BuzzFeed’s Emerging Threat to Ad Agencies

Among the new initiatives mentioned in BuzzFeed’s latest funding news was that the fast-growing online publisher will build out its in-house creative agency for advertisers.

In doing so, BuzzFeed, which investors say is on track to generate at least $100 million in revenue this year, is also engaging in a creeping turf war with traditional advertising agencies. Those agencies already have seen their roles diminished as more advertisers work directly with other online publishers.

While nearly all of the ad executives who spoke with The Information said they had a good relationship with BuzzFeed and its creative services team, they are wary of the new reality of hybrid publisher-agencies that the company represents.