KKB Talk: Chatting with Jon Steinberg, COO of Buzzfeed

Kelly Killoren Bensimon talks with BuzzFeed COO Jon Steinberg about the future of media.

Jon Steinberg, chief operating officer of BuzzFeed, is taking social media and advertising by storm. By marrying content with advertising, Steinberg’s new approach is to use innovative branded content. This is how, he says, media will make money in the digital age — ads disguised as editorial content. Co-founded by Jonah Peretti, the site’s mission is to capture the essence of viral media resonating online. A Columbia MBA grad and ex-Google soldier, Steinberg has a lot to say about Snapchat, the future of BuzzFeed and how to make journalism sustainable on the Internet.

You have a strong female following on BuzzFeed.
Everyone loves social content. Because of our fashion and culture amalgamation, it’s pretty balanced, 50-50.

Tell me about your concept to create advertiser-sponsored content.
The great advertising techniques of David Ogilvy are no longer. Rather than use banners, we work with brands to create shareable content.

Are you going to create the new advertising model?
Even The New York Times is talking about this kind of content. It’s the way we see the future.

What’s your marketing strategy?
Put content in places where brands are interested in this new form of advertising. And keep our clients happy. We have approximately an 80% renewal.

 What’s your business model?
 Branded advertising is our model. We continue to grow and sell media. We are a media company.

What do you think of Snapchat passing on a $3 billion cash offer from Facebook?
They get over 35 million snaps a day. It’s transformative and they are onto something big. Facebook, LinkedIn and Snapchat are in the pantheon of social media.

What’s the best thing you learned from your MBA?
Accounting. It’s a fundamental way to keep a hand on the steering wheel of the ship. I use accounting every day. As an entrepreneur, it’s crucial to know cash flow on an income statement.

What’s the worst mistake you can make with a startup?
Raising capital is like putting fuel in a rocket. You always want to spend cash frugally, and you want some to make a runway. In 2013, we are raising much less capital. It’s an era of burn faster and harder rather than dragging things out.

What’s the best thing that has happened at a startup?
The change is dramatic and quick. ... It’s the surprise and magic that gets me excited. ... Innovation is magic.

What did you learn from Google?
I learned to work in a consensus organization where everyone’s opinion counts. I learned how to work with other people, and about advertising. I learned how to create something powerful, and collaborate with others.

What’s your five-year plan?
To build a leading media company. We want to be there for the social era to have everything available online.

Why is the internet obsessed with cats?
With a cat, you never really know what a cat is thinking. It’s independent and a surprising thinker. Nothing will surprise you like a cat.

Any advice for entrepreneurs?
No one can tell you how to do something new. You can learn from your mentors, and how to structure yourself. I always trust my gut, and seek help when it comes to operating.