Ooyala Buying Videoplaza, Branching Into Online Video Advertising
Online video technology and services company Ooyala dropped a surprise on the industry today, announcing that it will acquire London-based video ad management company Videoplaza, growing its business into the online video advertising market.
Ooyala announced that the two companies have an agreement in place for the acquisition, but didn't disclose the terms of the deal.
In explaining the move, Ooyala notes that U.S. digital video ad revenues will grow by more that 40 percent this year, and that media agencies are recommending that clients shift up to a quarter of their TV ad budgets to digital.
This acquisition is only the first move in a multi-part strategy to become the global leader in personalized online video, says Ooyala.
This news comes only two months after Ooyala itself was acquired. The Australian telco provider Telstra took a 98 percent ownership of the company in August.
Videoplaza has a long list of video advertising clients in Europe and the Asia Pacific region, including many broadcasters and tier-one media owners. The company says joining with Ooyala will helps it expand into the United States and service a broader range of customers.
"Ooyala helps media companies build the largest possible audiences online, while Videoplaza helps them extract as much value as possible from that audience. Our combined platforms will offer a more holistic view of content and ad performance across a broadcaster's entire business," says Ooyala chief executive officer Jay Fulcher.
2015 should be a strong year for programmatic digital video ad buying, with TV ad budgets finally shifting to online content.
Thanks to a December surge, mobile plays reach their highest share yet. Ad completion rates are high across all devices.
Smartphone and tablet viewing is increasing at a rapid rate. Half of video views will be mobile by Q3 2015, Ooyala predicts.
Australian telco Telstra already owned 23% of Ooyala; now, it's putting up another $270M for a 98% ownership of the company.
Advertisers often have more information about online video metrics than the content owners. Videoplaza aims to change that.