This acquisition is important for Yahoo because it doesn’t have the video inventory it needs to compete with power players like YouTube.
“YouTube gets billions of views every month and Yahoo does not have that same inventory available, so acquisition is the way to go,” Aravindh Vanchesan, director of the digital media practice at research firm Frost and Sullivan, told AdExchanger in April.
And video advertising is hotter than a New York City sidewalk in July. When Mondelēz International struck its deal with TubeMogul, the focus was on video. Likewise, both Twitter and Facebook made their video plays in late June and early July, respectively, when Twitter snapped up SnappyTV and Facebook acquired video ad platform LiveRail.
Acquisitions around video ad platforms have come at a ferocious pace. Yahoo, of course, doesn’t have that yet. But with Rayv, it has something its needed for a long time: the means to distribute its own video assets. A video ad platform would seem to be Yahoo’s next logical step, especially when one looks at all of its competitors with both video distribution and ad-serving tools.