Tuesday - May 23, 2017

The battle for the mobile advertiser heats ups as Facebook acquires LiveRail


The battle for the mobile advertiser heats ups as Facebook acquires LiveRail

The news that social media giant Facebook has acquired LiveRail, a video advertising technology company, just a day after leading rivals Twitter laid out an approximate $100 million to acquire TapCommerce is a sure sign that the battle for the mobile advertising market is really starting to hot up, and the big guns are preparing to dig deep into their war chest to bring in over more and powerful artillery.

As has increasingly become their practice, Facebook are keeping quiet about exactly how much they paid for the San Francisco-based start-up, but the acquisition accentuates the fact that Marz Zuckerberg and company are determined to move beyond advertising on their own site, and will be taking advantage of LiveRail’s technology as well as their existing user data to both outdo their social media rivals but also traditional television in a fast heating up the battle for global advertising budgets.

According to a spokesperson for the social media giant, the combination of LiveRail and Facebook working in tandem with the premium publishers that it serves will make for a unique opportunity to produce video ads that are not only better, but also more relevant for the growing audience, running into hundreds of millions of people, who tune in to watch digital video every month.

With these kind of figures global marketing agencies, who for so many years, focus on TV advertising, find digital video increasingly attractive as it grabs users’ attention and is effective at telling emotional, memorable stories.

Online video is one of the fastest-growing parts of the online advertising market, and, according to the research firm eMarketer, is estimated to grow 42 per cent to $6bn this year in the US.

Big players like Hulu or YouTube are betting that online video ad budgets will carry on growing rapidly for years as marketers shift some of the $68bn of traditional television advertising budget into the medium.

LiveRail was the world’s largest video advertising platform in March 2014, according to research from ComScore. Its customers include Major League Baseball, ABC and Dailymotion to name but a few. LiveRail has 170 employees across four offices and delivers over 5bn video ads each month.

Facebook, however, launched its own premium video product earlier this year, hoping to convince marketers that the combination of an audience of 1.28bn and more accurate targeting makes its ads more efficient than traditional television.

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