BuzzFeed is a media company established by Jonah Peretti and John Johnson in 2006. While focusing on creation of viral content by a team of creative editors and reporters and being supported by native advertising, the media resource has achieved success (Oberholzer-Gee 1). However, in the modern world, its future development involves increasing challenges. Today, though BuzzFeed does not release detailed financial information, its financial performance is likely to be successful.
The company claimed to be profitable in 2013 and 2014. In 2013, its traffic tripled. In 2014, its sales doubled (as expected) from $60 million in 2013. Its revenues from native advertising are likely to be significant. In 2013, it ran about 50 companies at an average price of $100,000 a month each (Oberholzer-Gee 1, 6-7). Thus, advertising and traffic and sales growth must have ensured financial stability and profits to the company. BuzzFeed has a strong internal culture focusing on talent, creativity, and openness to change. The company has involved many talents from media and technology industries, as well as independent talents creating their own viral posts. These talents should have similar scope and vision. Herewith, BuzzFeed accepts different approaches to content creation. It focuses on social conversations on the web enabling it to regard current issues. In addition, it aims at using novel ways of news presentation. Moreover, the company pays special attention to customers’ reaction while enabling them to classify stories as LOL, OMG, WTF, FAIL, and TRASHY (Oberholzer-Gee 3-5, 9-11).
This openness and innovativeness also reflects BuzzFeed’s strategic focus. Organizationally, BuzzFeed benefits from its operational model involving multiple focuses and native advertising (Oberholzer-Gee 6). It operates in various areas including business, politics, entertainment, videos, and quizzes. Each section page consists of numerous thumbnails and headlines describing the content. Its posts are rich in visuals. Its team of 200 talented reporters and editors composes news stories and lists. In addition, BuzzFeed involves a network of more than 200 sites reaching 355 million users. The network allows monitoring information traffic (Oberholzer-Gee 1, 3). Native advertising is similar in look and feel to editorial content and reads as “promoted by…” and “brand publishers” (Oberholzer-Gee 1, 12). Due to its brand, technology, and reach BuzzFeed is already ten times as competitive as its competitors (Oberholzer-Gee 8). Its strife for continuous innovativeness and change assumes that the company will develop and grow. In particular, the company is likely to expand globally and innovate to meet technological and readers’ requirements. For example, Pretti and Smith want to create a team of investigative reporters creating complete stories. In addition, they plan increased use of video resources in their news posts (Oberholzer-Gee 5, 11).
Nevertheless, BuzzFeed’s leadership will continue facing competition, creativity, and viral content challenges. By 2014, native advertising has become widespread among other publishers (Oberholzer-Gee 2). In addition, a challenge of customer deception and blurring lines between advertising and editorial content has arisen. Global expansion will continue creating the challenge of finding great foreign writers and reporters (Oberholzer-Gee 10-11). Moreover, technological …