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a16z Podcast | For Buzzfeed Sharing is the Metric that Matters
22 segments available
Jonah Peretti is building BuzzFeed to “inform, inspire and entertain” in a world where news and entertainment is increasingly passed around on social networks and consumed on smartphones. Chris Dixon, who is on the board of BuzzFeed as part of Andreessen Horowitz’s recent investment in the startup, sat down with Peretti to talk about building a media company from scratch. If editorial success is driven by digital word-of-mouth, and mountains of data about what people like to read and watch, what does Peretti do differently? Why do BuzzFeed’s lists work so well? Does video finally make financial sense? And why, even if it’s a traffic monster now, is Peretti not religious about any particular format -- including lists. (For more on Dixon’s take on the media business, and BuzzFeed’s “full stack” approach check out this recent post: cdixon.org/2014/08/10/buzzfeed/)
Segments Timeline
Introduction to BuzzFeed
Chris Dixon introduces Jonah Peretti, the founder and CEO of BuzzFeed, discussing the recent investment by Andreessen Horowitz. Peretti shares the vision behind BuzzFeed, emphasizing its role in informing, inspiring, and entertaining audiences in a rapidly changing media landscape.
"hi this is Chris Dixon this is the a 16z podcast today I'm here with Jonah Peretti the founder and CEO of BuzzFeed we announced I guess a few weeks ago now that we invested in BuzzFeed so we're very e..."
The Shift in Media Consumption
Jonah Peretti explains how the consumption of media has shifted dramatically over the past decade due to social media, mobile devices, and digital video. He highlights BuzzFeed's adaptation to these changes, positioning it as a media company tailored for the social mobile world.
"maybe you could start by just sort of for people that don't know explaining the premise of BuzzFeed why you started it yeah so the idea the idea behind BuzzFeed is that you know people still want to b..."
Data-Driven Content Creation
Peretti discusses the importance of data in modern media, emphasizing that BuzzFeed leverages consumer data to inform content creation. He contrasts traditional media's reliance on guesswork with BuzzFeed's approach of using real-time feedback to understand audience preferences.
"really is a media company for the social mobile world so and so you know someone might say okay great people read stuff on their mobile phone now they click on stuff on Facebook but how does that real..."
The Role of Sharing as a Metric
Peretti highlights sharing as the most critical metric for BuzzFeed, indicating that it reflects the value of content to consumers. He explains how this shift in focus from traditional metrics to sharing impacts content strategy and audience engagement.
"from a business perspective there's differences in cost structure so you know printing and broadcast you don't have a trucks and we don't have timber interests and pulping mills and we don't we don't ..."
Navigating Data and Audience Engagement
Peretti elaborates on the challenges of translating data into actionable insights. He stresses the importance of understanding deeper audience needs rather than just optimizing for short-term clicks, aiming for a positive impact on readers' lives.
"always been the the biggest metric because it shows someone thinks that a piece of content is worth passing on to a friend and so you've always had this word-of-mouth people watch a television show th..."
The Evolution of News Economics
Peretti addresses the changing landscape of news organizations, discussing how the internet has disrupted traditional geographic monopolies. He argues that while some believe this has harmed the news industry, it has also opened new opportunities for competitive advantage.
"back about what people like and what people share and that can immediately inform the media you're creating so instead of just guessing and making something and hoping it's a hit you're you're able to..."
Building a Defensible Media Business
Peretti shares insights on creating a successful media company in the modern era, emphasizing the importance of technology, data science, and audience engagement. He argues that these elements can lead to a defensible business model despite the challenges posed by the internet.
"short term our goal is to use the data to understand on a deep level what kind of media people want to share and consume and and to have a bigger impact on people's lives and a positive impact on peop..."
The Scale of Opportunity in Digital Media
Peretti discusses the vast addressable market for digital media, noting the potential for reaching billions of users through smartphones. He explains how this scale can compensate for lower margins, allowing for the growth of substantial media businesses.
"like more meaningful long-term signals so one line of argument today is that media companies like news news organizations in particular had kind of or printed news had local monopolies in the past and..."
Misunderstandings of Digital Monetization
Peretti addresses common misconceptions about digital monetization, particularly regarding the comparison between print and online audiences. He clarifies that while print may have had fewer subscribers, digital platforms can reach a much larger audience, impacting revenue potential.
"dominant news company in the modern era and what are the barriers to entry yes so there used to be local there used to be low-key graphic based monopolies and spectrum based monopolies so if you were ..."
Insights from Social Networks
Peretti shares his observations on the evolution of social networks and their impact on content creation. He likens social networks to cable networks, explaining how BuzzFeed tailors its content for different platforms to maximize engagement and reach.
"came very difficult for someone else to like create another newspaper and the argument is on the internet that's not true and there's a million blogs and everyone's on equal footing and and so you can..."
The Expanding Digital Audience
Jonah Peretti discusses the explosive growth of the digital audience, highlighting that the number of internet-connected smartphones is projected to reach 5 billion. He explains how this vast scale compensates for lower monetization rates, emphasizing that media companies can now reach a much larger audience than ever before, which is crucial for building a successful business in today's landscape.
