Ziff Davis reports strong Q2 advertising growth amid AI integration

Ziff Davis delivered robust second-quarter financial results on August 6, 2025, with total revenues climbing 9.8% to $352.2 million compared to $320.8 million in the prior year period. The technology-focused digital media company exceeded analyst expectations while continuing its transformation through strategic acquisitions and artificial intelligence deployment across its advertising platforms.

The company reported adjusted earnings per share of $1.24, surpassing the consensus estimate of $1.22. Revenue performance marked the strongest quarterly growth since 2021, representing four consecutive quarters of year-over-year revenue increases. Net income reached $26.3 million for the quarter, with adjusted EBITDA growing 11.8% to $107.7 million.

Advertising segment drives performance

Advertising and performance marketing revenues surged 15.5% to $197 million during the quarter, according to Ziff Davis financial statements. The growth primarily stemmed from the company's Health & Wellness segment, which generated $82.5 million in advertising revenues, and Technology & Shopping segment, which contributed $78.8 million.

CEO Vivek Shah emphasized the significance of owned and operated web traffic in the company's advertising strategy. "35% of the company's total revenues are ads on our O&O web traffic, and about 40% of that comes from search," Shah stated during the August 7, 2025 earnings call. This positioning differentiates Ziff Davis from programmatic advertising-dependent competitors, with programmatic representing less than $50 million of annual revenue.

The company's new segment reporting structure revealed Health & Wellness as the largest advertising category, comprising 42% of total advertising business. Technology and Shopping combined represented another 40%, while Gaming contributed 16% of advertising revenues.

AI deployment across operations

Ziff Davis has accelerated artificial intelligence integration throughout its advertising and content operations. The company launched multiple AI-powered initiatives during the quarter, including proprietary audience segmentation technology and customer service automation.

According to Shah, the company developed "an AI platform that creates precise audience segments" powered by hundreds of millions of real-time data signals collected across its portfolio. The platform, branded as "Halo" within the Everyday Health group, enables advertisers to target users with what the company terms "moment of influence solutions."

AI implementation extends beyond advertising technology. The company reported that its RetailMeNot platform deployed an AI customer service chatbot achieving approximately 50% case deflection rate for inbound inquiries. Within the Lose It! weight loss application, AI-powered voice and photo meal logging features increased user engagement, with members logging meals three and a half times faster.

Technical details and infrastructure

The company's AI initiatives rely on first-party data collection across its diverse property portfolio, which spans technology, gaming, health, connectivity, and cybersecurity verticals. These data signals are processed through proprietary systems that create addressable audience segments deployable across owned properties, third-party networks, and social media platforms.

Privacy protection remains central to the implementation, according to company statements. The AI platform operates exclusively on first-party data, avoiding reliance on third-party cookies or external tracking mechanisms that face increasing regulatory scrutiny.

Business segment performance

Technology & Shopping segment revenues increased 11.3% to $80.8 million, driven primarily by the CNET acquisition completed in September 2024. The segment benefited from CNET's partnership renewal with Best Buy, enabling cross-platform advertising sales and content integration across retail touchpoints.

Gaming & Entertainment segment grew 7.5% to $46.2 million, supported by IGN's expanded event programming. The company's IGN Live event in Los Angeles during June reached over 300 million fans globally, up 91% year-over-year, with video views increasing 26% to 202 million.

Health & Wellness delivered the strongest segment growth at 15.7%, reaching $99.5 million in quarterly revenues. The segment continues expanding beyond pharmaceutical advertising to broader health and wellness brands, including recent partnerships with lifestyle brands and longevity-focused companies.

Connectivity segment revenues rose 14.2% to $57.4 million, demonstrating double-digit organic growth. The segment benefits from increasing demand for network performance data from service providers and emerging market expansion across EMEA and APAC regions.

Cybersecurity & Martech segment revenues declined 0.9% to $68.3 million but showed positive momentum with new product launches. The company introduced Viper Integrated Email Security during the quarter, utilizing AI-powered threat detection for small and medium businesses.

Financial position and outlook

Ziff Davis maintained a strong balance sheet with $457 million in cash and cash equivalents as of June 30, 2025. The company carries $872 million in gross debt, resulting in a 1.7x leverage ratio against trailing twelve-month adjusted EBITDA.

During the quarter, Ziff Davis completed three acquisitions totaling approximately $11.4 million, expanding capabilities across Health & Wellness and Cybersecurity & Martech segments. The company also repurchased 1.4 million shares for $33.9 million as part of its ongoing capital return program.

