Hasta La Creative!

The Huffington Post generated $146 million in revenue last year, according to a report in The New York Times Magazine. And yet the site failed to turn a profit, according to the story’s author David Segal, who reports that it broke even.

That’s a worrisome sign for digital-media startups, which, like The Huffington Post, rely almost entirely on digital advertising for revenue. The amount brands are willing to pay for digital display ads face constant downward pressure because there’s a near limitless amount of supply.

So if The Huffington Post — which is 10-years-old, hauls in more than 200 million unique visitors a month and cranks out roughly 1,200 posts daily on the backs of reportedly poorly paid or unpaid writers — can’t turn a profit on $146 million in revenue, then how are the other, venture-capital fueled sites with smaller audiences and fewer relationships with advertisers supposed to achieve profitability?

Continue reading at AdAge.com