It was just nine months ago when Facebook decided to change its algorithm to favor content shared and created by friends instead of publishers. The decision led to the downfall of a handful of content creators such as Little Things, which experienced a 75% drop in its organic traffic, essentially killing profit margins and forcing it to close its doors.
Since that time, content creators have been careful not to rely too heavily on social media platforms for their traffic. Many, including Refinery29 and Condé Nast, have developed apps as a means to drive consumers back into their owned and operated properties rather than having to rely on Facebook for revenue and traffic.
Also Read: NowThis Taps Former CNN Correspondent Dan Lieberman for Facebook Watch Series (Exclusive)
However, despite this trend, Group Nine, a company that consists of four digital brands — NowThis, Seeker, The Dodo, and Thrillist — has been able to build one of the most successful digital media brands despite not relying on driving consumers to its owned and operated (O&O) website.
CEO and founder of Group Nine Ben Lerer says that the company’s strategy is centered on being “100% consumer-centric in everything” they do.
“What that means for us is –unapologetically build content for where people live,” explained Lerer, speaking at TheWrap’s annual media and technology conference, TheGrill, held at the SLS Hotel in Beverly Hills.
“So instead of trying to create content with the goal of getting someone to come back to a website or an app… let’s acknowledge the fact that people live on a handful of digital platforms that — if we can lean really hard into and make the absolute best content for — we can build the next generation of great brands.”
Also Read: Discovery Communications Leads $40 Million Raise for Group Nine Media
With this strategy in mind, the company has focused on producing brand-safe content with mass appeal, such as news-focused programming through its NowThis Vertical, and animal-centric stories via its DoDo brand. This content tends to have high engagement, shares and views. NowThis, for example, has been able to generate an average of more than 2.5 billion monthly views.
With its family friendly content and massive audiences across its brands, the company has been successful at attracting enough ad-dollars to make money, says Lerer.
“Even without selling premium advertising against it, we can create content profitably… off of just what we call distributed revenue, which is just revenue generated off of these platforms,” said Lerer.
Now the next step for Group Nine, according to the CEO, is it work on getting sales rights, which it is currently in the process of doing.
Also Read: Facebook Adds More Choices for Video Ad Buyers on its Platform
“What that means is moving into a world where we can not only rely on platform revenue [but] we can sale a huge amount of totally brand safe, totally premium, scaled, transactional video inventory.”
The Scene at TheGrill 2018: Will Packer, Patrick Soon-Shiong and More at TheWrap's Media Leadership Conference (Photos)
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Photos by Randy Shropshire/Ted Soqui
TheWrap's 2018 TheGrill conference gathers up the biggest thought leaders in Hollywood, media and technology at SLS Hotel, a Luxury Collection Hotel, Beverly Hills.
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Photo by Ted Soqui
Producer Will Packer and TheWrap founder and CEO Sharon Waxman take a selfie at TheGrill 2018.
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Photo by Ted Soqui
Dr. Patrick Soon-Shiong, owner and executive chairman of The Los Angeles Times, talks in his spotlight conversation at TheGrill.
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Photo by Ted Soqui
Sharon Waxman speaks with Josh Sapan, president and CEO AMC Networks Inc. and David Nevins, president and CEO Showtime Networks Inc. as part of TheGrill's keynote interview.
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Photo by Ted Soqui
Jim Wiatt, ex-chairman of William Morris Agency, attends TheGrill 2018.
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Photo by Ted Soqui
Ted Farnsworth, chairman & CEO, Helios & Matheson Analytics, Inc., owner of MoviePass, poses for a photo ahead of his panel discussion at TheGrill 2018.
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Photo by Randy Shropshire
Sharon Waxman speaks with attendees and speakers at TheGrill 2018.
Also Read: Hollywood’s Merger Mania Will Leave a Host of Theater Chains and Entertainment Companies in the Dust
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Photo by Randy Shropshire
Audience members chat during a Power Break at TheGrill 2018.
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Photo by Ted Soqui
Sharon Waxman, CEO and founder of TheWrap, delivers opening remarks at TheGrill 2018 at SLS Hotel Beverly Hills.
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Photo by Randy Shropshire
Sharon Waxman and Jason Hirschhorn embrace at TheGrill's "The Future of Media" discussion.
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Photo by Ted Soqui
Jason Hischhorn, CEO and chief curator, REDEF Group, Inc., co-moderates the panel "Merger Mania - The Remaking of the Studio System."
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Photo by Ted Soqui
Sharon Waxman moderates the panel discussion "Merger Mania - The Remaking of the Studio System."
Also Read: Why Group Nine’s Content Strategy Doesn’t Involve Driving Viewers Back to Its Websites
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Photo by Ted Soqui
Schuyler M. Moore, partner at Greenberg Glusker, speaks during the panel discussion "Merger Mania."
