Yahoo to use Tumblr for new advertising platform
In a move that could potentially anger Tumblr's 165m strong user-base, Yahoo CEO Marissa Miller has announced that the company intends to use the platform to launch it's new advertising strategy.
At CES on Tuesday, CEO of Yahoo Marissa Mayer announced the launch of 'Yahoo Advertising', a "united platform" to simplify the sale and purchase of Yahoo ads across all Yahoo properties - including Tumblr.
Tumblr's sponsored posts will fall under the umbrella of 'Yahoo Advertising'.
Advertisers will now be able to buy ads on Tumblr by gender and location, which was previously unavailable. Advertisers will have to pay only when their ad is interacted with by the user - through likes, follows, reblogs and click-through.
Yahoo bought Tumblr in 2013 and released a press release promising "not to screw it up".
"Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO. The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators."
Yahoo paid $1.1 billion (in cash) for the popular microblogging website in 2013 as part of a series of acquisitions to boost Yahoo, however, advertising revenue has continued to decline.
Tumblr boasts over165 million blogs, 50 billion blog posts, 300 million monthly unique users and over 120,000 new signups daily.