Yahoo Acquires Programmatic Video Ad Platform Brightroll for $640 Million

Brightroll

Yahoo is acquiring Video Ad service platform Brightroll for USD 640 million. With this acquisition, Yahoo has become the largest video advertising platform in the United States, the company said. Brightroll is an intermediary service for both brands and publishers serving video advertising across PCs, mobile, and TV devices.

Buying Brightroll will upsurge Yahoo’s ability to sell video ads in real-time to marketers. Expressing that the deal will have a positive effect on Yahoo revenues, Yahoo CEO Marissa Mayer said in a blog post, “Video, along with mobile, social, and native, represents a new format of online advertising that has the potential to help us transform and modernize Yahoo’s display business and return it to growth”.

Brightroll, which is said to cross revenues of more than USD 100 million this year, has generated more than USD 40 million from investors like Adams Street Partners, Scale Venture Partners, Comerica Bank, True Ventures and others.

And this is not the only step Yahoo Inc. has taken for improving its video strategy. In the past, Yahoo announced the purchase of RayV, an Israel based agency which specializes in streaming high-quality video.

With video advertising budgeted around 9.7 per cent of the total digital advertising revenue which was estimated at USD 42.6 billion in 2013, video advertising is becoming a huge market and one of the reasons why Internet companies are racing towards acquiring these programmatic video advertising platforms.

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