Yahoo + Brightroll = The Future of Online Video Advertising
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- January 7th, 2015
Back in November, Yahoo! announced that it was acquiring Brightroll, the premiere online video advertising platform, for $640 million in cash. For advertisers, this was huge news that will undoubtedly change how brands are marketed from here on out.
What This Means for Yahoo!
The online advertising landscape, particularly its display subset, has changed significantly over recent years as digital video in particular becomes a go-to tool for many advertisers. While Yahoo is still a major purveyor of traditional display banner and native ads, it has lagged significantly in the video realm. Prior to its acquisition of Brightroll, Yahoo only owned about 2.4% of the worldwide digital advertising market. The rise of digital video has tested Yahoo, limiting the search engine from streams and streams (pun intended) of revenue, until now.
Going forward, the company will likely see a surge in its digital advertising revenue as well as market share. With its already formidable presence in traditional forms of display media, Yahoo is poised to become one of the largest digital advertisers in the world.
What This Means for Brightroll
Brightroll is not without benefits from the deal. The online video advertising platform now comes under Yahoo’s watchful eye, gaining large amounts of brand stability in the public sector. The platform no longer risks seeing its own brand and/or product compromised by becoming a publically traded entity, an option considered before its acquisition by Yahoo.
What This Means for Marketers
Brightroll has made Yahoo an extremely attractive partner for all manners of online advertising, mainly due to new integration possibilities. Now that Yahoo owns one of the largest online video advertisers in existence, marketers can look forward to a more seamless experience when creating campaigns. The possibilities are endless; within this (theoretical) highly integrated Yahoo interface individual IO’s could be created for traditional display advertising, video, and search. If these possibilities come to fruition, Yahoo would provide intense competition for Google’s AdWords platform, which prior to now, was the only ad platform that provided marketers with all of these tools.
The Future of Display Advertising
By acquiring Brightroll, Yahoo has made a crucial investment in the future of online marketing, positioning itself as a direct influencer of that future. As most marketers know, online marketing is now so much more than search and banner ads on desktops; the rise of digital video and mobile computing has caused advertising revenue in these mediums to skyrocket. Marketers must fully embrace digital video as an effective and lucrative form of online advertising, and must make sure that the brands they represent understand this reality as well and make room in their overall television brand budgets for digital video. But why?
TV advertising remains one of the most direct ways to reach a target audience, and over time, continues to create a rapport with said audience. It follows logically that a shift from TV to online video advertising should become the norm. Brands that run TV ads already operate within the framework to successfully move into the digital realm; it’s simply a matter of shifting the message and style of the ads to appeal to an online audience. It’s crucial to note that audience segmentation is far more specific through online advertising compared to TV. By implementing digital video campaigns, marketers can specify who each campaign should target based on tracked user behavior, limiting impressions to include only those likely to engage with the brand in question; a luxury unavailable with traditional TV ads. Going forward, digital video advertising is going to become an even more crucial part of the digital marketing sphere.
While TV will retain much of its inherent value, brands and marketers alike must take note of and utilize the power of the Internet, and thanks to this new Yahoo/Brightroll partnership, how to go about doing so now involves options.
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