BuzzFeed Aims To Cut Out Google “Middlemen”
BuzzFeed Aims To Cut Out Google “Middlemen”
BuzzFeed founder and CEO Jonah Peretti said that the site will continue to cut out digital “middlemen.” CORBIS VIA GETTY IMAGES
BuzzFeed plans to solve a “longstanding problem in the media” by cutting out “middlemen” like Google as it expands its commerce business.
When news organizations like BuzzFeed produce videos and articles that inspire people to buy something — whether an ingredient from a recipe, a product from a how-to video, or a hotel or flight from a travel profile — they often don’t reap any revenue from the transaction. Instead, sites like Amazon, Google, or online travel agency Expedia benefit.
“The two most important players in this chain are the publisher who inspired a consumer to take action and the companies that actually deliver the product,” BuzzFeed cofounder Jonah Peretti wrote Friday.
“But most of the profit is captured by digital middlemen who didn’t create much value.”
The site wants to solve this so-called “attribution problem” by instead forming partnerships directly with the providers of the goods, like airlines, hotels, or brands.
While BuzzFeed and many other sites already use affiliate linking for products in gift guides or round-ups, where they get a small payout for any purchase made, the idea is to make the model more lucrative and expand to new industries.
For example, Peretti mentions a plant subscription service the company recently launched in partnership with Scott’s Miracle-Gro.
The general critique — that Google and other platforms unduly siphon profits — has come under closer scrutiny recently as antitrust investigations heat up against the tech giants.
Last fall, business owners rallied against Google for allowing businesses to advertise against a competitor’s name.
BuzzFeed’s commerce expansion is part of its roadmap for 2020, which also includes paid social features and a greater reliance on primary documents.
