Before, it was just a rumor. Now, it seems to be true. Yahoo has announced the acquisition of programmatic video platform, BrightRoll. The deal went down for a cool $640 million in cash, saying that BrightRoll was a profitable business venture and was expected to make $100 million in revenue this year.
If you’re still wondering why Yahoo picked up BrightRoll, to be simple, it’s all about the video and the video advertising. This is why purchasing the company made sense for Yahoo. With this completed acquisition, this would make their video network the largest in the US market. With the help of BrightRoll,there will be cross-platform (mobile) video syndication and distribution.
There was a post on the Yahoo tumblr blog by Yahoo CEO Marissa Mayer, and she feels that with video ads, they will be able to “replace the branded banner advertisement.”
“We say that video is display 2.0 because we believe it can reinvent and replace the branded banner advertisement. 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.”
This acquisition could help lead the way to changing display advertising for brands, for both mobile and online. This means more video advertising and less of your typical banner ad.
Below is some stats that were found in the Yahoo release:
- BrightRoll powers digital video advertising for the world’s largest brands and agencies, including 87 of the AdAge Top 100 US advertisers, all of the top 15 advertising agencies, and all 10 of the leading demand-side platforms
- BrightRoll served more video ads and reached more consumers in the US in 2014 than any other platform, according to comScore
- Tens of thousands of sites and mobile apps send approximately two billion requests per day to BrightRoll to monetize the inventory they worked hard to create
As a final note, the acquisition will probably close somewhere around the first quarter next year. Luckily for the BrightrRoll employees, everyone of them should still be able to stay at the video company.