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What: Yahoo has confirmed the acquisition of company BrightRoll for US $640 million in cash .
Why it matters: This a major move after a not so sucsessful acquition of Tumblr last year.Specially, when online video advertising is growing at a brisk pace and expected to reach US $6 billion  in 2014.The deal could turn Yahoo’s video ad platform “the largest in the U.S.” Yahoo’s Brightroll acquisition follows AOL’s acquisition of Adap.TV, Facebook’s acquisition of LiveRail, as well other acquisitions by Google to gain clout in the online video serving and online video advertising markets.

MJKpIG5V_400x400Yahoo has confirmed it will acquire video ad company BrightRoll for US $640 million in cash, turning the company into a big player in the growing online video market. Last month we already reported that the deal was  in the making. 

handshake behind a corporative building.Great for any design.The acquisition was announced on Tuesday and is Yahoo CEO Marissa Mayer most expensive acquisitions after it acquired Tumblr for US$1 billion last year. Unlike Tumblr, Brightroll is already profitable with US $100 million in revenues and 2 billion ad requests each day.

The deal will combine Yahoo’s premium ad inventory and data with BrightRoll’s programmatic video ad marketplace. BrightRoll will continue working with non-Yahoo publishers and the 400-plus BrightRoll team will be joining Yahoo, Mashable reports.

According to Marissa Mayer, video is one of the company’s key growth areas (along with mobile, social and native advertising), and this acquisition will make Yahoo’s video ad platform “the largest in the U.S.”

 Video is one of the company’s key growth areas , and this acquisition will make Yahoo’s video ad platform “the largest in the U.S”

“Video, along with mobile, social, and native, is driving a surge in digital advertising. Here at Yahoo, video is one of the largest growth opportunities, and BrightRoll is a terrific, strategic and financially compelling fit for our video advertising business,” Mayer said in a press release.

Hogging the video business

The video category is one of the fastest-growing segments of online advertising. eMarketer expects nearly US $6 billion to be spent in the U.S. in 2014 and that amount to be doubled by 2016. .

The move, could be seen as Brightroll’s response to AOL’s purchase of Adap.tv, a similar company that focuses on digital video advertising.

BrightRoll was founded in 2006 by Tod Sacerdoti who is still its CEO. The company has raised US $40 million in funding from investors including Adams Street Partners, Scale Venture Partners, Comerica Bank, True Ventures, Trident Capital, KPG Ventures, Michael Tanne, Fabrice Grinda, Auren Hoffman and Jeff Clavier, according to CrunchBase.

Mayer has been criticized for spending over US$1 billion in the Tumblr acquisition last year. Some observers say the deal is not paying off.  But Meyer expects Tumblr to become a U $100 million business for Yahoo next year.

What: Yahoo has confirmed the acquisition of company BrightRoll for US $640 million in cash .
Why it matters: This a major move after a not so sucsessful acquition of Tumblr last year.Specially, when online video advertising is growing at a brisk pace and expected to reach US $6 billion  in 2014.The deal could turn Yahoo’s video ad platform “the largest in the U.S.” Yahoo’s Brightroll acquisition follows AOL’s acquisition of Adap.TV, Facebook’s acquisition of LiveRail, as well other acquisitions by Google to gain clout in the online video serving and online video advertising markets.

MJKpIG5V_400x400Yahoo has confirmed it will acquire video ad company BrightRoll for US $640 million in cash, turning the company into a big player in the growing online video market. Last month we already reported that the deal was  in the making. 

handshake behind a corporative building.Great for any design.The acquisition was announced on Tuesday and is Yahoo CEO Marissa Mayer most expensive acquisitions after it acquired Tumblr for US$1 billion last year. Unlike Tumblr, Brightroll is already profitable with US $100 million in revenues and 2 billion ad requests each day.

The deal will combine Yahoo’s premium ad inventory and data with BrightRoll’s programmatic video ad marketplace. BrightRoll will continue working with non-Yahoo publishers and the 400-plus BrightRoll team will be joining Yahoo, Mashable reports.

According to Marissa Mayer, video is one of the company’s key growth areas (along with mobile, social and native advertising), and this acquisition will make Yahoo’s video ad platform “the largest in the U.S.”

