Let’s take the leaked $150m in yearly revenue. When BuzzFeed CEO Jonah Peretti brags about 5 billion monthly content views generated by BuzzFeed on social, each one then generates no more than $0.0025 in ad revenue, a meager $2.50 CPM equivalent; for video that’s weak.
Tremors In The Distributed Content World
Frederic Filloux
23015

“$2.50 CPM equivalent; for video that’s weak”

That would be correct if all their income (and content) came from video. Which is not the case.

“To put things in perspective The New York Times makes about $5 for the same UV, 125x more than BuzzFeed”

The problem here is that it’s not the same UV. You can’t compare UVs and global reach on platforms. NYT global reach is probably much higher than their UVs.

Not sure if it’s possible to draw conclusions on calculations that are meaningless.

The truth is we still don’t know if their shift of business model from native ads (on their own website) to distributed content will pay off . As an example, Facebook Video doesn’t generate revenue at all yet and it must be a good part of their video inventory.

And as Ben Thompson says in his last stratechery newsletter: “the company is still ahead of the curve. And if it’s not, well, then the industry is in even more trouble than even I think it is.”

Show your support

Clapping shows how much you appreciated Michael Philippe’s story.