Feeds

Facebook pays half a billion dollars for firm that slaps ads on videos

'Cos you all love sitting though THAT, right?

The Essential Guide to IT Transformation

Facebook has paid an estimated half a billion dollars to buy a video advertising firm called LiveRail.

Facebook has not officially announced how much it paid for Liverail, but estimates have ranged between $400m and $500m - a huge chunk of change by anyone's standards. There was no word on the cash to stock mix that FB coughed for the firm.

Zuck's minions claimed the purchase will clobber online video watchers with "better", more relevant advertising.

It is likely that Facebook will now want to branch out into plastering advertising on videos. There's no word on whether these will be the vids that Facebook users have uploaded to the social network.

In a blog post, Brian Boland, vice president of ads product marketing and atlas at Facebook, wrote: "We believe that LiveRail, Facebook and the premium publishers it serves have an opportunity to make video ads better and more relevant for the hundreds of millions of people who watch digital video every month.

"More relevant ads will be more interesting and engaging to people watching online video, and more effective for marketers too. Publishers will benefit as well because more relevant ads will help them make the most out of every opportunity they have to show an ad."

Liverail works with customers including Major League Baseball, ABC Family, A&E Networks, Gannett, and Dailymotion to help them deliver video adverts. It was founded in 2007 and now claims to achieve five billion impressions each year.

Facebook recently joined Google, Apple and Twitter in launching a mobile ad network that generates revenue when users access apps outside Zuck's walled garden. It also moved into location-based advertising.

The analysis firm eMarketer sent us stats which demonstrate the size of the video advertising market. The sector is expected to generate $5.96m (roughly £3.5m) in the US this year, an increase of just under 42 per cent. In the UK, digital video advertising in the UK will rake in a total of £673m this year, more than doubling from £325m in 2013.

Facebook is also wolfing up an ever-increasing share of ad revenue, eMarketer continued, accounting for a 5.8 per cent share of all global digital ad revenues last year, up from 4.10 per cent in 2012.

In the US, Facebook won a 18.4 per cent market share of digital display advertising in 2013, overtaking Google for the first time. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.