RogerBLVerhoeven

Hi, I go by Nacho here on tumblr, and I'm sure as many of us on tumblr have noticed, the (hell)site is kinda going downhill. Tumblr was bought by Automattic in fall of 2019, and I am sure they have the best intentions to help tumblr stay afloat. However, I think it's time the community took a more deliberate approach to how tumblr is handled, and hopefully Automattic and @staff will hear us out. I think I have a solid solution to tumblrs money issues, that will help both the site and empower its online communities.

First and foremost, I am not involved with Tumblr or Automattic. I am just a simple blog trying to help out a place that I've been on since 2010, and I would hate to see it die here around 2023.

So, let's get to the root of the problem on tumblr right now. That being money, tumblr is currently costing more money that it produces, as we've seen with its 97% drop in value from 1.1 billion dollar sale to being sold at around 3 million dollars.

So the first thing that must be improved before anything else can be improved on tumblr is how much money they're bringing in a month. I don't think folks on tumblr hate monetization as much as we all collectively say we do, I think the issue is that most advertisers are completely disconnected from the groups they are trying to advertise to on here. Tumblr comprises roughly 65% millennials and 30% gen-z, the two generations that advertisers seem to have the hardest time advertising to for a myriad of reasons. The main one being that they don't fully understand what we want, and sometimes just don't listen to what we are saying.

Lets look at how tumblr makes its money, Tumblr has four main revenue sources,

Ads by sponsored posts

Display ads through video posts

Sponsored Day ads or banner ads

“Premium Themes”

I'll go into depth on all of these and how tumblr could make potential changes to improve their revenue anywhere from three to six months after it implements some or ideally all of these changes.

First tumblr ads and sponsored posts, these changes are going to be contingent on tumblr allowing its users to share, like, and comment on ads much like all other media sites currently allow. Or at least giving advertisers the ability to turn that on or off as a function.

The average tumblr post gets reblogged 14 times, that number increases significantly if the ad is engaging and actually caters to the communities wants and needs. My reasoning for giving users the ability to reblog ads is to increase user engagement while maintaining their current ad vetting process and all of the nonsensical ads that are run on tumblr 90% of the time.

The other reason for allowing tumblr users to share and comment on ads, or have it be an option for advertisers to turn on or off as they'd like, is that the appeal of tumblr is the ability to propagate and obsess over the most niche things (i.e OSHA.)

All the while allowing content that gets shared all over the internet bubble up to the top through the collective hand of the tumblr community. Along with this tumblr has no way for small users to share their own products or services, every single major site has a way for users to advertise their pages or products through the site.

Tumblr is a content machine that creates imagery and memes that get shared all the time across the internet, so the ability to share and curate its own ads is paramount to improving advertising and user engagement on tumblr.

My proposal here is for tumblr to expand its advertising capabilities to all users, while charging a flat rate fee to advertise on tumblr, with additional charges for popular tags or trending tags. Tumblr currently has no self service advertising system much like Facebook does for example. Where facebook charges a daily rate on cost-per-click(CPC) or cost-per-thousand(CPM)

Charging a flat rate fee at a rate of a day, week, month, or quarterly basis with variances in prices based on the lease term and what the advertisers would want to have their ads show up on certain tags. This would open up the doors for small businesses that don't want to advertise on places like facebook, twitter, or google with their complicated CPM and CPC models. Also bringing in more small locally owned businesses with the added value of less competition for ad space on tumblr.

This would also take some of the weight from tumblrs own advertising staff from having to explain a convoluted system to potential advertisers. Creating a simplified model with the the advent of tumblrs own infrastructure able to get a single post to a large variety of users. Where the current ad model uses a “shotgun” method to hit as many people as possible, the tumblr model could encourage advertisers to curate a more personalized and intimate experience that tumblr users would love.

Why not just advertise elsewhere? Tumblr still in fact gets over 300 million views a month as of June 2021 (Statosta), and the added benefit for users to be able to like, share, and interact with ads would allow ads that the community enjoys to be talked about more. Giving advertisers more honest feedback about their ads while increasing their SEO’s.

