Bustle Digital Group Launches Production Studio in Partnership With Hero Collective

Bustle Digital Group, the publisher of nine titles including Bustle, Elite Daily, Input, Inverse, Mic, Nylon, Romper and The Zoe Report, has partnered with the Black-owned creative agency Hero Collective to launch a new production studio called Undercurrent. The new production group, which complements BDG’s existing 65-person in-house production team BDG Studios, will develop branded content for BDG advertising partners with a focus on social impact issues, especially those concerning race, gender and sexuality. It expects to generate “low-mid seven figures” in its first 12 months, according to a company representative, and will be staffed by existing Hero Collective and BDG Studios employees. Through its nine brands, BDG reaches 84 million readers monthly, of whom 10 million identify as multicultural women, 6 million identify as LGBTQ+, and nearly 17 million identify as Black or brown, according to the publisher. In partnering with Hero Collective, BDG hopes to develop branded content that resonates with its diverse audience and to attract advertising partners that want to reach those viewers. "We feel that there is a responsibility to tell credible, authentic stories of individuals of color," said Joe Anthony, the founder of Hero Collective. Branded content makes up 70% of BDG's revenue The Bustle Digital Group generated nearly $100 million in revenue in 2020, with 70% of that coming from branded content, said president and chief revenue officer Jason Wagenheim. In 2020, the publisher increased its total revenue by 5%, and its fourth-quarter revenue jumped 25% year over year, a spike the publisher attributes to affiliate commerce and its branded content. In the first quarter of 2021, revenue has risen 27% compared to the year prior, but BDG still sees room to grow in the realm of branded content. The production studio will focus primarily on creating video content, an area Anthony says is primed for growth. Undercurrent will target advertisers industries, such as including consumer product goods, automotive, financial services, beauty and technology. The production studio will group its content into four buckets: social and criminal justice (Humanity), innovation (Hustle), wellness and beauty (Health and Happiness), and Black and brown luminaires (Hello). Brands that incorporate social-impact narratives into their stories experience engagement and conversion rates three to five times higher than the industry average, Wagenheim said. By combining the authenticity of Hero Collective and the scale of BDG, Undercurrent hopes to offer brands a rare marketing resource. "The last year has taught us about the ways that media companies can have a meaningful impact on the world as it relates to telling diverse stories," Wagenheim said. Branded content offers advertising partners a way to credibly associate themselves with social justice causes they support, said Claudia Cahill, the chief content officer of Omnicon Media Group. Because branded content requires a greater depth of involvement and partnership, the higher barrier to entry acts as testament to the advertising partner's sincerity. "Brands have realized, especially after 2020, that you can't just slap your logo on something and expect to be taken seriously," Cahill said. "Your commitment has to be serious and it has to be long-standing." Bustle bounces back Last April, the pandemic forced BDG into cost-saving cuts, which led the company to lay off 24 staff, about 8% of its total workforce. Thanks to the quick measures and strong financial performance, BDG has since hired back many of the staff it let go. The publisher now has 7% more employees than it did in January 2020, Wagenheim said. The pandemic also led consumers to spend more on ecommerce, a change in behavior that BDG was able to capitalize on thanks to its affiliate programs. The changing cultural and business landscape of 2020 also encouraged BDG to think more creatively about its revenue streams, which helped lead to its partnership with Hero Collective. The publisher realized that in order to leverage its diverse readership, it needed to work alongside a creative studio that could better articulate the perspectives of Black and brown communities. Bustle Digital Group Makes Staff Cuts Due to Coronavirus

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Bustle Digital Group Launches Branded Content Arm in Partnership With Hero Collective

Branded content makes up 70% of the revenue generated across BDG’s nine brands

Mark Stenberg

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