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Photo by Ted Soqui
Roy Salter, senior advisor at FTI Consulting, speaks on the panel discussion "Merger Mania - The Remaking of the Studio System."
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Photo by Ted Soqui
Alissa Miller, partner at the law firm Akin Gump, shares thoughts on the remaking of the studio system.
Also Read: How an Embrace of Digital Media Helped Viacom Get Its Groove Back
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Photo by Ted Soqui
Roy Salter, senior adviser at FTI Consulting, talks on the panel discussion "Merger Mania - The Remaking of the Studio System."
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Photo by Randy Shropshire
TheWrap tech reporter Sean Burch leads a discussion on cryptocurrency at TheGrill 2018.
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Photo by Randy Shropshire
Syed S. Hussain, chief commercial officer at BANKEX and Lauren Selig, co-founder of Shake and Bake Productions, discuss cryptocurrency and blockchain in entertainment.
Also Read: Why the Dive in the Cryptocurrency Marketplace Is Good: ‘Gets Rid of a Lot of The Fat’
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Photo by Randy Shropshire
Jonathan Manzi, CEO & co-founder of Beyond Protocol and Evan Vandenberg, senior manager of OPSkins, discuss cryptocurrency and blockchain in a panel discussion.
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Photo by Randy Shropshire
TheWrap's tech reporter Sean Burch has a conversation outside the Albert Ballroom at the SLS Beverly Hills.
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Photo by Ted Soqui
Audience members listen to a panel discussion at TheGrill 2018.
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Photo by Ted Soqui
Audience members listen to a panel discussion at TheGrill 2018.
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Photo by Randy Shropshire
TheWrap's Jocelyn Johnson talks to Ben Lerer, CEO of Group Nine Media.
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Photo by Ted Soqui
Ben Lerer, founding CEO of Group Nine Media, talks with TheWrap's Jocelyn Johnson.
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Photo by Julia Shakti
TheWrap's Matt Lopez listens to the Digital Media Fireside Chat with Ben Lerer and Jocelyn Johnson.
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Photo by Julia Shakti
Attendees listen intently during a panel discussion at TheGrill 2018.
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Photo by Randy Shropshire
Greg Goodfried, head of digital talent at UTA; Eric Lehrman, head of content development and production at Wattpad; Jacqueline Parkes, CMO & EVP, Digital Studios for MTV, VH1 and Logo Group; Joe Hyrkin, CEO of Issuu, speak about "Digital Media - Monetizing, Distribution and The Role of Stories."
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Photo by Randy Shropshire
Greg Goodfried, head of digital talent at United Talent Agency, leads a panel discussion on digital media.
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Photo by Randy Shropshire
Jacqueline Parkes, CMO & EVP, Digital Studios for MTV, VH1 and Logo Group, discusses monetizing storytelling for digital media.
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Photo by Randy Shropshire
Joe Hyrkin, CEO of Issuu, speaks at TheGrill 2018.
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Photo by Ted Soqui
Eric Lehrman, head of content development and Production, Wattpad, talks on a panel discussing digital media.
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Photo by Ted Soqui
Sharon Waxman, CEO and editor-in-chief of TheWrap, introduces a panel discussion at TheGrill 2018.
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Photo by Randy Shropshire
Audience members listen to a panel discussion at TheGrill 2018.
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Photo by Julia Shakti
The crowd at TheGrill 2018
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Photo by Randy Shropshire
Attendees at TheGrill 2018
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Photo by Randy Shropshire
Attendees at TheGrill 2018
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Photo by Ted Soqui
Will Packer talks in a spotlight panel at TheGrill 2018.
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Photo by Ted Soqui
Will Packer of Will Packer Productions speaks at TheGrill 2018 with TheWrap's Sharon Waxman.
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Photo by Julia Shakti
Attendees listen intently during a panel discussion at TheGrill 2018.
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Photo by Julia Shakti
Attendees listen intently during a panel discussion at TheGrill 2018.
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Photo by Ted Soqui
Will Packer, Sharon Waxman and Sree Sreenivasan take a selfie together at TheGrill 2018.
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Photo by Ted Soqui
Attendees at a cocktail party on Day 1 of TheGrill 2018
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Photo by Ted Soqui
Attendees at a cocktail party on Day 1 of TheGrill 2018
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Photo by Randy Shropshire
Swag and gift options offered at TheGrill 2018
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Photo by Ted Soqui
Attendees at a cocktail party on Day 1 of TheGrill 2018
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Photo by Randy Shropshire
TheWrap's Nina Brown and guest attend TheGrill 2018.
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Photo by Randy Shropshire
Day 2 of TheGrill 2018 kicks off with breakfast sponsored by CBS.
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Photo by Randy Shropshire
TheGrill 2018 breakfast spread included bagels, smoked salmon, fruit, yogurt parfaits and pineapple and watermelon juice.
