More Ads Thumblized

"What makes Tumblr such an attractive acquisition is it has so much credibility among this audience that Yahoo and others are seeking -- this 18-to-24 sweet spot," said Ming Linsley, MEC's senior director of social media. "The concern everyone has is whether or not Tumblr will lose its credibility if it's acquired by Yahoo."

Tumblr sales chief Lee Brown already said last year that's working with advertisers who want reach and frequency — mass exposure, in plain English — on Tumblr. "[Some buyers] just want to buy units for reach and frequency. I’m working through that with them now," he told Adweek.

We noted earlier that Tumbr has made half a dozen significant moves — including adding mobile ads — in recent months to make itself attractive to advertisers, and the company believes it will be profitable soon. It had only $13 million in revenue last year.

And then, of course, there is Wall Street. This is a big acquisition for Yahoo. Shareholders will want to see a return on the investment. There will be intense pressure on Mayer and Karp to deliver those numbers. As Zachary Reiss-Davis, an analyst at Forrester Research, told Bloomberg:

“They have to balance keeping those users actively using Tumblr, while at the same time adding advertising and putting monetization around it,” he said. “Those are very difficult tasks to balance against each other.”

Difficult tasks, indeed. But note that everyone — Karp's new boss, Karps' sales chief, advertisers, and Wall Street — are all agreed on the same thing.

There will be a lot more advertising on Tumblr.

SEE ALSO:  Why Yahoo Paid $1.1 Billion For Tumblr Even Though It Only Has $13 Million In Revenue

Read more: http://www.businessinsider.com/yahoo-intends-to-stuff-tumblr-full-of-ads-2013-5#ixzz2zOJrfXbh

Creadit By :  Jim Edwards

Browse More Articles

Tweet

Written by Unknown

We are Creative Blogger Theme Wavers which provides user friendly, effective and easy to use themes. Each support has free and providing HD support screen casting.