Yahoo to begin running Tumblr's sponsored post ads

Yahoo will begin running Tumblr's sponsored post ads in a move described by Yahoo's SVP of home page and verticals, Mike Kerns, as "the most substantive integration between the two companies" since the acquisition of Tumblr.

Set to run on sites such as Yahoo News and Yahoo Beauty, the four pilot brands for the ad content are Unilever's Lipton, Procter & Gamble's Tide, Lionsgate's "The Hunger Games: Mockingjay - Part 1" and Toyota's Lexus.

Tumblr's global head of brand partnerships Lee Brown said Yahoo and Tumblr have been working on the expanded ad distribution system for the last nine months, adding that interest-based targeting will be coming to Tumblr "very soon."

This comes as Yahoo CEO Marissa Mayer said at Cannes Lions that digital advertising needs to aim to be 'as good as art'.

The Tumblr ads will appear in native advertising formats, including image-heavy sponsored content and stream ads.