Facebook Buy Boosts Video Ad Targeting Capability

Facebook has paid 'between $400m and $500m' for video ad targeting specialist LiveRail.

LiveRail, which announced the sale on its blog last Wednesday, positions itself as 'the world's largest programmatic platform for video publishers', and has grown since start-up in 2007 to 170 employees in four offices, delivering 7bn video ads each month.

The firm offers a real-time bidding platform for ad inventory, 'Checkpoint' technology keeping ads for tobacco and alcohol from children, and a data management system which helps buyers optimise their campaigns and publishers sell more of their space. Its existing relationships with both parties will boost Facebook's move into external ad sales. The social media giant says it won't be shutting down LiveRail's existing operations, as has happened with some buys in the sector.

Facebook has the option of integrating LiveRail's services with its Audience Network for mobile ads, to offer targeted video ads for a braod range of apps.

LiveRail raised $12m in a Series C funding round, led by Pond Ventures, and was reported to be considering an IPO later this year. Sources quoted by www.techcrunch.com say the firm had c.$60m in revenue in 2013 and was aiming for $200m this year.

At around the same time as this deal was completed, Twitter announced it was acquiring New York-based mobile ad retargeting and re-engagement advertising specialist TapCommerce for c.$100m.

Web site: www.liverail.com .