Liverail Acquisition By Facebook - What It Means For Consumers Today

By Faisal Rodgers


Facebook is a well-known social media site that has, over the last couple years, acquired several different companies. Its latest acquisition is with a company called LiveRail, a company that is known for delivering very targeted ads over videos. One of the main problems that people face when dealing with watching videos is that the ads that they see are not relative to the content being shown. The reason that a person searched for a video was to find a specific type of content. They would be more likely to purchase the products being displayed if they were actually relevant to what they were watching. This article will address why LiveRail will improve Facebook dramatically in regard to the delivery of ads using videos on the Facebook platform.

Facebook wanted a proprietary method of bolstering the viewable presence for its ads for the improvement of targeting and the aspect of having the videos relevant and sharp when presented. The new platform is being integrated into Facebook's new video ad program, which will be placing 15 second spots that are auto-playing in the News Feeds of members.

LiveRail is one of the largest firms in the online video space, and this gives Facebook a real edge on quality and accurate video presentation capability for its ads. It is estimated that the price tag for Facebook in the acquisition is in the $400 to $500 million range.

Although LiveRail is literally a video ad tech startup company, it's success put it on Facebook's radar right away. They are all about finding companies that have gained excessive revenue and an online presence quickly. This acquisition will likely be yet another profitable venture for Facebook and one that will help video watchers see only the most relevant ads available. This should be beneficial for everyone involved including the over 1 billion Facebook users, and the profitability of Facebook as well.

The biggest strength of the company is its bidding platform ecosystem which performs in real time as it selects the best priced ads for marketers from various inventories of different publishers. It also has a video inventory management system and a CheckPoint service that will block ads that are inappropriate. LiveRail is one of the faster growing companies in the field with a 300 percent growth over the past two years. The company is right on track to have over $200 million of gross revenue with a before tax gross earning well in excess of $30 million.

LiveRail is a company that helps publishers serve ads, specifically on the videos that they display on their websites. It gives them access to premium video inventory, and also allows them to present their advertisements in many different ways. Some have actually said that this company offers the best advertising solution for anyone that does video marketing.




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