~news to move the needle on media revenue diversification with a twist~
When Buzzfeed announced its intention to go public via a SPAC, the investor deck about the offering was a case study in the successful implementation of a media-revenue-diversification-led growth strategy. Buzzfeed has an enormous online audience, great brands that now include Complex and The Huffington Post, and a management team that has driven innovation in digital media for 15 years. But the deck makes it clear management believes the key value driver is the company’s proven ability to build multiple profitable revenue streams based on its brands and audience. Commerce revenue is forecast to grow from 11% of revenue in 2019 to 31% in 2024 representing a 55.1% CAGR…
“BuzzFeed’s Commerce revenue stream is enabled by a unique ability to deliver content to high value audiences. This revenue stream drove ~$500M in attributable transactions in 2020, up 62% YoY.”
Overall the deck makes a great read about the growth that digital media brands can achieve with the proper outlook. It touches upon all the revenue streams we cover here. Further, it positions the company as a major player in the media M&A market going forward.