The company reaffirmed its fiscal 2025 guidance, projecting revenues between $1.442 billion and $1.502 billion, representing 5.0% growth at the midpoint. Adjusted EBITDA guidance ranges from $505 million to $542 million, indicating 6.0% growth expectations.

Industry implications for marketing community

For the marketing community, Ziff Davis's results highlight several important trends affecting digital advertising strategies. PPC Land's analysis of pay-per-click advertising indicates growing emphasis on first-party data as privacy regulations reshape targeting capabilities.

The company's success with AI-powered audience segmentation demonstrates practical applications for marketing technology. Unlike experimental AI implementations, Ziff Davis reports measurable performance improvements including increased user engagement and operational efficiency gains.

Recent research shows 72% of marketers plan to increase programmatic advertising investment in 2025 as marketers seek privacy-compliant targeting methods. Ziff Davis's approach, emphasizing owned media properties and first-party data, aligns with industry shifts away from third-party tracking dependencies.

The company's segment diversification across technology, health, gaming, and cybersecurity provides marketing professionals insights into vertical-specific advertising performance. Health & Wellness advertising particularly demonstrates strength, reflecting demographic trends toward longevity and wellness-focused consumer spending.

Market positioning and competitive dynamics

Ziff Davis operates in an increasingly competitive digital media landscape where major platforms like Amazon are reducing their advertising dependencies. The company's emphasis on owned and operated properties provides greater control over revenue streams compared to platforms reliant on external advertising networks.

The company's AI deployment strategy focuses on practical implementation rather than speculative technology adoption. Customer service automation, content optimization, and audience targeting represent immediate value-generating applications rather than experimental initiatives.

Technical infrastructure investments support cross-platform advertising capabilities, enabling marketers to execute campaigns across websites, applications, and social media properties from unified platforms. This integration addresses increasing demand for omnichannel advertising strategies.

Forward-looking considerations

Management expects continued growth momentum through the remainder of 2025, with particular strength anticipated in Health & Wellness and Connectivity segments. The company projects mid-single digit revenue growth for both third and fourth quarters, with Q4 potentially demonstrating stronger performance due to seasonal factors.

Artificial intelligence development remains a strategic priority, with additional AI-powered products planned for deployment across all business segments. The company's approach emphasizes measurable business outcomes rather than technological capabilities, addressing enterprise concerns about AI return on investment.

International expansion continues through emerging market penetration, particularly in EMEA and APAC regions for connectivity services. The company's global presence supports advertising clients seeking international reach while maintaining local market expertise.

Timeline

• August 6, 2025: Ziff Davis announces Q2 2025 financial results showing 9.8% revenue growth
• August 7, 2025: Company hosts earnings call discussing AI implementation and strategic initiatives
• June 2025: IGN Live event reaches 300 million fans globally, demonstrating content platform scale
• May 2025: Industry research reveals 72% of marketers plan increased programmatic investment in 2025
• Industry research reveals 72% of marketers plan increased programmatic investment
• February 2025: Google launches Meridian marketing mix modeling platform for privacy-compliant measurement
• January 2025: State of Programmatic Report shows ID coverage dropping below 50% for mobile advertising

PPC Land explains

Artificial Intelligence (AI): Artificial intelligence emerged as the central technology driver throughout Ziff Davis's Q2 2025 performance, with the company deploying AI across multiple operational areas including audience segmentation, customer service automation, and content optimization. The company's AI initiatives focus on practical business applications rather than experimental implementations, with measurable outcomes including 50% customer service case deflection rates and accelerated user engagement metrics. Ziff Davis's AI strategy emphasizes first-party data utilization and privacy-compliant operations, positioning the company advantageously as the industry shifts away from third-party tracking dependencies.

Advertising Revenue: Advertising revenue represents Ziff Davis's primary growth engine, increasing 15.5% to $197 million during Q2 2025 and demonstrating the company's successful monetization of its diverse digital media portfolio. The advertising business spans multiple verticals including health and wellness, technology and shopping, and gaming entertainment, with Health & Wellness comprising 42% of total advertising revenues. The company's emphasis on owned and operated web properties provides greater control over advertising inventory compared to programmatic-dependent competitors, with only $50 million in annual programmatic revenue out of total company revenues exceeding $1.4 billion annually.

First-Party Data: First-party data serves as the foundation for Ziff Davis's AI-powered advertising platform, enabling the company to create precise audience segments without relying on third-party cookies or external tracking mechanisms. The company collects hundreds of millions of data signals across its property portfolio, processing this information through proprietary systems to deliver what it terms "moment of influence solutions" for advertisers. This approach aligns with industry-wide shifts toward privacy-compliant advertising strategies, as regulatory pressures and platform changes reduce the effectiveness of traditional tracking methods.

