Tumblr Follows Instagram - Reveals Plan For More Ads
cagraham writes "Following close on the heels of Instagram's advertising announcement last week, Tumblr has signed an agreement with analytics firm DataSift to provide info to advertisers on user behavior. According to Yahoo! CEO Marissa Mayer, who oversaw the recent $1.1 billion purchase of Tumblr, advertising on the site will become increasingly prevalent throughout 2014. DataSift will provide advertisers with info on the 5.5 billion interactions that occur on the site each day. This makes Tumblr the latest in a slew of recent tech companies to turn towards targeted ads in an attempt to generate revenue."
Twitter is another customer of DataSift.
I'm too old to care about tumblr or Instagram... Or what people share on them.
And I don't get why people find it interesting?
Now get of my lawn. :D
my feels! i can't...
Does this mean we'll start seeing something semi-worthwhile on Radar rather than what American Apparel mistakenly thinks kids should buy or the latest flash-in-the-pan Fox TV drama?
Laughter is the Spackle of the Soul.
The plan is to use it less. So let's call it a wash.
Yahoo getting targetted ads on Tumblr to find out what its users want... then ignoring when users on Flickr try to tell Yahoo what they want.
Laughter is the Spackle of the Soul.
The moment we heard Marissa was buying Tumblr, we all knew death was imminent. Flickr's the test case to prove it.
Laughter is the Spackle of the Soul.
I really, really dislike that model for targeted advertising, and I'm surprised Mayer would sign up for it, rather than using the Google model of keeping the data in house and doing the targeting themselves, so that advertisers never see it. At least that way you only have to keep your eye on one possible misuser of your data (well, plus government agencies who decide to target you for their user data requests).
I suppose making effective use of the data yourself is a lot harder than selling it. But, as I understand it, Google's ability to use the data more effectively than advertisers themselves would is a big part of Google's success. I guess Mayer doesn't think Yahoo! has the know-how to do it as well.
(Disclaimer: I work for Google, which may bias me here. I don't think it does, because I felt the same way before I started working for Google, but it's possible.)
Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
How do you expect it to survive without a revenue model? People won't keep throwing capital at it forever. It needs to become profitable somehow or it'll be going away soon anyway.
They are trying to monetize something that should be almost free. They are injecting ads to make money off something that should cost almost nothing to run. Its parasitic. They arent injecting ads to improve the service, but to leech cash. Its an economic model that should be mocked and derided at every turn.
Good-bye
It requires server hardware, data centre space, storage media, backups, power, bandwidth, system administrator time, and at least some development time for maintenance and bug fixes. Online advertising generates very little revenue because of low conversion from impressions to sales, so it's not like they're going to be making a fortune out of it.
Honestly, how do you expect this to be funded? Would you be prepared to sign up for a paid subscription to read it? That never seems to go over well either. Should the writers pay some fee depending on readership? If it's close enough to free that advertising on it is immoral, why don't you set up a competing service for free?
Why don't you run it then? Hosting that much content, accessed by that many people takes some serious resources. You can't just spend $10 a month on a shared host and call it a day.
Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
It still makes me wonder: how come Google ads just don't irritate me*, and even actually interest me enough to click though on regular basis, but Facebook, Flickr, and everyone else seem to handle advertising in ways that just plain irritate me?
Or that apparently waste advertisers' money because they're flinging ads at people who have utterly no interest in them.
Kind of the same way that I can drop back into Amazon.com after a year or so, and it just feels good and somehow makes it really easy to buy stuff, yet 95% of e-commerce sites suck terribly.
I guess it's that geeky drive to invent something brand new every time instead of just copying (or licencing) what already works well.
*OK, YouTube ads are the exception
Three Squirrels
Here's a little experiment. Y'all do have NoScript running right? rIght? Reset it to defaults. Prepare for an onslaught.
Yahoo home page:
go.com, fwmrm.net, facebook.net,media.net,sitescout.com, yieldmanager.com, interclick.com, yldmgirng.net .
Now I thought Yahoo was bad - but wait, there's more
Did a web search on "New York Times" on yahoo went to their site their site....
adsafeprotected.com, googlesyndication.com, nyt.com, moatads.com, serving-sys.com, nytimes.com
Now on the same page, I'll temporarily allow all those. Now we have more friends running scripts on the same page:
Facebook.net, chartbeat.com, revsci.net, krxd.net, scorecardresearch.com, brightcove.com
So Let's allow all those once again. Huh... another script:
facebook.com
So for just the NYT home page, there are 13 scripts hard at work.
Going through some other pages on the same site, we get typekit.com, stats.com, ticketnetwork.com, insightexpressai.com, buzzfeed.com, doubleclick.net, google-analytics.com, pointroll.com, dl-rms.com, questionmarket.com
Typekit.com, brightcove.com, and ticketnetwork.com are the only ones not specifically looking you over and tracking and or generating what you see by what you clickk on.
