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> 1. Advertising rates are far below the author's $10-20 CPM I agree with your analysis, but don't confuse CPM with RPM. Publishers can run 1-20 ad units, so the price you pay as an advertiser (CPM) can be an order of magnitude different from what the publisher receives (RPM). At any rate, I can't fault the author too much. It is an extremely well researched piece that I am glad I read. It would have been slightly be…
Danielle Morrill is a she not a he.
I find it odd that a freemium model was never considered by Tumblr. It has worked for WordPress.com, which is very similar. http://en.support.wordpress.com/upgrades/ http://vip.wordpress.com
I find it odd that a freemium model was never considered by Tumblr. It has worked for WordPress.com, which is very similar. http://en.support.wordpress.com/upgrades/ http://vip.wordpress.com
"According to Forbes Tumblr is targeting $100M revenue in 2013 but, according to sources I spoke to who are familiar with the company, actual Q1 revenue growth was flat and Tumblr is on track to do only $15M in revenue this year." This is unbelievable. I can't believe they're running out of the $85M so soon after raising it, and have basically nothing to show for it. I'd be pretty outraged if I were an investor.
There are a two major faults with the author's analysis which lead me to believe this post should not be relied on. 1. Advertising rates are far below the author's $10-20 CPM estimate for dashboard advertising; $10-20 is for legitimately premium advertising such as high-end audiences, wrapping a website, etc. Dashboard / banner ads will fetch $0.5-3 CPM the way Tumblr is running them. 2. The "valuation" formula of 10…
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Also, mobile-based photosharing was deemed a "major threat" to Facebook's existence and relevance, whereas Tumblr is a much less mobile-centric and is deemed more of an "asset acquisition" and doesn't carry the urgency that Instagram carried for FB.
Exactly this. Buying Instagram was a preventive measure, and it seemed to work out really really well for both parties involved. Buying Tumblr though? It's not so much of a preventive measure. It would be more for the integration potential and userbase than anything else and I think most people are saying Tumblr lacks potential as a standalone service. However, if it could help augment the Yahoo brand then it could p…
Yahoo made it crystal clear that they own Flickr, for example.
Do AOL or Advanced Publication make it clear they own Huffington Post, Tech Crunch, or Reddit? Not really. Sure, it's in black and white on their 'about' pages or via Wikipedia, but they generally had a hands-off approach. Huffpo and Reddit are still growing; Flickr not so much (except in some demographics or countries).
Maybe Yahoo will keep a hands off approach. That also helps create a firewall for Yahoo stockholders who might balk at Tumblr's questionable content.