Yahoo buying Tumblr? It's just the start

The data turf war.

When a small impactful start-up is acquired by a sizeable market player, the inevitable questions of why and what for ensue. Yahoo did this on Monday when it announced the acquisition of Tumblr, for a staggering $1.1bn. The microblogging site, whilst a keen media player, has only posted revenues of $13m. So with motivations unlikely to be financial, this leaves us to look at Tumblr’s other key asset: Customers - which = DATA.

Data has quickly become the currency of the internet and the marriage of both social and interest data is a very powerful commodity. Being able to merge and stitch together data is something all organisations are increasingly looking for, as it brings genuine insight into audiences and their respective preferences. This level of understanding enables brands to market in a much more relevant and scaled fashion, something that can bring about an entire change in the marketing department's  relationship to both their internal and external customer. So, in Yahoo's case, its recent focus on becoming a lifestyle business must be data driven and it’s this insight that they stand to gain through Tumblr.

Whilst this is a clear turning point in the direction of Yahoo’s business strategy, the wider impact is much more interesting with the acknowledgement that data, and the insight it generates, can transform organisations. It’s not the first time that this data land-grab has occurred. Let us not forget when Facebook bought Instagram for a cool billion dollars, with only 13 employees, Google acquired Wildfire, and Salesforce are integrating Buddymedia; the motivation was the same - access to data to effectively target consumers based on their interests, eliminating the need for clusterbomb marketing.

Monetising and creating the system to mine data for insight, is the direction in which marketing and media is headed. Today, online media has become a commodity and the data held on it is now the currency to trade. This is a powerful position for social currency traders and platform enablers, as they can unlock the potential held within brands. So applying a revenue model that intelligently connects content and the consumer, with a brand they want to be engaged with, at their convenience, is an impactful entity and one that large media players are moving towards.

Where the internet of old had more of a database function, the passage of time has shown that it is maturing into a playground where data can be readily shared and responded too. Gone are the days when content was consumed in a silo. Now it’s shared, openly and discussed at length with any numbers of audiences, globally. These conversations, coupled with a more connected approach to life and advances in technology have created a consumer shift, so powerful that brands need to realign their business thinking. Data means knowledge and that, complemented with a dynamic brand proposition can be transformational.

It will be interesting to see how Yahoo works with Tumblr to reposition itself over the coming months. Clearly Tumblr’s power lies within the insight it can provide and if this data is used wisely, we could see Yahoo returning to 'darling' status once more. Don't be swayed by city commentators reflecting on the tech sector massacre in 2000, because the real success story here is not, as you might expect, the start-ups getting acquired or even the big players realising they need more than scale and brand loyalty to succeed; it’s arguably the wider tech industry. Where once software ruled; industry is now moving towards a more customer centric view of the world, using data to intelligently understand audiences and their needs in a super-fast, connected planet. This programmatic shift is one that is arguably more impactful and will drive business to the next level.

Rupert Staines is European Managing Director at RadiumOne

Marissa Mayer. Photograph: Getty Images

Rupert Staines is European Managing Director at RadiumOne

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Green party calls on Labour, Lib Dems, and Plaid Cymru to form a "progressive alliance" next election

Will Jeremy Corbyn, Tim Farron and Leanne Wood agree to meet for talks?

The Green party leadership have called upon Labour, the Lib Dems and Plaid Cymru to work together to challenge the Tories at the next election. In an open letter, the Green leaders stress the exceptional circumstances occassioned by the vote to leave the EU:

“In a spirit of openness and transparency, we are writing to you as leaders of parties which oppose Brexit, to invite you to a cross-party meeting to explore how we best rise to the challenge posed by last week’s vote to Leave the EU.  

“We have a UK Government in chaos, an economy facing a crisis and people up and down the country facing serious hardship. There is an urgent need to make a stand against any austerity and the slashing of environmental legislation, human and workers’ rights, that may come with Brexit. 

“With the growing likelihood of an early General Election, the importance of progressive parties working together to prevent the formation of a Tory-UKIP-DUP government that would seek to enact an ultra-right Brexit scenario is ever more pressing.

Caroline Lucas shot down a rumour that she would be joining Corbyn’s shadow cabinet. But her party has decided to call for a progressive alliance and an early general election. 

Key to such cross-party talks would be the demand for electoral reform, as the leader Natalie Bennett added in a statement:

“Central to such a progressive alliance would be a commitment to proportional elections for the House of Commons and an elected second chamber.”

The call for a more plural politics follows a post-referendum surge in Green party membership, with up to 50 people joining per hour.

Here’s the letter in full:

Open letter to: Jeremy Corbyn, Tim Farron, Leanne Wood on behalf of Green Party of England and Wales,

In a spirit of openness and transparency, we are writing to you as Leaders of parties which oppose Brexit, to invite you to a cross-party meeting to explore how we best rise to the challenge posed by last week’s vote to Leave the EU.  

Britain is in crisis and people are scared about the future. Never have we had a greater need for calm leadership to be shown by politicians.  

We have a UK Government in chaos, an economy facing a crisis and people up and down the country facing serious hardship. There is an urgent need to make a stand against any austerity and the slashing of environmental legislation, human and workers’ rights, that may come with Brexit. 

With the growing likelihood of an early General Election, the importance of progressive parties working together to prevent the formation of a Tory-UKIP-DUP government that would seek to enact an ultra-right Brexit scenario is ever more pressing.

This is an opportunity to recognise that a more plural politics is in both the Left’s electoral and political interests. This crisis exposes the absurdity of our first past the post electoral system.  Just 24 per cent of those eligible to vote elected the government that called the referendum. The only fair way to proceed is to have a proportional voting system where people can back the politicians who they believe in, rather than taking a gamble and not knowing who they will end up with.  

The idea of a progressive alliance has been floated for several years, and proposals have once again been put forward in the context of the current crisis.  We believe that the time has come to urgently consider such ideas together in the context of a Westminster Government. We recognise the very different political situation in Scotland, given the strongly pro-EU majority there. We hope that co-operation between progressive parties their can ensure that this mandate is respected, and we will support them to keep all options open.

We look forward to your response,

Natalie Bennett, Leader of The Green Party of England and Wales

Steven Agnew MLA, Leader of the Green Party of Northern Ireland

Alice Hooker-Stroud, Leader of Wales Green Party

Caroline Lucas, MP for Brighton Pavilion

India Bourke is the New Statesman's editorial assistant.