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Photo by Randy Shropshire
The team from MoviePass, Rod Vanderbilt, Ted Farnsworth and Maayan Nave, attend TheGrill 2018.
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Photo by Ted Soqui
Rod Vanderbilt of MoviePass attends TheGrill 2018.
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Photo by Randy Shropshire
Josh Sapan, president & CEO AMC Networks Inc. and David Nevins, president & CEO Showtime Networks Inc., socialize in the green room ahead of their panel discussion.
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Photo by Randy Shropshire
Sharon Waxman speaks with AMC Networks' Josh Sapan in the green room at the SLS Hotel Beverly Hills.
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Photo by Randy Shropshire
Sharon Waxman and Christine Bragan, VP of Marketing and Communications, AMC Networks, attend TheGrill 2018.
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Photo by Ted Soqui
Josh Sapan, president & CEO AMC Networks Inc. talks with Sharon Waxman at TheGrill 2018.
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Photo by Ted Soqui
David Nevins, president & CEO Showtime Networks Inc., talks with Sharon Waxman at TheGrill 2018.
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Photo by Randy Shropshire
Wyck Godfrey, president of Motion Picture Group, Paramount Pictures, JL Pomeroy, chief marketing officer, IMAX and Julie Rieger, president, chief data strategist and head of Media at 20th Century Fox, discuss "Innovating in Marketing - The Future of Movies," with TheWrap's Thom Geier.
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Photo by Randy Shropshire
Julie Rieger, president, Chief Data Strategist and head of Media at 20th Century Fox, talks at TheGrill 2018
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Photo by Randy Shropshire
JL Pomeroy, chief marketing officer of IMAX, discusses Innovation in Marketing and The Future of Movies.
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Photo by Randy Shropshire
JL Pomeroy of IMAX and Julie Rieger of 20th Century Fox share their thoughts in a panel discussion on TheGrill.
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Photo by Ted Soqui
Sharon Waxman introduces a panel on "Online Ticketing and the Future of Theatrical."
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Photo by Randy Shropshire
Ted Farnsworth, chairman & CEO, Helios & Matheson Analytics, Inc., and Matthew Bakal, co-founder and chairman of Atom Tickets, discuss "Online Ticketing and the Future of Theatrical."
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Photo by Randy Shropshire
Sharon Waxman moderates a discussion on online ticketing with Ted Farnsworth and Matthew Bakal.
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Photo by Randy Shropshire
Matthew Bakal of Atom Tickets discusses the future of theatrical exhibition and online ticketing.
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Photo by Randy Shropshire
Ted Farnsworth, Chairman & CEO of Helios & Matheson Analytics, Inc., discusses MoviePass during a panel discussion at TheGrill.
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Photo by Ted Soqui
An audience member awaits the panel discussion on eSports at TheGrill 2018.
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Photo by Ted Soqui
Malik Forte leads a panel discussion on "The Virtual Gridiron: How eSports Is Changing How We Compete" at TheGrill.
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Photo by Ted Soqui
Daniel Cherry and Damon Lau at the eSports panel discussion moderated by gaming analyst Malik Forte.
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Photo by Ted Soqui
Daniel Cherry, CMO, Activision Blizzard eSports Leagues, discusses "How eSports Is Changing How We Compete."
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Photo by Ted Soqui
Damon Lau, head of eSports at United Talent Agency, discusses "The Virtual Gridiron."
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Photo by Ted Soqui
Matthew Iantosca, Managing Partner at Gerber Kawasaki Wealth Investment, talks on TheGrill's panel on eSports.
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Photo by Ted Soqui
Jared Jeffries, former NBA player and president of Echo Fox, discusses "How eSports Is Changing How We Compete."
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Photo by Ted Soqui
Jared Jeffries's "The Simpsons" socks spied on stage while discussing eSports.
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Photo by Randy Shropshire
Attendees get lunch at TheGrill 2018 provided at the SLS Beverly Hills.
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Photo by Randy Shropshire
Attendees get lunch at TheGrill 2018 provided at the SLS Beverly Hills.
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Photo by Randy Shropshire
Attendees discuss at roundtable breakout sessions during lunch at TheGrill.
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Photo by Randy Shropshire
Attendees get lunch at TheGrill 2018 provided at the SLS Beverly Hills.
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Photo by Ted Soqui
Dr. Patrick Soon-Shiong, Owner & Executive Chairman of The Los Angeles Times, speaks with Sharon Waxman at TheGrill.
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Photo by Ted Soqui
Dr. Patrick Soon-Shiong, Owner & Executive Chairman of The Los Angeles Times, speaks with Sharon Waxman at TheGrill.
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Photo by Randy Shropshire
Beatriz Acevedo, President of Fundacion Acevedo, Jaime Davila, President of Campanario Entertainment, Daniel Batista, co-founder and president of BESE, Rick Rodriguez, COO, head of Content at Pongalo, speak on a panel at TheGrill.
