Tech Crunch: “The new revenue model we recently put in place is built around creative brand advertising, which is something that Facebook and Google don’t support,” Karp said. Rather than a/b testing a blue link to try to find the most effective direct response ad, Karp wants brands to use Tumblr to tell stories that create intent on the part of consumers — which is the type of advertising that they want to see anyway.
Also, while much of the available ad space being sold by other Internet companies goes to big brands, Karp sees an opportunity to make inventory available to individual users, who could use the space more effectively, and who might not annoy their friends in the way that brand advertising might.
“We want to make some real estate available not just to big brands, but to carve it out for people that are already a part of the network,” Karp said. “It’s problematic when that American Express post shows up in your feed, but it’s different when it’s one of your friends.”
In addition to talking about the new revenue products, Karp described the organizational transition which recently took place and enabled long-time Tumblr president John Maloney to resign. Tumblr has grown from 15 employees to more than 105 since the beginning of last year. A lot of those hires were made to add senior executives to the staff who could oversee various different parts of the organization. Not only did that allow Maloney to step down, but it also meant that Karp hasn’t really written any code over the last six months.