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Business Operations Business Models

How Does BuzzFeed Make Money (Business and Revenue Model)

The BuzzFeed business model

BuzzFeed logo
Here’s what you should know:
  • What is BuzzFeed, and how does BuzzFeed work?
  • How does BuzzFeed make money?
  • Advertising
  • Content
  • Commerce
  • BuzzFeed subsidiaries, acquisitions, and exits
  • BuzzFeed profit and revenue
  • What is the BuzzFeed business and revenue model?
  • BuzzFeed funding, net worth, and market cap

How does BuzzFeed make money and how is it free to use? Well, here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the BuzzFeed business and revenue model, how much BuzzFeed makes per year, and how BuzzFeed works.

What is BuzzFeed, and how does BuzzFeed work?

BuzzFeed is a digital media company that publishes news and entertainment content.

Founded in 2006 by Jonah Peretti and John S. Johnson III, BuzzFeed began trading on the NASDAQ on December 6, 2021, under the ticker symbol “BZFD”.

Now, BuzzFeed attracts more than 100 million viewers per month making it one of the top websites on the internet by traffic.

So, how does BuzzFeed work? To keep up with BuzzFeed, users can either download their mobile app on the Apple App Store or Google Play store; or simply go to their website.

Once on their site, readers can browse and read from over tens of thousands of articles, news stories, and more. And if that isn’t enough, readers can subscribe to their email list where they can get more than the 200 pieces of new content they publish daily.

Some of BuzzFeed’s competitors include Medium, Barstool Sports, and other digital media companies.

BuzzFeed App in Apple App Store | BuzzFeed Business Model | How Does BuzzFeed Make Money | How Does BuzzFeed Work
Source: Apple App Store | BuzzFeed

How does BuzzFeed make money?

According to page 6 of BuzzFeed’s 2021 Form-10K, BuzzFeed attracts more than 100 million monthly viewers across all of its brands that consumed nearly 800 million hours of content in 2021.

So how does BuzzFeed make money off of all this website traffic?

Below is a breakdown of how much money BuzzFeed makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how BuzzFeed makes money in 2022

BuzzFeed has a revenue model that makes money in three (3) ways; ad revenue, content revenue, and commerce.

#1. Advertising

BuzzFeed makes a bulk of its money from advertising. In fact, $205.8 million, or 51.7% of BuzzFeed’s total revenue came from ad revenue in 2021.

As noted above, BuzzFeed attracts more than 100 million monthly users on its sites. And from those 100 million, BuzzFeed’s content gets more than 2.4 billion monthly views. Which results in more ad revenue for BuzzFeed.

Those 2.4 billion monthly content views span across all of BuzzFeed’s owned digital platforms; including brands like HuffPost, Complex Networks, and more. Which you can see more of by zooming in on the image below.

BuzzFeed brands | BuzzFeed Business Model | How Does BuzzFeed Make Money | How Does BuzzFeed Work
Source: BuzzFeed

Note: 51.7% of BuzzFeed’s total revenue came from ad revenue in 2021.

#2. Content

BuzzFeed also makes money from the sponsored content that they sell and license to brands. Which, in 2021, generated roughly $130.2 million or 32.7% of BuzzFeed’s total revenue.

So, how does BuzzFeed make money from sponsored content? Buzzfeed offers and makes money from premium content that brands pay for or license from BuzzFeed to create and place on their websites.

According to sources, like Forbes, they estimate “Buzzfeed [charges] approximately $92,300 per native ad campaign” based on the averages from their publicly released numbers.

#3. Commerce

Lastly, BuzzFeed makes the remaining portion of its money from what they call “commerce”, which generated $61.57 million for BuzzFeed in 2021.

According to page 8 of BuzzFeed’s 2021 Form-10Kcommerce includes “affiliate marketplace revenue, IP licensing and an experiential business.”

BuzzFeed subsidiaries, acquisitions, and exits

To date, BuzzFeed, Inc. has made a total of 7 acquisitions.

Mergers and acquisitions business model
Source: Crunchbase | BuzzFeed

BuzzFeed profit and revenue

In 2021, BuzzFeed reported $397.56 million in revenue.

Note: Because BuzzFeed, Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of BuzzFeed’s publicly released financial reports, including annual reports, through BuzzFeed’s investor section on their website.

What is the BuzzFeed business and revenue model?

BuzzFeed makes money through a few revenue models that they combine within their company, they are:

  • Advertising business model
  • Fee for service (FFS) business model
  • Affiliate revenue model
  • Licensing revenue model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

BuzzFeed funding, net worth, and market cap

According to BuzzFeed’s Crunchbase profile, BuzzFeed has raised $696.3 million over 10 rounds and has a market cap of $219.44 million as of July 2022.