 Video is one of the company’s key growth areas , and this acquisition will make Yahoo’s video ad platform “the largest in the U.S”

“Video, along with mobile, social, and native, is driving a surge in digital advertising. Here at Yahoo, video is one of the largest growth opportunities, and BrightRoll is a terrific, strategic and financially compelling fit for our video advertising business,” Mayer said in a press release.

Hogging the video business

The video category is one of the fastest-growing segments of online advertising. eMarketer expects nearly US $6 billion to be spent in the U.S. in 2014 and that amount to be doubled by 2016. .

The move, could be seen as Brightroll’s response to AOL’s purchase of Adap.tv, a similar company that focuses on digital video advertising.

BrightRoll was founded in 2006 by Tod Sacerdoti who is still its CEO. The company has raised US $40 million in funding from investors including Adams Street Partners, Scale Venture Partners, Comerica Bank, True Ventures, Trident Capital, KPG Ventures, Michael Tanne, Fabrice Grinda, Auren Hoffman and Jeff Clavier, according to CrunchBase.

Mayer has been criticized for spending over US$1 billion in the Tumblr acquisition last year. Some observers say the deal is not paying off.  But Meyer expects Tumblr to become a U $100 million business for Yahoo next year.

What: One month after its acquisition of Adap.tv, AOL has topped Google as the property with the most video ads watched.
Why is it important: In a move that exceeded the purchase of Huffington Post, Tim Armstrong is betting on video as the departure point of the Web’s ever-growing ad market.

Last month, AOL announced it had completed its acquisition of Adap.tv, thus consolidating its leadership position in digital video, said AOL’s Chairman and CEO Tim Armstrong. “AOL is well positioned to capitalize on two clear trends in the video space – the movement of advertising dollars from linear to online video and the shift from manual transactions to programmatic media buying”, Armstrong said.

According to ComScore’s Web video rankings for September, AOL topped Google as the property with the most video ads watched last month –3.7 billion views to reach 50% of U.S. online video viewers, compared to the YouTube parent’s 3.2 billion and 36% population span. This numbers prove that Adap.tv’s US $405 million (in cash and stock) agreed price is actually paying off. In August, AOL served 525 million video ads, and Adap.tv served 2.45 billion. Last month, those numbers bumped up to 597 million and 3.125 million, respectively.

However, as AdAge reports, AOL wouldn’t have one-upped Google were it not for Adap.tv, which remains a standalone entity within the company’s ad tech division AOL Networks. The ad tech firm accounted for 3.13 billion, or 84%, of the video ads attributed to AOL, which should result in an sizeable boost to the portal’s video ad revenues.

Says CNet that this news come one month after AOL overtook Facebook in the ComScore ranking of Web properties’ unique video views. Google is still the leader in that category by far, but AOL’s climb reflects Armstrong’s focus on video as the home of the fastest-growing ad market on the Web.

Sources: CNetAllThingsD, AdAge.

Facebook-UsuariosFacebook would be integrating video ads into its user´s time lines. The social network is studying the possibility of incorporating autoplay video ads into the time lines of its users, according to the Financial Times.

The video ads would last 15 seconds and would automatically start without sound, to reactivate and restart with audio when the user clicks on it. Facebook is attempting to cater to advertisers who are increasingly interested in online video advertising. It plans to charge a cost of US$ 20 per thousand views.

Unilever, Nestle, Ford, Diageo, American Express and Coca Cola, some of the largest Facebook´s advertisers, would display their video ads in test mode next summer.

Facebook-UsuariosFacebook would be integrating video ads into its user´s time lines. The social network is studying the possibility of incorporating autoplay video ads into the time lines of its users, according to the Financial Times.

The video ads would last 15 seconds and would automatically start without sound, to reactivate and restart with audio when the user clicks on it. Facebook is attempting to cater to advertisers who are increasingly interested in online video advertising. It plans to charge a cost of US$ 20 per thousand views.

Unilever, Nestle, Ford, Diageo, American Express and Coca Cola, some of the largest Facebook´s advertisers, would display their video ads in test mode next summer.

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