nav
Business Operations Business Models

How Does Tumblr Make Money (Business and Revenue Model)

The Tumblr business model

Tumblr logo
Here’s what you should know:
  • What is Tumblr, and how does Tumblr work?
  • How does Tumblr make money?
  • Advertising Revenue (Tumblr Ads)
  • Tumblr Post+ (Subscription Revenue)
  • Selling Themes
  • Tumblr subsidiaries, acquisitions, and exits
  • Tumblr profit and revenue
  • What is the Tumblr business and revenue model?
  • Tumblr funding, net worth, and valuation

How does Tumblr make money and how is it free to use? Here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Tumblr business and revenue model, how much Tumblr makes per year, and how Tumblr works.

What is Tumblr, and how does Tumblr work?

Tumblr is a social networking platform that allows users to post various forms of media and other content in a blog type format.

Founded in 2007 by David Karp, Tumblr went on to later get acquired by Automattic for a reported $3 million on August 12, 2019.

Today, Tumblr has more than 500 million Tumblr blogs live on its platform that attracts more than 300 million unique visitors per month to its website.

So, how does Tumblr work? To use Tumblr, users can simply start by first downloading their mobile app from the Apple App Store or Google Play store; or by visiting their website and signing up for an account.

Once an account is created, users can begin to customize their blog with a theme, make Tumblr posts on their blog, follow other users’ blogs, and more.

Some of Tumblr’s competitors include Instagram, Vsco, Medium, and other visual blogging platforms

Tumblr App in Apple App Store | Tumblr Business Model | How Does Tumblr Make Money? | How Does Tumblr Work?
Source: Apple App Store | Tumblr

How does Tumblr make money?

According to reports, Tumblr has more than 500 million Tumblr blogs live on its platform that attracts more than 300 million unique visitors per month to their website.

So how does Tumblr make money off of all this traffic?

Below is a breakdown of how much money Tumblr makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how Tumblr makes money in 2022

Tumblr has a revenue model that makes money in three (3) ways; ad revenue, subscription revenue with Tumblr Post+, and selling themes.

#1. Advertising Revenue (Tumblr Ads)

Tumblr makes most of its money through the ad revenue it makes from third party and sponsored ads.

As noted above, Tumblr attracts more than 300 million unique visitors per month to its website. Which means 100s of millions of impressions on their ads per month. Resulting in more ad dollars for Tumblr.

#2. Tumblr Post+ (Subscription Revenue)

In September of 2021, Tumblr rolled out a new way of making money for both themselves and the creators on Tumblr through Tumblr Post+.

Tumblr Post+ is a subscription service that gives creators the option to monetize their content on the Tumblr platform if they chose to do so. They have the choice of charging their followers with one of three (3) subscription tiers; $3.99, $5.99, or $9.99 per month – with Tumblr taking a 5% cut on all of it.

How much does Tumblr cost?

  • 5% cut of the creator’s subscription revenue

#3. Selling Themes

In addition to ad and subscription revenue, Tumblr also makes money by selling Tumblr themes to its users.

While many themes are free, Tumblr also offers Premium themes that range in price from $9 to $49 for users to purchase and use on their Tumblr blog.

Tumblr Premium Themes Cost:

  • Premium Tumblr themes range in price from $9 to $49

Tumblr subsidiaries, acquisitions, and exits

Aside from Tumblr being acquired by Automattic for $3 million, Tumblr has had its own fair share of investments as well.

To date, Tumblr has made a total of 1 investment and 1 lead investment.

Tumblr profit and revenue

Tumblr has not released any official reports in regards to company earnings.

Note: Because Tumblr is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Tumblr business and revenue model?

Tumblr makes money through a few revenue models that they combine within their company, they are:

  • Advertising business model
  • Revenue sharing business model
  • Subscription based business model
  • Transaction based business model

Tumblr funding, net worth, and valuation

According to Tumblr’s Crunchbase profile, Tumblr has raised $125.3 million over 6 rounds.

On August 12, 2019, Tumblr was acquired by Automattic for $3 million.