Taking a Tumble into Advertising
Mobile advertising and commerce seems to be the unstoppable force in marketing right now, and the likes of Facebook, Twitter and other social services are all planting adverts in your mobile feeds to try and tap into that fat advertising dollar pipe.
Joining in the feast now comes Tumblr, which will be dropping up to four adverts into users' feeds. That seems fairly sedate compared to some, but as the need for revenue increases (and Tumblr is yet to turn a profit) don't be surprised to see that rise. The news was mentioned in a brief official Tumblr post.
With Tumblr's user base also on the rise (now over 104 million blogs), the company will need to keep increasing its revenue generation to keep the servers and lights running for the huge amounts of data being stored and sent across the net.
Maintaining Ad Focus
The adverts, with initial product placements to be provided by the likes of ABC, Warner and Pepsi, should be pretty much inline with user interests and will appear in the right places, to minimize any likely user disruption.
However, for those who enjoy the clean design and the endless stream of cool art, pictures, insightful writing and so on, there's bound to be an element of outrage and push back. Once those few have calmed down or gone away, normal service (and growth) should resume with Tumblr seeing four times the number of mobile users in the last six months.
With sizable investment from a number of venture firms, at some point there will be pressure for the company to hit the stock market, or aim for a buy out, something that will be helped by good ad revenues.
The most recent version of the iOS app came out in March and features new camera tricks, posting from the app, and improved linking. While Twitter focuses on music and probably other areas, perhaps Tumblr's themed interests will help it to grow faster.