‘Mayer confirms Yahoo’s selling Tumblr ads through Facebook’s ad net’ – Marketing Land
Tim Peterson says, “Tumblr is in a bad way. Three years after Yahoo bought the company in a $1.1 billion deal, the social network is having such a hard time getting brands to buy its ads that it’s started to lean on its parent company’s traditional banner ads and one of its would-be rivals’ ad networks to help it make money.
“Towards the end of” the second quarter of 2016, Yahoo began selling Tumblr ads through Facebook’s Audience Network ad network, Yahoo CEO Marissa Mayer said during the company’s earnings call on Monday. That appears to have been the first time Yahoo has confirmed the ad deal between Facebook and Tumblr, a deal that The Information reported in March 2016 was under consideration as Tumblr struggled to sell more than 10 percent to 15 percent of its available ad slots.
“Our supply [on Tumblr], because it’s growing so quickly, is outpacing demand and is causing this monetization shortfall,” Mayer said on Monday.
Mayer made it seem like Tumblr’s problem isn’t that advertisers aren’t willing to buy its ads; they just don’t want to pay all that much for them. “We think that the ad load in Tumblr is appropriate. It’s really about bringing the demand to bear there,” she said”.
Comments are closed.