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Photo by Randy Shropshire
Beatriz Acevedo, President of Fundacion Acevedo, moderates a panel discussion on "Diversifying Entertainment Through the Latinx Lens."
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Photo by Randy Shropshire
Jaime Davila and Beatriz Acevedo discuss Latinx diversity in entertainment.
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Photo by Randy Shropshire
Jaime Davila, president of Campanario Entertainment, speaks on a panel discussion about Latin diversity in entertainment.
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Photo by Randy Shropshire
Daniel Batista, co-founder & president of BESE, joins TheGrill's panel "Diversifying Entertainment Through the Latinx Lens."
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Photo by Randy Shropshire
Rick Rodriguez, COO, Head of Content at Pongalo, joins TheGrill's panel "Diversifying Entertainment Through the Latinx Lens."
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Photo by Randy Shropshire
Tim Molloy, executive editor of TheWrap, moderates a discussion on "Artificial Intelligence: Where It's Taking Entertainment."
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Photo by Randy Shropshire
Poppy Crum and Yves Bergquist discuss artificial intelligence at TheGrill 2018.
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Photo by Randy Shropshire
Poppy Crum, chief scientist at Dolby Laboratories, discusses artificial intelligence in entertainment.
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Photo by Randy Shropshire
Yves Bergquist, co-founder & CEO of CORTO, discusses artificial intelligence in entertainment.
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Photo by Randy Shropshire
The main stage in the Albert Ballroom during the afternoon breakout session "Casting in the 21st Century."
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Photo by Randy Shropshire
Sharon Waxman and Rafi Gordon, Co-CEO of Casting Networks, speak during a breakout session, "Casting in the 21st Century."
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Photo by Randy Shropshire
Alex Amin (right), Co-CEO of Casting Networks, speaks in an afternoon breakout session on "Casting in the 21st Century."
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Photo by Randy Shropshire
Victoria Burrows, casting director behind "The Lord of the Rings" trilogy of films and others, joins a breakout session on "Casting in the 21st Century."
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Photo by Ted Soqui
An attendee gets a free t-shirt upon checking in at TheGrill 2018.
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Photo by Ted Soqui
The Producers Roundtable during an afternoon breakout session, as led by Jay Cohen, head of the Financing Division at Gersh Agency.
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Photo by Ted Soqui
Jocelyn Johnson, director of Digital Video News and Membership at TheWrap, and Peter Csathy, founder & chairman, CREATV Media, lead an afternoon breakout session on Silicon Beach.
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Photo by Ted Soqui
The Silicon Beach Roundtable, as moderated by Peter Csathy and Jocelyn Johnson.
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Photo by Randy Shropshire
The 2018 Innovators Panel at TheGrill as moderated by Sharon Waxman.
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Photo by Randy Shropshire
Matt Stern, COO of Mira Augmented Reality, speaks on the 2018 Innovators Panel.
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Photo by Randy Shropshire
Matt Stern of Mira Augmented Reality shows off an early version of the company's augmented reality glasses.
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Photo by Randy Shropshire
Fanshen Cox DiGiovanni, a playwright and activist who pioneered the adoption of inclusion riders, speaks on the 2018 Innovators Panel.
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Photo by Randy Shropshire
Colin Petrie-Norris, CEO of Xumo, speaks on the 2018 Innovators Panel.
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Photo by Randy Shropshire
Michael Wann, CEO of MobCrush, speaks on the 2018 Innovators Panel.
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Photo by Ted Soqui
Trey Williams and Francisco Delgado of TheWrap interview Innovators List honoree Fanshen Cox DiGiovanni
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Photo by Ted Soqui
Trey Williams and Francisco Delgado of TheWrap interview Daniel Cherry, CMO, Activision Blizzard eSports Leagues at the cocktail party post-TheGrill.
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Photo by Ted Soqui
MoviePass provided gift bags to attendees of TheGrill's post-event cocktail party
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Photo by Randy Shropshire
The scene at the cocktail party presented by MoviePass
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Photo by Ted Soqui
The scene at the cocktail party presented by MoviePass
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Photo by Ted Soqui
Sharon Waxman and Thom Geier of TheWrap talk with MoviePass's Rod Vanderbilt at the cocktail party post TheGrill.
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Photo by Ted Soqui
Michael Wann of MobCrush attends TheGrill cocktail party
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Photo by Ted Soqui
The scene at the cocktail party presented by MoviePass
Entertainment, media and technology converge at TheWrap’s 8th Annual Grill Conference at SLS Hotel Beverly Hills
TheWrap's 2018 TheGrill conference gathers up the biggest thought leaders in Hollywood, media and technology at SLS Hotel, a Luxury Collection Hotel, Beverly Hills.