But just on one website, we have at least 22 scripts designed to follow you around.
I know a lot of people here use noscript, and this might be old news to them. But newcomers might benefit from what is happening.
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
I wonder occasionally if advertising is the next overinflated bubble fit to burst.
Companies or investors are buying into these vast userbases (which is essentially what is being sold) on the broad assumption that somehow advertising revenue will return the investment. Yet in almost every case this has proved spurious as the trends are so volatile.
Tumblr has never made a profit and yet is worth over $1 billion simply because people believe that advertising is worth that much. It seems to be an act of faith in much the same way as people believed that housing was an investment that always grew, or you couldn't lose buying technology stock in the late 90's.
The foundations of this advertising collossus seem no more secure than those of the financial one, and we all know how well that ended up.
But once they have the "sufficient number of users" how do they make money out of them to pay for provision of the service, and provide some kind of return on investment? Users alone don't represent ROI.
The trouble is, the business model for these startups seems to be:
No-one seems to have come up with a ??? that doesn't involve selling personal data or selling ads. If you try to charge users (whether content producers or consumers) they just move on to the next start-up who's still providing it for free on the back of venture capital.
It requires server hardware, data centre space, storage media, backups, power, bandwidth, system administrator time, and at least some development time for maintenance and bug fixes.
The reality is that the price per user really is ALMOST FREE. But no, its not quite, and will never be completely free.
However, 50 million users paying 50 cents per year? Do you think you could run it for $2 million+ per month? I'm thinking that's likely to be very doable.
If we could get a decent micro-payments infrastructure together we would easily fund these things "ad-free" and "tracking-free". Who out there would REALLY balk at 50 cents a year for that?
That's a very big "if" and no-one's managed to do it so far. Meanwhile they still need money to operate while waiting for this ubiquitous micropayment system to become accepted. It would be nice if you could run things this way, but it doesn't seem to work in real life.
Figure out what tax you're willing to pay for "free" stuff. The human brain is good at ignoring ads.
Hulu makes me watch 6 30-second commercials several times an hour like normal TV. Haven't done Hulu in a year and a half.
If tumblr does anything besides the occasional in-line ad as part of the tumbling scroll wall, forcing me to stop and watch, bye bye.
(-1: Post disagrees with my already-settled worldview) is not a valid mod option.
You can, but it will suck badly. Over time it gets cheaper and cheaper to operate such simple services.
Tomorrow is another day...
Internet became available to the general population instead of being restrained to the scholars and researchers. I say it is not a bad thing. Maybe its time to create a new slashdot without the AC shit.
Tomorrow is another day...
And roads were better too before cars became commonplace.
Before: no dust, no smoke, no risk of getting every bone broken by someone losing control at 120mph, nice wide sidewalks with trees and flowers alongside...
After: choking with dust and smoke, lots of sidewalks two people can barely walk side by side, dead grass and dusty bushes, reckless drivers, drunk drivers...
Yeah. Better before.
Everything was better before! Now git off mah lawn *shakes walking stick*
Actually it would make sense to have the users pay a one-time signup fee of $10-$15. That's over two years of 50 cents a month membership, minus the monthly administration. Should be both possible and a good idea.
"For every complex problem, there is a solution that is simple, neat, and wrong." -- H.L. Mencken (1880-1956) --
Well the superficial changes she's made so far makes Yahoo more and more like Google that I'm beginning to think Mayer is Google's equivalent of Stephen Elop. She's not exactly running Yahoo to the ground the way Elop did but then again Google tend to have more finesse than Microsoft's embrace and extinguish approach to the competition. Google's fine with coop-tition so long as you don't threaten their bread-and-butter ad-nalytics business. So there you have Google happily funding Mozilla's yearly operations while pushing its own Chrome browser and making practically no moves to further eat into Safari's dominance of the Apple browser space.
rule 34
pay a one-time signup fee of $10-$15. That's over two years of 50 cents a month membership
Take Facebook, which is one of the largest and most complicated products out there -- compared to say twitter or tumblr which are a lot simpler.
It's got about $6B in annual revenue, and claims 1.15B monthly active users. FB claims ~25% profit margins. Meaning it needs $4.50/user/year to break even. So yeah, $10-$15 for two year memberships would ABSOLUTELY fund a facebook without facial recognition, profiling, advertising, data mining etc.
I think we could get a FB style platform down to $2/year/user. I believe an awful lot of money is going into data mining and advertising related tech.
(And facebook would be a much simpler product without all that crap so the costs would drop even further.)
And for an instagram or a tumblr or a slashdot, those are FAR simpler products, and I think the annual cost per user drops down to sub 1$ per YEAR for image hosting or discussion forums, down even to 50 cents per user per year. $10 will buy you 2 decades.