The Network Effect: Tumblr
This week’s post is on how the four types of network effects: Direct, Indirect, Cross-Network and Local Social Influence, are used to add value to Web 2.0 platforms. I will be discussing how Tumblr generates these four network effects to increase their user base as well as adding value to the service and products.
Tumblr
is a microblogging platform owned by Yahoo! Inc where users post multimedia,
text and other content all associated with tags to form a blog. Tumblr users
can also interact with each other through following one another, reblogging,
liking posts and exchange messages through the ‘ask box’. These features, and
many more, encourage the Tumblr community to stay active as they gain followers
while posting more content to the website.
The
Direct Effect is the value of a product or service is increased when the
adoption rate is increased. Tumblr’s value is their user base where the larger
amount of users, the more content which generates reblogs, likes and follows –
which all demonstrates the Network Effect. As Tumblr’s user base grows, content
will be more of quality which will engage more users and make already
registered users want to post more.
The
Indirect Effect is the increase in Tumblr’s user base, there is a potential for
an unplanned product or service to be born. As Tumblr has a very wide array of
user base, it is easy to make money off the blogging website. Users with a
large amount of followers, some as young as 14, are gaining dollars off their personal
Tumblr by selling ad space or monetize with ads from Google AdSense or other
alternatives on their personal blogs.
As
Tumblr’s user base increases, the activity of the website does so as well.
Therefore, a cross-network effect occurs because of added value by a second
service or product. Tumblr reaches people around the world with different
knowledge backgrounds. As for this, the content posted on the website ranging
from architectural layouts, programming codes to photography and even math
equations. This drives activity on the website with such useful content and
provides Tumblr with potential employees for their growing company.
Tumblr is the microblogging and social
networking home to 420 million users where they interact socially through tagged
posts, reblogging and liking. The posts on tumblr can be tagged that will not
disappear unless edited and can be tracked by the 420 million users on the
website. Tumblr also provides the user with an option to create a side blog on
which could be based around one theme that can solely evolve from one tag.
Tumblr’s
numbers are still growing to this day. Have you used Tumblr before? What do you
think?







