Disney is attempting a feat of magic that might vex even talented sorcerers like its own Maleficient or Dr. After clashing with advertisers earlier this year when the company pressed for $10 million for a single 30-second Super Bowl commercial, Disney is trying again — even though it declared in July that all commercial inventory in the Big Game was sold out. Has Disney won permission from the NFL to expand the number of commercials in the gridiron classic?
The entertainment giant is trying to line up a group of marketers that might pick up Super Bowl inventory in case a current sponsor does what is known in the ad business as “seeking relief,” or asking if it can be freed from its ad commitments tied to the extravaganza. In this case, according to two different media buyers familiar with current talks between Disney and advertisers, the company is seeking between $10 million and $12 million per 30-second spot, as well as what is known as a “match” of another tranche of money for other parts of Disney ad inventory. How can a company negotiate for commercials that aren’t up for sale?
Disney is looking to the near future. The company’s hope is that it can take inventory that any current advertiser gives back and re-sell it for a higher price. Such haggling is common each year, particularly if an advertiser feels the creative concept they’ve chosen is not worthy of the Super Bowl or if a business is facing economic pressures.
Indeed, State Farm asked Fox to let it out of a deal for commercials in Super Bowl LIX, citing obstacles created for its business by disastrous California wildfires. Such requests typically don’t start in earnest until closer to the end of the fourth quarter, which is why most TV networks don’t like to declare sell-out until just days before the Super Bowl starts. At present, “I’ve heard there isn’t really anyone asking,” says one of the buyers.
Clearly, they’re not getting that demand.” Disney is working to develop “a list of advertisers trying to get in should someone back out,” says a second executive. One person familiar with recent talks says Disney is seeing robust interest in potential deals. Disney declined to make executives available for comment.
The Super Bowl has in recent years become even more of a Madison Avenue treasure. In the streaming era, finding large swaths of audience watching at the same time is more difficult than ever. Indeed, Disney’s ability to sell out the Big Game in July despite navigating backlash marked one of the earliest moments of completion in the overall Super Bowl sales cycle.
Extract — continue reading at the source.
