Facebook on Wednesday said it would buy startup ad tech firm LiveRail for an undisclosed amount.
The news came via a Facebook blog post by VP Brian Boland, who pointed to LiveRail’s relationships with Major League Baseball, ABC Family, A&E Networks, Gannett, and Dailymotion, saying the company helped “offers a comprehensive platform for online video publishers that help them find and serve the best ads possible.”
TechCrunch reported that Facebook paid between $400 million and $500 million for LiveRail, which was founded in 2007.
LiveRail also provides marketers access to premium video inventory and the information that they need in order to decide where to show their ads.
The digital video ad market has been experiencing dramatic growth over the past several years and this year is expected to grow by 42%, according to forecasts from eMarketer, exceeding $5.96 billion.
“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,” Boland wrote. “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.”