Contemplating The Tumblr Success Story In Less Than 250 Words

Tumblr-logoVery much like its closest competitor WordPress, Tumblr has quite a serious problem in its hands. This was mentioned in an earlier post heralding their greatest success to date, that being a huge funding round from a bunch of people. To inform the reader’s memory:

For this reason it has become the recipient of an $85 million Series E round from a bunch of high profile investors including Richard Branson (what?), Spark Capital, Greylock Partners, Chernin Group, Insight Venture Partners, Sequoia Capital, and old timers Union Square.

The problem is, for a blogging platform whose paltry 13 million users generate page views in the billions, the revenue flow is a mere trickle.

Never mind that, reasons some of its latest investors, as the revenue conundrum can be solved in the coming months. Is this intentional shortsightedness? Maybe it’s faith, underpinned by huge numbers. The latter sounds more reasonable, so let it suffice for now.

For those wondering why Tumblr hasn’t gone down the easy route and gotten advertising on its pages, why it’s because ads of that sort run against the Tumblr ethos.

So the trick would be for Tumblr to conceive its own advertising product, whatever form they might eventually take.

In the meantime, Tumblr and the team behind can buckle their seatbelts for the teeth chattering ascent to mega-success.

Via: Betabeat