Facebook acquires video ads company LiveRail

Facebook bought LiveRail, a startup company helping advertisers broadcast more relevant commercials via video which appears on their web page and applications.

LiveRail provides platforms for the markets which want to place commercials in online videos.

Firm did not reveal financial terms but according to some reports, Facebook paid between USD 400 and 500 mil. Advertising via online video ads is an area which should grow extremely fast in the next years.

- Commercials will be more interesting and the people will watch them in online vide which has better marketing effects. Advertisers will have benefits since more relevant commercials will help them use the best options which they have in commercials - Brian Boland, Vice President for Facebook Marketing said,

According to LiveRail, they publish seven billion videos per month.

Internet and mobile sector has been growing rapidly during the previous years. In 2013, only in Great Britain, a billion was spent on mobile ads, an increase of 93% compared to 2012. Some reports show that in USA the figure will reach up to USD 6 billion.

- It is not the question anymore how many people saw the ad but how they reacted to the information they were provided. Social networks have an incredible advantage on that front compared to everything else - Sanjana Chappall, the head of LEWIS Pulse.