Dive Brief:
- A source close to BuzzFeed has revealed that the publishing startup expects to generate $120 million in revenue in 2014 — double the $60 million made in 2013.
- Rather than relying on banner and display adds, BuzzFeed creates branded articles for advertisers — one example being an article listing New York City winter attractions and highlighting the state's lottery scratch-off tickets.
- BuzzFeed has been able to attract big name advertisers like GE and Toyota with its sponsored content, and as of September, the startup expected to do a total of 600 to 700 branded articles for advertisers in 2013.
Dive Insight:
Love it or hate it, BuzzFeed has sort of become the shining example of how branded content can really work. There's no arguing that the site has figured out a way to be profitable and successful without running display ads — a feat few publications have achieved. It's not hard to believe the revenue will continue to increase in 2014, but time will tell if estimates are overshooting reality.
