Masters of Scale Rapid Response: How BuzzFeed bounced back, w/Jonah Peretti
Jul 8, 2021
Jonah Peretti, co-founder and CEO of BuzzFeed, shares insights on the company's agile response to pandemic challenges. He reveals how BuzzFeed engineered a remarkable turnaround to achieve record profitability, even amidst significant revenue drops. Peretti discusses the importance of balancing data-driven strategies with creativity to engage diverse audiences, particularly Millennials and Gen Z. He also highlights BuzzFeed's ambitions with recent acquisitions, such as HuffPost, and plans to go public, showcasing the future of digital media.
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BuzzFeed's Pandemic Pivot
- BuzzFeed faced significant revenue loss during the pandemic due to declining ad sales.
- They adapted by focusing on digital partnerships and e-commerce, achieving record profitability by the end of 2020.
Consolidation in Digital Media
- Digital media consolidation offers scale and leverage, but it's challenging due to private valuations and cash conservation.
- BuzzFeed's diversified revenue and profitability positioned them as a consolidator, enabling acquisitions like HuffPost.
Capturing Value in Media
- Media companies often don't capture the full value they create, as intermediaries like Google and Expedia profit from inspired transactions.
- Better attribution connecting inspiration to transactions could significantly increase media companies' value.