When Will Tumblr Make Money for Yahoo? CEO Answers

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May 13 (Bloomberg) –- Tumblr Founder and CEO David Karp discusses his company’s business model and mobile strategy. He speaks on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

More people keep dumping on tumblr.

They ask about the amount of money that yahoo!

Paid for your company and are also saying that tumblr is a platform that does not matter anymore.

Why is this happening?

We're not hearing things at the level you're describing.

In the grand world, where we are, building a base of advertisers that care about tumblr, they do care about tumblr.

We have doubled our sales in the last four months.

We are about about -- at about 150 spending advertisers on platform.

Most of those are coming out of the top 350 advertisers in the world.

At&t, apple, unilever, png.

This is an hat product that stands apart from the rest of the world.

It is focused on the moment, focused on social interaction, where we are offering a platform for those brand advertisers to do that great, creative brand advertising.

The kind of stuff that people get into the ad industry to do.

The criticism is that tom wheeler -- tumblr still needs to make money for yahoo!. when is the business model coming?

It has been growing for the asked year and a half.

Most have joined in the last six months.

How much money are you making now versus a year ago?

We will be having a report shortly.

It is tied into yahoo!'s earning future.

We are not even 10 months into our time with yahoo!. we are excited about how the businesses scaling.

We are a little ways ways from talking about the contribution to yahoo!. how does you go from being the creator and the ceo of that company to the guy you are today, who sounds enthusiastic about advertising?

We launched our ad business at the time of the acquisition.

That was a big part of the conversation on yahoo!. they are inherently an advertising company.

In marissa's time in the company, she has -- helped line up with the ad platform.

Yahoo!

Is driving, not the creative tools.

Tomumblr still -- all of the ad tech is powered by yahoo!. what is the hardest part about selling tublmblr to advertisers?

You protect the privacy of users.

How hard is it to get advertisers on board without that?

It is a different story than what everybody else in this industry is selling them on.

So much of this industry is about bringing your data scientist, focus on hypertargeting the little blue link and making sure you get it in front of this person and this person who will be in the market for a car.

The message to the advertising community about tumblr and what we have seen brands start to do and get right is what more of what you're used to on television or in print.

It hits you for years and years before you are even old enough to buy a car.

It inspires you to want a coupe and drive around eight curvy mountain road.

-- around a curvy mountain road.

Advertisers get into the business for it.

They want to make the 32nd spot that changes our view of the world.

You do not have room to do that in -- you have a lot of the capabilities built in.

You have the analytics that are starting to roll out.

What you have on tumblr that you do not have anywhere else as a canvas.

You have a platform to be expressive, to tell a story that inspires people to drive your car, to wear your clothes.

Get your people to aspire to where they can afford to wear your stuff around.

Ifor you can save up to buy your first iphone.

That is why you see advertisers like apples and ford's making the grade brand advertising.

Marissa mayer got a lot excited when she said yahoo!

Had 500 mobile engineers.

How many of those are at tumblr.

We are our own team in new york.

At most of those are in our headquarters.

We are still a holy owned subsidiary -- wholyey owned subsidiary.

Talking about mobile, marissa mayer said that yahoo!

Had missed the boat on mobile.

What are your expectations for tumblr on mobile?

Mobile is growing at the same clip that everybody else is seeing.

The stuff that we are excited about in the mobile world is two full.

The time spent on tumbler, when we come way far ahead of everybody else, one and half times spend is the average.

Every network we come out way ahead in time spent in how people use it.

It is something they use much more like they use their tv, if you pull it out in the moments where you do not want to check your e-mail or you don't want to return your mom's phone call, you want to turn off the tv and veg out and relax and be entertained for a moment, that is how people use tumblr.

In the mobile world, nobody has session times like that.

We are still getting session times in three to seven minutes.

That time spent on mobile is exciting to us.

We are developing and you will see a whole lot of our biggest innovations happening this year.

It is in mobile creative technology.

The things we all have in our pocket.

Unbelievably creative horsepower.

They can make some beautiful slow-motion video.

You can edit the stuff you create.

With developments like mobile customization, tumbler is the first platform to customize how you look on the smallscreen.

What is the secret of keeping an indie mindset or personality in a company like yahoo!? we are not inside yahoo!

Today.

This is a big part of the promise from orissa and her team.

They believe in the path that we were on and they believe in the platform we were building.

We have kept our office.

We invest in the team.

Our team has gone from 150 to 250. we have partnered together on a few projects.

We are working together on how we build content, so you will stay a lot of -- you will see a lot of stuff they are doing with katie couric.

We are working together on a host of projects.

We are on our own path.

We are ultimately in control of our own destiny.

You make a passionate case

This text has been automatically generated. It may not be 100% accurate.

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