Tumblr Video Ads

Tumblr is launching video ads today, a first for the blog network.

The new ad units, called “sponsored video posts,” arrive just a week after Yahoo CEO Marissa Mayer announced during the company’s third-quarter earnings presentation that Tumblr is projected to generate $100 million in 2015.

Tumblr

That number turned heads, considering the blog network had rarely been mentioned since its acquisition by Yahoo for $1 billion last year. Tumblr made only $13 million in 2012.

Tumblr’s new video ads launch with 11 partners including CW, Universal, Lexus, Hulu and JCPenney. The ads will be on a “cost per view” model; the site has taken a growing place in Yahoo’s ad business, recently been tasked with hosting its native ads.

Online video advertising is a lucrative field, commanding far higher prices than traditional digital display ads. High costs combined with rapid growth have led to an influx of online video competitors, most notably Facebook.

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