The deal will make Yahoo's video ad platform the largest in the U.S., it says
Yahoo is acquiring the video advertising platform BrightRoll for $640 million, in a move that could help to offset declines in its traditional display ad business.
The deal was announced Tuesday and is one of Yahoo's largest acquisitions since it bought Tumblr last year for just over $1 billion.
Yahoo already runs video ads on properties like Yahoo Screen, but BrightRoll's system gives marketers a way to buy ads in real time across thousands of websites and mobile apps.
"Online video advertising is increasingly fragmented across thousands, if not millions, of sites and mobile apps," the companies said. Advertisers want ways to buy video ads at scale and across many sites in fewer, simpler transactions.
The deal is expected to close by March and will make Yahoo's video advertising platform the largest in the U.S., they said.
Yahoo has struggled to grow its ad business and compete better against Google and Facebook. It may have made some progress lately, reporting in its earnings call last month that its native ads are doing well on mobile.
It's been struggling in the area of traditional display ads on the desktop, however. But it contended Tuesday that video ads are the new display advertising.
"Video is display 2.0," CEO Marissa Mayer said in a post on Tumblr.
"Its what brand advertisers love. Its a format that elegantly and easily transitions from broadcast television to PC to mobile and even to wearables," she said. "This is why video is a key part of our strategy."
It can also replace the branded banner ad, according to Mayer.
Digital video advertising is increasing at "an eye-popping rate," eMarketer said recently, although spending on TV ads still outpaces it.
BrightRoll's revenues are expected to exceed $100 million this year, Yahoo said. The company expects to retain its team of roughly 400 employees.
Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com
In this episode of Conversations over a Cuppa with CMO, ABC's director of audiences, Leisa Bacon, shares how she's navigated the COVID-19 crisis, the milestones and adaptability it's ushered in, and what sustained lessons there are for marketers as we start to recover.
In my first article in this MYOD [Make Your Organisation Data-Driven] series, I articulated a one-line approach to successfully injecting data into your organisation’s DNA: Using a Dataset -> Skillset -> Mindset framework. This will take your people and processes on a journey to data actualisation.
For businesses and advertiser categories currently experiencing a slowdown in consumer activity, now is the optimal time to get started on projects that have been of high importance, but low urgency.
The effects of the coronavirus slammed the brakes on retail sales in pubs, clubs and restaurants. Fever-Tree’s Australia GM Andy Gaunt explains what they have learnt from some tricky months of trading
Zero proof spiritsUsa since 2011 www.arkaybeverages.com🤪🤟
Sylvie
How this alcohol-free spirits brand rode the health and wellness wave
okay this a good newsmaybe i gonna try it
kenzopoker1
CMO's top 8 martech stories for the week - 9 July 2020
Very insightful. Executive leaders can let middle managers decide on the best course of action for the business and once these plans are ...
Abi TCA
CMOs: Let middle managers lead radical innovation
One failing brand tying up with another failing brand!
Realist
Binge and The Iconic launch Inactivewear clothing line
I am 56 years old and was diagnosed with Parkinson's disease after four years of decreasing mobility to the point of having family dress ...
Nancy Tunick
The personal digital approach that's helping Vision RT ride out the crisis