Tumblr Tries to Spin Yahoo’s Advertisement Revenue Right ‘Round!

Tumblr Tries to Spin Yahoo’s Advertisement Revenue Right ‘Round!So today, I rode a roller coaster where you’re in a mine car and you ride backwards. That’s probably how Yahoo wishes they were feeling right now, at least with their revenue from online advertisements. There is still hope for Yahoo however. Their blog platform, Tumblr, has gained much popularity, and is attempting to bring an increase in business ad revenues.

How much popularity has Tumblr gained? According to eMarketer, “Tumblr continues to gain popularity in the US, with the number of users increasing 46.2% in 2013, totaling 13.7 million internet users.” They predict that,” the Yahoo-owned social blogging platform will increase by nearly another 25% in 2014, according to our estimates, totaling more than 17.1 million internet users this year.”

So can Tumblr help fix Yahoo’s advertising revenue? In its current state it will not. In fact, it will still continue to go backwards. eMarkerter elaborates by explaining, “Yahoo’s display ad revenues overall decreased 7% in Q2 2014, according to the company, and eMarketer estimates that its share of US digital display ad market will fall to 5.8% this year, down significantly from 9.2% share in 2012.”

Is there a glimmer of hope for Yahoo? Well the one true norm is bloggers don’t write just one blog. Thus the likeliness of one’s blog getting viewed, unless set to private, is greater. Yahoo quotes to eMarketer saying, “the average sponsored post is reblogged 10,000 times, so if the company is able to work with more of Tumblr’s most influential bloggers to host ads, the platform could become a boon for ad revenues, especially on mobile.” So if the ads increased on Yahoo, then yes there would be a glimmer of hope.