Also small businesses that can't compete with the vetting processes that are used on other sites, would have a better chance of developing their business and increasing their clientele on tumblr whose core demographics are approximately 60% millennial and 35% gen-z. This core demographic does in fact care about being able to shop at local stores, or even a store across the US that is trying to drum up its own online sales.

These ads could be placed inline on the tumblr dash while moving other sponsored ads to the right of the site on desktop, but making them alternate on mobile between user ads and sponsored ads.

Second, the display ads should be changed to allow tumblr users to share and further interact with ads to generate more user engagement, incentivizing more businesses and companies to build their brand status on tumblr. Tumblr has a good model for creating short diaries or daily vlogs for companies that wish to show off their products on social media. This includes smaller businesses and vlogers that want to post videos or tutorials of themselves on their blog.

Tumblr is a good site for user engagement with a pool of creative potential for anyone wanting to gauge the desire for a particular subject or piece of media, maybe even an upcoming show. Having the ability to share and comment on sponsored ads would also help advertisers by allowing them to get more bang for their buck with a considerable uptick on how users engage with that content.

Third, tumblrs sponsor day ads and banner ads are inexpensive and should be highlighted as a selling point over their competitors. Tumblr 24-hour banner ads are considerably more affordable for businesses when compared to places like twitter with their 200k price point. For the same amount of money on tumblr a business could have their company at the top of the dashboard or app for 8 whole days. Much longer and much better than the competition.

Keeping this price fixed, with a change in the price CPC is still a much more lucrative and attractive selling point than any of the competition on the internet today. I know this might not be exactly what tumblr wants to hear when it is hemorrhaging money right now, but let's look at the cost for these 24 hour daily ads and banner ads. If tumblr hypes up the price point on these ads they could see a significant rise in advertisers considering the lack of competition on tumblr and past success stories of companies who did advertise on tumblr.

At the same time larger advertisers should be encouraged to make engaging ads and blogs on tumblr that will make people want to actually go to their blogs, that then link to an external site or page. Not ads that instantly try to force you to go to some other site, by rewarding or offering special discounts for people who find a special code or something off of the actual blog. Or even for giving the same code to everyone who reblogs a certain post made by the advertiser.

Seems too good to be true? Look at “Asos” back in 2015 when they held a shirt design competition on their tumblr blog. Where they had 900 submissions, four of which were picked, and were sold out of the user generated shirts in 10 hours.

This is not the only case however, but FX ran their own campaign for the show “Man Seeking Woman” where they saw a 2.8% increase in user engagement, 86% increase in their tumblr followers, and they actually saved money through advertising on tumblr.

All this leads me to believe that tumblr actually was and continues to be the best place for brands, small businesses, and artists to develop themselves through genuine user engagement.

Finally, the “premium themes” that are available on tumblr that allow for unparalleled customizations that you hardly find elsewhere on the internet anymore. Tumblrs ability to take a variety of media sources, as well as having an unparalleled level of customization, user interconnectivity, and a vibrant artistic scene shows that it is ripe with potential.

Tumblr could still use its post+ feature, but in the same way that Discord uses its subscription service. For cosmetic changes that can be added modularly to the site or individual blogs for an additional monthly fee. In conjunction with partnering with community artists to bring small cosmetic additions to individual blogs, while paying the content creator and tumblr taking a small portion of the profits over a certain amount.

To be completely honest this is probably the hardest portion of this entire pitch to make changes to in a shorter period of time, considering all the testing and “under the hood” changes that must be made. However, I think that implementing this as well as the other changes I have proposed will bring back more foot traffic to tumblr as well as increase its revenue and profitability.

In closing, I am simply working with whatever information I was able to find online and a good amount of time invested on my part to do this. I think tumblr has a ton of potential still to return as a force for good for the communities that exist and want a change from what the internet has become. Time and time again when any company or public entity dies it was because it did not change and refused to adapt and innovate, oftentimes not at the hands of the people working everyday to keep the site running. Instead at the hands of people who dont see the value in what has fallen in their laps.

If you agree and think this is something that can be done, please reblog this post and follow me for more updates. If I don't hear back or this does not gain any traction by the end of the year, then tumblr can go to its inevitable end. I will be here sinking with the ship.