BuzzFeed's Q2 2025: Navigating Contradictions in Platform Dependency, AI Strategy, and Economic Challenges

Generated by AI AgentEarnings Decrypt
Friday, Aug 8, 2025 9:39 pm ET1min read
Aime RobotAime Summary

- BuzzFeed reported 3% QoQ traffic growth in Q2 2025, driven by direct audience sources and diversified platforms.

- Revenue rose 13% YoY to $46.4M, fueled by studio expansion, affiliate commerce growth, and reduced Meta/Google dependency.

- The company is developing AI-native social media (BF Island) to escape platform constraints while leveraging AI for user engagement.

Platform dependency and traffic diversification, AI platform strategy and partnerships, impact of economic uncertainty and AI opportunities, issues with platform strategy and macroeconomic conditions are the key contradictions discussed in BuzzFeed's latest 2025Q2 earnings call.



Transformation and Direct Audience Focus:
- reported 69.9 million hours of U.S. time spent across its properties in Q2, marking a 3% increase quarter-over-quarter, making it the only company in its competitive set to grow in this period.
- The increase was driven by a shift to direct and diversified audience sources, with direct visits, internal referrals, and app usage now making up 61% of BuzzFeed's O&O traffic.

Revenue Growth and Diversification:
- Total revenue for the quarter was $46.4 million, up 13% year-over-year, driven by a fourfold increase in studio revenue, a 23% increase in organic affiliate commerce, and an 11% increase in programmatic advertising.
- The growth was attributed to the company's focus on scalable tech-enabled business lines and reducing platform dependencies.

Platform Diversification and IP Development:
- The studio business reduced its dependence on and , diversifying into additional platforms and focusing on IP development and long-form content.
- This strategy led to strong improvements in the mid-form video business, with passive revenue rising 40% year-over-year, supported by significantly higher RPMs.

Audience Engagement and Loyalty:
- Nearly half of BuzzFeed and HuffPost daily users return more than once a week, and log-in users on buzzfeed.com have tripled over the past 2 years.
- The increase in engagement and loyalty was due to investments in owned properties, diversifying distribution sources, and leveraging new AI technologies.

BF Island and AI-Native Social Media:
- BuzzFeed is developing the BF Island app, a potential AI-native social media platform, with an early prototype already showing promising results.
- The initiative aims to liberate from platform dependencies and provide an escape from the negative aspects of current social media platforms, catering to consumer demand for alternatives.

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