Mobile advertising agencies have a new app to focus their attentions on thanks to a new initiative by the blog network Tumblr.
The rise of mobile
It’s only a few months since six-year-old Tumblr started letting advertisers pay for optimal placement but, according to its VP Derek Gottfrid, the number of people using the network’s mobile product has soared by 400 per cent in the last six months. All of a sudden, mobile phones advertising starts to look enticing. That’s why the network has now opened the doors to mobile advertising courtesy of a new app.
The new product is expected to help make Tumblr its first annual profit this year once advertisers sign up to debut it. The network’s head of sales, Lee Brown, claims that the average advertising purchase has now reached “just under six figures.”
The New York-based startup has enjoyed impressive success over its short life and now plays host to around 100 million blogs, all of which can be themed. The range spans the cerebrally artistic, like displays of a photographer’s best work, to distinctly quirky, like the dog which can balance food on its head. Users can share content from their own blogs or “heart” another blog (on Facebook, you’d “like” it).
Breaking with ad tradition
Tumblr’s CEO David Karp isn’t especially fond of traditional online display and search advertising.
He thinks he can persuade customers to pay to make their own posts stand out, pushing Tumblr toward profitability in the process.
With Tumblr’s 16 billion monthly page views, Gottfrid is adamant that it’s “not going to get into the regular ad network.” Companies won’t be allowed to buy display space; they’ll pay to get their blogs viewed by more users instead.
As Brown puts it:
“We’re not bringing them a template or format to complete. We’re giving them a canvas. That takes a lot of time and a lot of thought.”
He concedes that this style of advertising is untraditional – but it hasn’t put companies off. Promoted posts have been sold to Adidas AG (ADS), Christian Dior SA (CDI), Lions Group Entertainment Corp. (LGF) and Target Corp. (TGT).
And with Gartner Inc. predicting global mobile advertising spend to leap from last year’s $9.8 billion to $11.4 billion in 2013 and $24.6 billion by 2016, there’s room for innovation.