Being one of the top blog networks with an impressive user base, Tumblr on monday has announced that it is now introducing ads on its Iphone and Android apps. The company while understanding the dominating mobile advertising market has rolled out its mobile ads which will look like regular posts on a user’s blog network, also giving an edge to the company to monetize for the first time, since its inception.
The step would help Tumblr to increase its profitability as the mobile advertising market is continuously growing on an impressive pace, which is expected to increase by 65% while making the total market worth around $2.1billion in the U.S. alone this year, mentioned in a report. The first few participated companies whose ads will be the first to appear are ABC,Warner Brothers, GE and Pepsi.
Users will only see a maximum of four ads per day. These ads will be differentiated with a mark of animated dollar sign. Apart from that, these ads will be soon migrated to desktop computers as well. The ads will be posted in the form of blog posts – rather than traditional banner ads – that viewers can even ‘like’ or ‘reblog’.
Mentioned by Lee Brown, global head of sales at Tumblr, in an interview last month, the company is expecting to turn a profit for the first time this year, with the introduction of ads to its platform. Not only that, Tumblr also tested this feature internally before looking for advertisers to sign up on its network.
In its career, Tumblr has raised a series of funding. In 2011, at a valuation of $800 million, it raised $85 million from a number of investors. The funding round was led by Greylock Partners and Insight Venture Partners. In 2010, it raised $ 30 million from Sequoia Capital, Union Square Ventures and Spark Capital. Prior to that, it raised $4.5 million in 2008 in series B round from Union Ventures and Spark Capital, same investors that put in $750,000 in its first round.
Founded in 2007, the New York based company Tumblr accounts a total of 104 Million Blogs and 48.8 Billion posts on its network. With having such a huge user base, it makes Tumblr a destination for advertisers to publicize their products which will also help the company to monetize its overall growth.