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.
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 the third and final episode of our 3-part CMO50 video series exploring modern marketing and why it’s become a matter of trust, we’re delighted to be joined by Telstra’s former CMO and now digital services and sales executive, Jeremy Nicholas, and Adobe VP Marketing Asia-Pacific and Japan, Duncan Egan.
Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.
Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?
As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.
What are Chris Riddell's qualifications to talk about technology? What are the awards that Chris Riddell has won? I cannot seem to find ...
Tareq
Digital disruption isn’t disruption anymore: Why it’s time to refocus your business
Enterprisetalk
Mark
CMO's top 10 martech stories for the week - 9 June
Great e-commerce article!
Vadim Frost
CMO’s State of CX Leadership 2022 report finds the CX striving to align to business outcomes
Are you searching something related to Lottery and Lottery App then Agnito Technologies can be a help for you Agnito comes out as a true ...
jackson13
The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration
Thorough testing and quality assurance are required for a bug-free Lottery Platform. I'm looking forward to dependability.
Ella Hall
The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration