Yahoo Finally Reveals How Much Money Tumblr Can Bring In Ads

Predicts $100 million

Yahoo CEO Marissa Mayer fends of Wall Street critics. Photo: Getty Images

We finally have a look at Tumblr’s ad sales: $100 million in 2015, according to Yahoo CEO Marissa Mayer, under pressure to show some results from her $1 billion acquisition.

Mayer gave some new insights into her strategy today after announcing third-quarter results, and she gave a defense of her leadership at the company over the past two years. The CEO has faced increased investor criticism as her turnaround efforts struggled to bear fruit.

Mayer had to respond to Wall Street’s concerns that she is spending too much on pet acquisitions like Tumblr and failing to curb expenses. In a call with analysts today, Mayer gave a breakdown of her achievements: “We’ve come really far, really fast,” she said.

She also revealed two core details of Yahoo’s strategy. She said native advertising, the focus of the company in its mobile transition, would be a $250 million business. And the Tumblr forecast of $100 million was the first indication of the blogging platform’s ad business.

“More than 260 of the world’s top brands have a Tumblr presence,” Mayer said.

Still third-quarter results showed some of the same strains that have weighed on the company. The revenue from display ads, $447 million, was down 5 percent year over year.

Yahoo was able to increase overall revenue by 1 percent by squeezing 24 percent more ads into its properties. Meanwhile, ad prices were down 24 percent year over year.

Search, where Yahoo has a deal with Microsoft’s Bing, was a bright spot—price-per-click was up 17 percent leading to a 4 percent rise in revenue.

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