Yahoo to buy video ad service Brightroll
Purchase to make Yahoo's video advertising platform largest in the US
Yahoo has announced that it will pay $640m for video advertising platform Brightroll, its second biggest purchase under chief executive Marissa Maya.
The San Francisco startup allows advertisers to plan and target video ad campaigns and allows publishers to add advertising inventory into their content. The service works across web, mobile and connected devices such as TVs.
"Online video advertising is increasingly fragmented across thousands, if not millions, of sites and mobile apps. More so than with traditional broadcast television, advertisers are seeking ways to buy online video advertising at scale across many sites in fewer, simpler transactions," said Mayer.
In a blog post confirming the acquisition Tuesday, Maya predicted that BrightRoll ads could one day replace the ubiquitous Web banner ad.
"Video, along with mobile, social, and native, represents a new format of online advertising that has the potential to help us transform and modernise Yahoo's display business and return it to growth," Mayer wrote in her blog post.
According to Yahoo, BrightRoll is expected to have revenues of more than $100 million this year and will make Yahoo's video advertising platform the largest in the United States.