BuzzFeed News and Paper Magazine have shut down their operations, citing financial challenges caused by decreased ad revenue and other causes.
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BuzzFeed News announced earlier this month that it would cease all operations, citing a lack of ad revenue from returning news subscribers as the company relied heavily on social media platforms such as Facebook, making it more difficult for readers to click on the website to read articles and other content. However, in the last decade, there have been significant changes in how internet consumers receive news. According to Bloomberg, 39% of BuzzFeed’s main group, 18-24-year-olds, said social media was their major news source last year, compared to 34% who only use news websites or apps.
Although BuzzFeed is not completely abandoning its news section, it will continue to function under HuffPost because it relies less on social traffic. On Thursday, Paper Magazine stated that it is discontinuing its editorial operations and laying off 20-30 employees owing to a similar issue with dwindling ad revenue and cost reduction.
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Advertisers are seeking ad revenue on social media platforms on Instagram and TikTok as they can attract a younger audience as the publications failed to maintain to remain relevant and financially stable. Other outlets, such as Insider, have faced a similar issue as social media remains a top priority for audiences to receive their news.
Social media has also reacted to these closures as BuzzFeed News was a primary source for news and creating original content. In contrast, Paper Magazine captured unique art, fashion, and lifestyle aspects through a different lens. Additionally, the recent layoffs have caused great concern for those who have worked in journalism for years as the market changes how people receive their news.