Segment Performance: Segment performance analysis reveals the diversified nature of Ziff Davis's business model, with four of five reportable segments demonstrating year-over-year growth during Q2 2025. Technology & Shopping grew 11.3%, Gaming & Entertainment increased 7.5%, Health & Wellness expanded 15.7%, and Connectivity rose 14.2%, while only Cybersecurity & Martech declined slightly at 0.9%. This diversification provides stability against market volatility while enabling the company to capitalize on growth opportunities across different industries and consumer segments.

Revenue Growth: Revenue growth of 9.8% to $352.2 million during Q2 2025 represents Ziff Davis's strongest quarterly performance since 2021, marking four consecutive quarters of year-over-year increases. The growth reflects successful integration of strategic acquisitions, effective AI deployment, and strong advertising market performance across the company's core verticals. Management projects continued growth momentum through 2025, with full-year revenue guidance ranging from $1.442 billion to $1.502 billion, representing 5.0% growth at the midpoint compared to 2024 performance.

Health & Wellness: Health & Wellness emerged as Ziff Davis's strongest-performing segment, generating $99.5 million in quarterly revenues with 15.7% year-over-year growth, driven by both pharmaceutical advertising and broader wellness brand partnerships. The segment benefits from demographic trends toward longevity-focused consumer spending and expanding beyond traditional pharma clients to include lifestyle brands and wellness-focused companies. Clinical studies capabilities, particularly pregnancy exposure registries and clinical trials, provide competitive differentiation in reaching specialized healthcare audiences that traditional advertising platforms struggle to access effectively.

Owned and Operated Properties: Owned and operated properties represent a strategic competitive advantage for Ziff Davis, with 35% of total company revenues derived from advertising on these directly controlled digital assets. This approach provides greater revenue predictability and higher margins compared to third-party platform dependencies, while enabling more sophisticated audience targeting through direct data collection. The company's portfolio includes leading brands across technology, gaming, health, connectivity, and cybersecurity verticals, creating diverse monetization opportunities while reducing reliance on external platform policy changes.

Strategic Acquisitions: Strategic acquisitions continue driving Ziff Davis's expansion strategy, with the company completing three acquisitions during Q2 2025 totaling approximately $11.4 million while integrating previous major acquisitions including CNET. The CNET acquisition, completed in September 2024, particularly contributed to Technology & Shopping segment growth through expanded advertiser relationships and content syndication opportunities. Management maintains a disciplined approach to acquisitions, focusing on businesses that enhance existing platform capabilities, expand addressable markets, or provide technological competitive advantages.

Privacy-Compliant Advertising: Privacy-compliant advertising strategies have become essential for digital media companies as regulatory changes and platform policies eliminate traditional tracking methods, with Ziff Davis positioning itself advantageously through first-party data emphasis and owned property focus. The company's AI-powered audience segmentation operates exclusively on first-party data, avoiding third-party cookie dependencies that face increasing restrictions across major browsers and platforms. This approach enables continued effective targeting while maintaining compliance with evolving privacy regulations including GDPR and emerging state-level privacy laws.

Digital Media Portfolio: Digital media portfolio diversification across technology, shopping, gaming, health, connectivity, and cybersecurity verticals enables Ziff Davis to serve both consumer and business audiences while reducing dependence on any single market segment. The portfolio includes established brands like IGN, CNET, Everyday Health, and Speedtest, each commanding significant audience reach within their respective categories. This diversification strategy provides stability during market volatility while creating cross-promotional opportunities and enabling comprehensive advertiser solutions across multiple touchpoints and audience segments.

Summary

Who: Ziff Davis Inc. (NASDAQ: ZD), a digital media and internet company led by CEO Vivek Shah, reported financial results that exceeded analyst expectations while demonstrating strategic AI deployment across advertising operations.

What: The company delivered 9.8% revenue growth to $352.2 million in Q2 2025, surpassing estimates with adjusted earnings per share of $1.24. Advertising revenues grew 15.5% while the company deployed AI-powered audience segmentation, customer service automation, and content optimization tools across its platform portfolio.

When: Results were announced on August 6, 2025, covering the quarter ended June 30, 2025, with management discussing performance during an August 7, 2025 earnings conference call.

Where: New York-based Ziff Davis operates globally across technology, shopping, gaming, health, connectivity, and cybersecurity verticals, serving both consumer and business audiences through owned and operated digital properties.

Why: The strong performance reflects successful AI integration, strategic acquisitions including CNET, and effective monetization of first-party data assets amid industry-wide shifts toward privacy-compliant advertising strategies and away from third-party tracking dependencies.