What is Tumblr

A tumblelog is a variation of a blog, that favors short-form, mixed-media posts over the longer editorial posts frequently associated with blogging. Common post formats found on tumblelogs include links, photos, quotes, dialogues, and video. Unlike blogs, this format is frequently used to share the author’s creations, discoveries, or experiences without providing a commentary. – Wikipedia

Tumblr’s Monetization Strategy

Selling Tumblr themes.

Highlighting and pinning posts.  Example

Spotlight page is Tumblrs most successful revenue generating feature.

Preferred Analytics lets companies track the sharing of individual posts, track popular content, blogs and topics, engagement levels and trends, and influential contributors and curators. Example: Adidas

 In 2012, Tumblrs revenue was 13 million dollars.

Tumblr is targeting for 200 million dollars in revenue by the end of 2013 with help from Yahoo. 

RISKS

-Limited engagement
          -Only reblogging and notes are possible
          -Comments require an add-on (i.e.Disqus)
-NSFW Content
          -Can’t exclude your page from showing up amidst less tasteful content
-Lack of limits on post size can lead to undesirable masses of content
-Poor organization can dissuade readers