Tumblr is on its way to profitability this year, according to a Bloomberg report, due in large part to the blog platform’s plans to introduce mobile advertising before the end of the second quarter.
The mobile ad platform will allow advertisers pay to make their Tumblr posts and blogs more prominent for smartphone users, gaining access to a bigger mobile audience, Bloomberg writes, citing vice-president Derek Gottfrid. The ad offering (which seems reminiscent of Twitter’s Promoted Tweets) has completed internal tests and is now ready for some brave advertisers to help launch it, Gottfrid added.
Tumblr’s mobile audience has quadrupled over the last six months, mirroring the huge shift towards mobile usage experienced by other social networks, including Facebook and Twitter. In Tumblr’s case, the number of mobile users and desktop users are now roughly equal, which explains the company’s push to introduce a mobile ad solution.
Tumblr currently hosts around 100 million blogs, according to the company, which generate over 16 billion page views per month. Bloomberg also quoted Tumblr’s head of sales, Lee Brown, as saying the average ad buy on Tumblr is “just under six figures.” A range of big advertisers have already started using its promoted posts on the Web, including Target, Adidas, Lions Gate, and Christian Dior.
Of course, Tumblr isn’t alone in seeking to cash in on the mobile-social bonanza. According to a recent forecast from eMarketer, Facebook is on course to take in $339 million in mobile ad revenues this year, jumping to $851 million in 2013 and $1.2 billion by 2014.