This week saw Yahoo buy BrightRoll for a hefty $640m, giving it control of the biggest video ad network in the US. Rami Brusilovsky, Director of Video Advertising at cross-channel ad platform dmg, comments on why the move should give Google and Facebook something to worry about.
The acquisition of Brightroll by Yahoo has been on the cards for a while. Brightroll were one of the last big independent video companies after AOL bought ADAP.TV and Facebook bought Liverail. Yahoo is sending a very powerful message to the market.
By announcing this acquisition Yahoo is making a statement that it is much more than Alibaba and that it is sticking to its roots in online advertising.
Even though Google is the one to beat in relation to video content views, Brightroll is the number one for video ad reach in the US. By buying Brightroll, Yahoo has in a stroke created a huge video footprint and a competitive edge over Google.
For the wider video industry, this latest acquisition raises the bar for people trying to enter this industry. As video is almost 100% brand money, I believe the landscape will soon look a lot leaner with only the big guys and a few medium-sized players left.
Medium-sized companies will need to up the ante and deliver true business and tech added value to survive and get a decent share of the market.
By Rami Brusilovsky
Director of Video Advertising
dmg
http://www.dmgmedia.co.uk/