Yahoo! appears to be in talks with Facebook to form an advertising alliance with its blogging site Tumblr, according to reports. As part of the deal, Facebook would sell ads within the Tumblr mobile app and share revenues with Yahoo!
Yahoo! plans to partner with Facebook on mobile Tumblr ads
As of right now, Tumblr ad performance is weak with just 10%-15% of ad inventory being sold. A stronger focus on the site to drive revenues may indeed be a good move to boost the site.
Whilst Tumblr has been busy trying to increase its sponsored posts and added a direct sales team to manage ads, it comes nowhere close to the success of Facebook, which generates 80% of its ad revenue from mobile ads.
A deal with social media expert Facebook could help propel Tumblr’s mobile app to attract new users and advertisers alike.
Forbes argues that “until its direct sales efforts bear more fruit, the deal with Facebook should help increase its advertising revenues.”