BuzzFeed Leaks Show $5.9 Million Spend for Traffic From Facebook, Other Sources
Website spent nearly $1 million per month for half of 2014 to buy traffic as revenues climbed
Jordan Chariton | August 12, 2015 @ 10:40 AM
Last Updated: August 12, 2015 @ 10:51 AM
BuzzFeed
BuzzFeed’s financials are no longer a secret after leaked documents spread on Wednesday.
Gawker obtained financials for the company showing very strong years from 2012 to 2014. BuzzFeed, which added more hard news reporters and ramped up its video production in that timeframe, tripled revenues from 2012-2013, its financials reveal. The company reached $46 million in revenue in the first half of last year.
In six months in 2014, the viral news and video site also made a large investment in Facebook, buying $5.9 million worth of traffic from the social giant (and some other websites). That’s $1 million per month for predominately paid Facebook traffic, a significant investment.
Another takeaway from the document is a mystery publisher that paid BuzzFeed $3.5 million to produce original videos, according to the site’s 2011/2012 financial statement.
On March 7, 2013, the Company entered into a Distribution Agreement with a publishing platform (“Publisher”) to provide certain audiovisual content to the Publisher. The agreement provides for a $3,500,000 guaranteed payment to the Company, in exchange for the Company providing original videos (the “Content”) for platform distribution. Under the Agreement, the Publisher retains 100% of advertising revenue sold by either the Company or the Publisher against the Content until it has fully recouped the payment amount, at which point advertising revenue is shared in an amount determined in the Agreement.
Gawker noted it’s not clear who the publisher is but BuzzFeed entered into a distribution deal with Google and CNN during that time period, producing videos under the “CNN BuzzFeed” brand.
Finally, the company’s revenue renaissance opened a lot more editorial desks: BuzzFeed doubled its editorial ranks over the last three years as revenue climbed.
The strong performance undoubtedly impacted NBCUniversal’s $250 million investment in the website in a deal announced last month that will distribute the legacy company’s content on BuzzFeed and vice versa.
BuzzFeed declined to comment to TheWrap for this story.
9 Overnight Internet Sensations: From 'Alex From Target' to 'Hot Mug Shot Guy' (Photos)
Alex Lee, a 16-year-old bag boy at a Dallas Target store, became known simply as "Alex From Target" after a customer snapped his picture and posted it on Twitter. Lee became an overnight Internet sensation and landed a one-on-one with Ellen DeGeneres.
Alex Minsky went viral after his modeling shots hit the web. An Afghanistan vet, Minksy lost a leg after his Humvee ran over a roadside bomb. Instead of hiding his prosthesis, Minsky flaunted it on camera. His pictures became so popular, the California native was invited to New York to sit down with the ladies of "The View."
Chris Crocker, the boy in front of bedsheets tearfully begging people to “Leave Britney (Spears) alone!" got his big break after his video garnered an astounding 4 million views in two days. The YouTube clip inspired dozens of parodies by big-name celebs. He signed a show deal with Logo TV and has since proudly made a transition into gay porn.
Antoine Dodson was interviewed by a local TV crew after an intruder attempted to rape his sister. The interview became an Internet sensation and even got its own auto-tuned song by The Gregory Brothers which sold thousands of copies on iTunes.
Jeremy Meeks became "The Hot Mug Shot Guy" after he was arrested on gun and gang-related charges and his mugshot was posted on the Stockton, California police department's website. Women swooned, and Meeks made the news and reportedly signed a modeling contract worth $30,000.
Sean Kory hit it big after his own mug shot hit the web. Kory was arrested in Santa Cruz, California in November for allegedly assaulting a man dressed up as a Fox News reporter at a Halloween parade.
Chris Kohrs, also known as "The Hot Cop of San Francisco," became a global obsession earlier this year after a stranger on the street snapped his photo. A Facebook page started by one of his fans garnered an eye-popping 50,000 followers in less than a week.
EJ Johnson, son of Los Angeles Lakers legend Magic Johnson, went viral after paparazzi caught him coming out of a West Hollywood restaurant clutching a Birkin bag while holding hands with a male friend. Johnson landed a lead role in E!'s "Rich Kids of Beverly Hills."
Tardar Sauce, better known as "Grumpy Cat," became a Tumblr sensation, soon landing the feline its own movie.
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Teen Alex Lee became a star after an off-the-cuff photo became a social media phenomenon. Here’s TheWrap’s list of people who rode the wave of viral popularity.
Alex Lee, a 16-year-old bag boy at a Dallas Target store, became known simply as "Alex From Target" after a customer snapped his picture and posted it on Twitter. Lee became an overnight Internet sensation and landed a one-on-one with Ellen DeGeneres.