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The $3B+ Exit Tumblr Could Have Had

daniellemorrill.com

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Re: The $3B+ Exit Tumblr Could Have Had

#61

Post by 0majors »

Having worked in both media and creative agencies I can't agree with the potential revenue analysis in the article.

User Generated Content, as many here have pointed out, is not valuable and often is indeed toxic for big brands. The young audience surfing cat pictures is also not valuable. What products will the advertisers sell to them? Games, some fashion, fizzy drinks but then what?

Lastly, non targeted audience is also less valuable for obvious reasons. This is why they are looking at ~ $0.75 CPM but LinkedIn campaigns start at $1.50 and go only up from there.

Successfully monetizing anonymous teenagers wasting time on the internet is something nobody has managed to do so far. Ask Digg.com

Re: The $3B+ Exit Tumblr Could Have Had

#62

Post by Alphasite_ »

jacquesm wrote: post #60
mratzloff wrote: post #37

Earlier quoted context omitted.

They have 175 employees, so it's not too surprising they blew through $85 million in 8 months.

85000000/175=485714, that's actually quite surprising unless the averge flickr employee grosses more than 50 K per month. $85 million is a lot of cash.

Shouldn't that be /8? So around 6k per month.

Re: The $3B+ Exit Tumblr Could Have Had

#63

Post by jpalomaki »

Would it even be feasible to monetize Tumblr by running ads on massive scale? I would assume one reason for its popularity is the lack of ads. This has for example allowed quite relaxed page templates, you can make the site look whatever you want. With mandatory ads things would be more difficult.

Re: The $3B+ Exit Tumblr Could Have Had

#64

Post by programminggeek »

To be honest, businesses that are good at making money will always be valued higher (relatively speaking) than businesses that are just good at getting users.

Getting someone to use your free product is a different skill than getting advertisers to put their ads on your product or getting people to pay for your product.

Making money is a skill and if your company doesn't figure out how to do that successfully, you shouldn't expect to sell for a large amount of money.

At the end of the day, businesses are about making money, you know getting customers to pay you. They aren't about getting people to use your free product.

Re: The $3B+ Exit Tumblr Could Have Had

#66

Post by standby »

jacquesm wrote: post #59
azifali wrote: post #53

The Pricing that Danielle has quoted - $10-15 RPM is extremely high. First - Tumblr is not a "Premium" Property. NBCNews.com and Business week is. Second - Porn which is plentiful on Tumblr is the opposite of premium. It tends to be cheap and not easily monetizable. Third - A better metric to use would be CPM. Un-targeted ads deliver Targeted ads such as search / display targeting, retargeting typically deliver betwe…

Porn is not just 'not monetizable', it is toxic to regular advertisers. You really don't want that ad for the new car next to grandma in her see-through... bad associations.

But that is not how the advertising works on Tumblr. Read this for a clearer insight/explanation: http://allthingsd.com/20130518/why-yahoo-doesnt-think-tumblr...

Re: The $3B+ Exit Tumblr Could Have Had

#67

Post by inthewoods »

jacquesm wrote: post #60
mratzloff wrote: post #37

Earlier quoted context omitted.

They have 175 employees, so it's not too surprising they blew through $85 million in 8 months.

85000000/175=485714, that's actually quite surprising unless the averge flickr employee grosses more than 50 K per month. $85 million is a lot of cash.

I imagine their infrastructure is quite a bill. Supporting that kind of traffic must be expensive - if you figure $1.5m a month, that's like $18m a year right there.

Re: The $3B+ Exit Tumblr Could Have Had

#69

Post by [deleted] »

jacquesm wrote: post #60
mratzloff wrote: post #37

Earlier quoted context omitted.

They have 175 employees, so it's not too surprising they blew through $85 million in 8 months.

85000000/175=485714, that's actually quite surprising unless the averge flickr employee grosses more than 50 K per month. $85 million is a lot of cash.

[deleted]

Re: The $3B+ Exit Tumblr Could Have Had

#70

Post by mratzloff »

Alphasite_ wrote: post #62
jacquesm wrote: post #60

Earlier quoted context omitted.

85000000/175=485714, that's actually quite surprising unless the averge flickr employee grosses more than 50 K per month. $85 million is a lot of cash.

Shouldn't that be /8? So around 6k per month.

You're off by one decimal place.
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