Tumblr Monetization Frustrating Yahoo

Tumblr Monetization Frustrating Yahoo
Image via CrunchBase

New York, New York–Recently acquired Tumblr brings a coveted demographic to the table for Yahoo but that does not come without a set of challenges. The fastest growing blogging platform is rapidly gaining attention from 18-34 year olds, who have the time, but not money, to spend online.

Tumblr’s largest audience falls under 24 years of age which places them in a lower-income bracket than its competitors’ users. This leaves potential advertisers walking a fine line with users who are attracted to the site’s current noncommercial feel.

The Tumblr Monetization Goal

In May of 2013, Yahoo purchased Tumblr for a reported $1.1 billion in hopes that the investment will pay off once users are enticed to open their tightly held wallets. Analysts feel this is possible if the advertisements are presented in an unobtrusive way to bloggers who are loyal to Tumblr but not Yahoo. Many Tumblr users were unsettled by the announcement that the site would be moving toward paid advertising after the agreement with Yahoo was struck. A petitioning campaign was quickly launched by bloggers who do not embrace the change. Nearly 170,000 signatures were gathered to protest the unwelcome ads.

The potential for companies to reach their consumers is there. Tumblr’s latest usage figures have these advertisers sitting up and taking notice. Numbers in excess of 108.2 million blogs and more than 50.8 billion posts overall leave executives looking to find avenues to tap into this fickle market. They hope to find a way convince young users to spend while not alienating them from the currently uncluttered setting in which they feel comfortable.

Yahoo Looking to Strike a Balance

Since its launch in February of 2007, the site has boasted a user sharing increase of 1299.5%. The service’s visitor base leaves new owner Yahoo and investors hungry to capitalize on Tumblr’s inevitable profitability so long as this can be accomplished in a smoothly executed transition to paid advertising. They believe once the right market is found and the initial resistance to change is overcome the dollars will flow. It is believed that as long as affordable products and not luxury items are offered, both current and future users can be encouraged to spend in this social media arena.

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