads — and it’s already affecting other streaming services’ finances. 

“Netflix is asking some brands to pay roughly $29 to $35 for reaching 1,000 viewers, according to advertisers and ad buyers, a significant decrease from the $39 to $45 that it charged some advertisers last summer,” Yahoo! Finance wrote

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