What's Happening?
BuzzFeed Inc. reported a significant shift in audience engagement during the third quarter of 2025, with direct traffic to BuzzFeed.com surpassing referrals from Facebook and Google for the first time.
This strategic pivot marks a reduction in platform dependency, as direct visits, internal referrals, and app usage now account for 63% of BuzzFeed.com traffic. Despite this achievement, the company faced a challenging financial quarter, with revenues falling 17% year-over-year to $46.3 million. Advertising revenue dropped 11% to $22.2 million, content revenue fell 33% to $7.2 million, and commerce revenue declined 15% to $17 million. The net loss from continuing operations widened to $7.4 million, and adjusted EBITDA fell 91% to $753,000. CFO Matt Omer attributed the revenue decline to softness in direct-sold advertising, a decrease in affiliate bonuses, and difficult comparisons to the previous year's presidential election cycle.
Why It's Important?
The shift towards direct traffic is significant for BuzzFeed as it reduces reliance on external platforms like Facebook and Google, which have increasingly kept users within their ecosystems through AI features. This strategic move allows BuzzFeed to deepen its relationship with Gen Z and Millennial audiences, providing more control and room for innovation. However, the revenue decline highlights broader market challenges faced by digital publishers, including reduced advertising demand and changes in affiliate commission structures. As digital advertising patterns evolve, with major players like Amazon, Google, and Meta dominating ad dollars, publishers must develop alternative strategies to sustain audience engagement and revenue.
What's Next?
BuzzFeed has revised its full-year 2025 guidance, expecting revenue between $185 million and $195 million, down from previous expectations. The company anticipates positive adjusted EBITDA for the full year, driven by seasonal strengths in commerce and advertising during Q4. BuzzFeed plans to focus on direct audience engagement and product development, with founder and CEO Jonah Peretti indicating increased involvement in these initiatives. The company aims to leverage seasonal shopping windows like Black Friday and Cyber Monday to boost affiliate commerce revenue.
Beyond the Headlines
BuzzFeed's pivot away from platform dependency reflects a broader trend among digital publishers seeking sustainable audience acquisition strategies. The company's focus on direct traffic aligns with industry shifts towards reducing reliance on intermediated platform relationships, as AI-powered search features and algorithm changes continue to impact referral traffic. This strategic orientation may influence long-term business models across the digital media landscape, prompting publishers to innovate and adapt to changing audience behaviors.