"the addressable market is now there are I think the last numbers I saw two and a half billion people was Internet connected smartphones that number a lot of people think is going to 5 billion very soo..."
Adapting Content for Social Networks
Peretti compares social networks to cable networks, explaining how BuzzFeed tailors its content for platforms like Facebook and Pinterest. He emphasizes the importance of understanding different distribution methods and how they influence content creation, allowing BuzzFeed to thrive in a rapidly changing media environment.
"to you to get little insights into social networks and things because you as a content creator sit on the cutting edge of this and see you know the rise of Pinterest and whatsapp and all sorts of othe..."
Video Consumption Surprises
In this segment, Peretti shares surprising insights about video consumption on mobile devices, revealing that BuzzFeed achieved 400 million video views in a month, with a significant portion coming from mobile. He discusses how users are increasingly comfortable consuming long-form content on their phones, challenging previous assumptions about mobile media consumption.
"contexts on different platforms and so we you know I've been shocked that that our video consumption we did 400 million video views last month and about half as mobile like I thought video wouldn't be..."
The Power of Lists and DIY Content
Peretti explains why BuzzFeed's lists and DIY content resonate so well with audiences, noting that Pinterest drives more traffic to BuzzFeed than Twitter. He discusses the format's social sharing advantages and how it allows users to engage with content in a more interactive way, enhancing the overall user experience.
"Pinterest and you do things like do the lists tell me if I'm wrong like some of the lists in the DIY section you can pin just one of the items as example right as opposed to pinning the whole list yea..."
Challenging Media Norms
Peretti addresses the criticism BuzzFeed faces for its innovative formats, such as lists and quizzes, arguing that traditional media has always mixed serious content with lighter fare. He emphasizes the importance of evolving media formats and how new approaches can coexist with established norms, ultimately enriching the media landscape.
"about around lists I mean we we really don't see ourselves as a company that is wedded to any particular format and what's so exciting about not having a legacy business is that is that we're not tied..."
Redefining Native Advertising
In this segment, Peretti explains BuzzFeed's approach to native advertising, which he refers to as branded content. He contrasts it with traditional advertising methods, emphasizing the importance of creating compelling content that resonates with users. Peretti aims to integrate advertising seamlessly into the user experience, similar to how Google has approached its ad model.
"sure let's talk about native advertising you call it branded content just can you describe what that means to you first I guess and yeah I mean back to my previous company which was the Huffington Pos..."
The Value of Compelling Content
Peretti discusses the significance of creating content that users genuinely want, rather than relying on disruptive banner ads. He critiques the traditional ad model and advocates for a more integrated approach where branded content enhances the overall user experience, drawing parallels to successful examples like Vogue and the Super Bowl.
"church-state separation so the organic search results are relevant results for a keyword query and the branded results are relative versus the critical thing to understand is that Google ads are relev..."
The Future of Advertising Models
Peretti shares insights on the declining effectiveness of banner ads, especially on mobile devices. He predicts a shift towards paywall models and native advertising as viable options for monetization. This segment underscores the need for media companies to adapt to changing consumer behaviors and technological advancements.
"think it's funny like people people in Silicon Valley a very widespread adage is to make things that people want yeah and yet somehow when it comes to monetization that they forget that and they put u..."
BuzzFeed's Vision for Video
In this concluding segment, Peretti expresses excitement about the growth of BuzzFeed's video content. He highlights the platform's evolution over the past two years and the potential for video to engage audiences in new ways. This reflects BuzzFeed's commitment to leveraging innovative formats to inform and entertain.
"advertising right or at least at least one of the original ones right because the ads are compelling they're the same format they're video you know 30-second whatever videos yeah for sure I mean it's ..."
The Rise of Video at BuzzFeed
Peretti shares his excitement about the rapid growth of BuzzFeed's video production capabilities. He explains how the company has transformed its approach to video, allowing for quick content creation and audience feedback, which contrasts with traditional Hollywood models.
"think that'll change very quickly yeah I mean we find sometimes people criticizing BuzzFeed are actually criticizing someone whose coffee and BuzzFeed which is frustrating what so so the next couple y..."
Leveraging Social Media for Video Success
In this segment, Peretti discusses the convergence of social media and video consumption. He highlights how trends in mobile video are enabling BuzzFeed to reach larger audiences and the importance of understanding audience engagement across different platforms.
"of scenarios so a school an office a cafe a dungeon you know whatever you want and then we have a team that can that brainstorms ideas for concepts they want to do and then quickly can shoot videos re..."
Cross-Network Sharing Insights
Peretti elaborates on the significance of cross-network sharing in understanding content performance. He explains how BuzzFeed analyzes data from multiple social networks to gauge the quality and reach of content, providing valuable insights for both content creation and advertising strategies.
"creating so video is really exciting International is exciting we were one of the biggest sites in the UK now and and have the the if you if you want to see what the UK's site is like there's a you ca..."