Yahoo to meet up with its growth, on Tuesday announced its acquisition of a San Francisco based video ad selling and delivering startup – BrightRoll by paying cash of $640 million. This would be the second largest acquisition by Yahoo ever since it bought Tumblr last year.
Marissa Mayer, Yahoo CEO confirming the acquisition posted in a blog that this acquisition for sure would strengthen the company’s video advertising platform giving easy ways to marketers to real time video ads across many sites thereby replacing the everywhere present Web banner ads.
The key to Mayer’s turnaround strategy is both mobile and video advertising. Yahoo, off late to attract more users to its website and mobile apps than its rivals Google and Facebook has got videos as a crucial portion of its strategy. To achieve this it has got into deal with Live Nation, concert promoter to stream one performance on its site daily.
BrightRoll is a company leading in delivering video ads with instant computerized matching process. And the current digital video advertising category gets these programmatic video ads as one of its hottest area.
And with BrightRoll, the company that can deliver video ads without any additional programming across channels Yahoo believes to earn more dollars on advertising comparatively than its competitors, Facebook and Google. And according to Yahoo, BrightRoll being a large, profitable and growing company with this year’s expected net revenue to be more than $100 million, the deal should work up in adding to its own profit.
This trended serious business is Digital video advertising. According to the expectations of eMarketer, a research firm this web video ads business in US alone will make up to $6 billion by this yearend which is almost 56 percent hike and by 2018 is expected to reach about $13 billion.
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