Dive Brief:
- Tumblr is set to launch a new advertising program across its blogs today, according to a Tumblr post.
- The ad program will automitically enable ads across all Tumblr blogs, but blog owners can opt-out of enabling ads if they choose to.
- In return for running ads on their blogs, publishers will get a cut of the ad revenue, although the finer details of the partner program are still being worked out.
Dive Insight:
Parent company Yahoo may have just agreed to a deal with Verizon, but Tumblr is active in seeking new revenue streams. Tumblr has been looking to reboot its advertising business since struggling with a lack of support after being acquired by Yahoo in May 2013.
According to The Information, Tumblr has been only selling 10-15% of its available ad inventory. Yahoo recently admitted to using Facebook’s Audience Network to sell mobile ads on Tumblr. Tumblr had been struggling to sell its own ads, with inventory outpacing demand.
The new ad program may not help drive demand, but it will create more inventory. And because of the revenue-sharing agreement with users, it could help drive publishers to be more active on their blogs, ultimately resulting in higher user engagement. All Tumblr blogs will automatically opted into the new program, while users who don’t want to participate will have to go into settings to disable the feature. However, Tumblr suggests that blogs will need to register with its ad partner program in order to receive revenue from ads.
"We’re still working out the details of the partner program but as soon as we have details to share, we’ll make announcements right here on trusty Staff," the post says. "Just so you know: You won’t be able to make money until you register for the program—which is coming soon."