News

Yahoo acquires ad platform BrightRoll for $640 million

yahoo.brightroll.290x195Yahoo 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.

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.

“It’s what brand advertisers love. It’s 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.

 

Originally published on IDG News Service (San Francisco Bureau). Reprinted with permission from IDG.net. Story copyright 2017 International Data Group. All rights reserved.
Previous ArticleNext Article

Leave a Reply

GET TAHAWUL TECH IN YOUR INBOX

The free newsletter covering the top industry headlines

Send this to a friend