Facebook acquires LiveRail
As people continue to use mobile devices to communicate, surf the Internet and make purchases, the need for effective digital advertising continues to grow. If companies are able to more easily reach the customers most interested in their products, they have a chance to increase profits.
It was reported recently that Facebook has acquired LiveRail, a company that creates video ad targeting technology. According to a Tech Crunch article, LiveRail is able to target 7 billion video ads monthly.
The ability to create targeted advertising is highly desirable. The more targeted an ad is, the better the chances will be of reaching the customers that are most likely to be interested. For Facebook, acquiring LiveRail could help the company to reach more users through video ads, which have been growing in popularity. According to LiveRail's website, the company is the largest programmatic platform for video publishers in the world. Tech Crunch heard from a source that the deal was between $400 million and $500 million.
"They believed, as we do, that publishers deserve a new generation of audience-aware advertising technology. We realized that by joining forces we'd be able to draw upon our respective strengths to move even faster towards our shared vision of creating the advertising platform of the future," said LiveRail about its deal with Facebook, on the LiveRail blog.
An acquisition deal can prove to be a beneficial move for a company that is looking for complementary technologies to help them achieve aims that they would not be able to achieve alone. Additionally, by joining forces with a larger company, it may be possible to take a business vision to the next level. An M&A advisor can help plan an effective acquisition strategy.