Selling and operating by brand
As part of the new strategy, BuzzFeed Inc. will focus more on differentiating its brands rather than attempting to sell network deals that bundle the brands.
At BuzzFeed and HuffPost, commerce and programmatic revenues make up the majority of the business, with direct-sold packages making up a much smaller percentage, according to Peretti.
Unlike its peers, revenue at Tasty is largely fueled by creators, whereas First We Feast is an IP-driven business and monetized through sponsorship and licensing. Complex, meanwhile, is a largely direct-sold and experiential business.
The pivot will also see the technology resources of the company oriented more toward brands rather than operating as a centralized unit, underscoring the need for the division to fall under Probus’ expanded oversight.
“Across all our centralized teams, we will have more focus on brands, and prioritize more of the areas that make each brand unique,” Peretti said. “The brand-centric approach will be key to stabilizing our business and returning to growth.”
Reflecting the shift, the company announced a slew of new products geared to strengthen the commercial appeal of its brands. Probus, speaking at Adweek’s NexTech event in New York on Tuesday, debuted a new AI-assisted gift guide called Shoppy.
Complex will host its experiential flagship event ComplexCon this weekend, while HuffPost debuted a new podcast, I Know That’s Right, last week. The company is also preparing a substantial redesign of the BuzzFeed website—an initiative referred to internally as Mission Possible.
“We’ve seen again and again throughout our history as a company that when we align with the major industry trends, we grow and thrive,” Peretti said. “When there are major shifts in the industry, we need to change how we operate to align ourselves for the future.”
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