1 min

Tumblr - October 2014

http://blogs.wsj.com/digits/2014/10/21/yahoo-tumblr-to-make-over-100-million-in-revenue-next-year/

Tumblr is expected to generate more than $100 million in revenue in 2015 thanks to a growing user base and a successful introduction of sponsored advertising, Yahoo Chief Executive Marissa Mayer said Tuesday.

Mayer also said Tumblr, the blogging platform that Yahoo acquired for more than $1 billion in May 2013, will achieve “positive Ebitda” — a measure of profitability that strips out taxes, depreciation and other measures.

Mayer said that in the past 15 months, Tumblr’s audience has grown 40% to 420 million users, while the number of registered blogs nearly doubled to 206 million. Mayer said this number includes logged-in users and people who land on one of its blogs.

More importantly, she said, people are hanging around on the platform for longer stretches of time – the amount of time spent went from 22 minutes to 28 minutes for something called dashboard sessions. “Tumblr is gaining share, we believe,” she said

With the jump in users and engagement, Yahoo is now cashing in with sponsored advertising. Yahoo has been pitching Tumblr to marketers as a creative way to pitch to millennials. Marketers like the format, she said on the call Tuesday.

Interestingly, the story did not mention mobile activity on Tumblr, and whether that has led to more engagement with the service.

#blogging - #tumblr - #advertising - #business

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