Tumblr's acquisition by Yahoo looks like an investment not in search advertising but in content
Speaking at Monaco Media Forum in November, Karp agreed that internet ads "suck": "One of the things I've found most disheartening on the internet today is it's all been defined and relegated to these little blue links. The advertising industry as a whole is an incredibly creative and capable industry… They've got these Mad Men aspirations and right now they're all being squeezed in to these hyper-optimised, hyper-targeted models where you're basically trying to deliver the little blue link at the exact right moment rather than trying to tell stories that make people want to become customers."
To that end, Tumblr has introduced its own tools to let brands tell and promote their stories in a different way – Radar and Spotlight are how marketers can buy links to their blogs in curated sections, while Highlighted Posts and Pinned Posts let small-scale creators pay just a few dollars to gain more prominence in readers' dashboards.
These tools ride the native advertising wave ("content marketing", "branded content" or "sponsored content", depending on who you speak to) on which publishers and platforms are now helping marketers to communicate using language that is indistinct from core content, overcoming readers' increasing aversion to invasive banners and paid links. Thanks to them, Tumblr's revenue has grown fast from a low base, but the effort can now be taken to the next level.
