There were two adjectives Yahoo CEO Marissa Mayer used repeatedly when discussing the advertising opportunity with Tumblr, which her company agreed to buy for $1.1 billion. Those words: "native" and "aspirational."
It's what you would expect. In its short history of monetization, Tumblr has focused on organic ad formats, tentatively rolling out tools to promote organic posts. Yahoo execs, eager to demonstrate the huge price it is paying for Tumblr, are telling investors to expect ad revenue to go big-time in 2014.
But there's an additional opportunity around ad addressability of the constantly logged-in Tumblr audience – across both web and mobile – that is increasingly valuable in this era of decaying cookies. Mayer hinted at this opportunity.
"I don't want to pre-announce anything today," she said. "It is quite clear that the psychographic profiles on Tumblr are different than we have on Yahoo, which enriches the user base."