The expansion of the College Football Playoff has led to increased advertising and viewership at Disney.

• The expanded College Football Playoff is benefiting Disney's TV networks and streaming platform, particularly in terms of advertising.
• According to EDO, data suggests that ad performance will increase during the upcoming college football games over Thanksgiving weekend.
• The 12-team College Football Playoff format has resulted in a surge in viewership, making the current season the most-watched since 2016 on Disney's networks.

The revised College Football Playoff format has significantly impacted the media industry, particularly for ESPN.

The 12-team College Football Playoff format has resulted in more teams and fans having a stake in the game, leading to increased viewership for Disney's TV networks that air college football, including ABC, ESPN and ESPN2, since 2016.

According to EDO, an advertising data company, the commercials aired during the games have resulted in increased viewership engagement. This trend is expected to continue during the busy Thanksgiving weekend, which features numerous rivalries and will impact playoff seeding and the upcoming Bowl games.

In the 14th and final weekend of the season, Ohio State and Michigan, as well as Texas and Texas A&M, will face off on the field.

"According to Kevin Krim, CEO of EDO, we have greater expectations for this weekend's ad engagement on Disney's networks due to the change in format. The importance of these games, based on our experience and data, cannot be overstated."

The College Football Playoff has been expanded from four to 12 teams, as voted by the university presidents in 2022. This change has not only provided Disney with more games on its schedule, but also increased the excitement around the games earlier in the season.

"Our portfolio includes college football as a significant component, not just for sports but also for our Disney platform. We have achieved tremendous success in both advertising sales and content, as stated by Jim Minnich, senior vice president of Disney advertising revenue and yield management, who highlighted "record-breaking viewership across our platforms.""

This season, ABC is projected to have its highest college football ratings since 2009, with 12 out of the 15 most-viewed games being broadcast on the network.

According to EDO, consumers were 11% more likely to engage with ads during college football games on Disney networks through week 10 compared to the competitive broadcast and cable prime-time average. This means that people were more likely to search for products and offerings they saw on the commercial breaks, making those slots more valuable to advertisers.

Disney's networks are expected to experience a surge in ad performance during the Thanksgiving weekend games in 2023, according to EDO estimates. The firm reported that Disney's ads were 93% more effective last year compared to other networks' programming in the same time slot, resulting in a 39% year-over-year increase.

According to EDO, brands such as Jimmy Dean, Just for Men, Popeyes, and AbbVie's Skyrizi experience strong consumer engagement during college football games on Disney's channels.

The media industry is facing significant turmoil as consumers increasingly abandon pay-TV bundles and shift their focus to streaming platforms. Media companies are now placing more resources into advertising as they adapt to the changing landscape.

Minnich stated that Disney has experienced "significant demand on renewals" from its College Football Playoff partners, with some seeking to renew early for the 2027 season and beyond.

Earlier than ever, there's a renewed interest in college football, according to Minnich. He attributed this to the College Football Playoff and the broader sports landscape.

Disney has sold out of advertising spots during the conference championship games and has sold approximately 90% to 95% of ads for the College Football Playoff games.

""We have sold more in the championship game than we have in years past, and we are ahead of pace compared to last year, including the projected growth for CFP," Minnich stated."

Despite the decline in TV viewership, sports remain a reliable source of revenue for networks. The NFL and college football are consistently among the most popular and lucrative sports, with advertisers continuing to invest in this sector.

According to Krim, TV football is the most expensive thing 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 highest value, but college football is right behind it.

In response, media rights for sports have ballooned across the board.

The Southeastern Conference's football games being broadcasted on Disney has increased advertising demand, with the media company reportedly paying $300 million annually for SEC rights over the next decade.

In March, ESPN and the College Football Playoff reached a six-year, $7.8 billion contract for the 2021-32 season. Following that, ESPN signed a five-year sublicensing agreement to broadcast first-round and quarterfinal College Football Playoff games.

Disney's competitors, including CBS Sports, ESPN, and NBC Sports, also play a significant role in college football.

Across all networks that show college football games, Krim believes that the sport is more effective than average programming.

Disclosure: Comcast's NBCUniversal is the parent company of CNBC.