Social media website Facebook has officially announced that it will acquire advertising technology company, LiveRail, which will help the company to generate higher revenue from ads.

On Wednesday, July 2, Brian Boland, Vice President of Ads Product Marketing and Atlas at Facebook, confirmed LiveRail's acquisition but did not disclose the amount. Boland says that LiveRail is a comprehensive advertising solution for video publishers and together with Facebook it can provide an improved video advertising experience to everyone.

"We believe that LiveRail, Facebook and the premium publishers it serves have an opportunity to make video ads better and more relevant for the hundreds of millions of people who watch digital video every month," says Boland. "More relevant ads will be more interesting and engaging to people watching online video, and more effective for marketers too. Publishers will benefit as well because more relevant ads will help them make the most out of every opportunity they have to show an ad."

Video ads generate more revenue when compared to banner ads. Several other Internet companies such as Google are also working hard to grab a chunk of the market. However, not all viewers like video ads, which deters them from using a website altogether.

Market observers believe that LiveRail's own technology will assist Facebook to improve its own autoplay video advertising product, which the company launched in March this year. With the help of LiveRail, Facebook will be able to generate more revenue from its video ads.

LiveRail also confirmed the acquisition on its own website. The company was believed to go public soon but it seems that LiveRail struck a better deal with Facebook. LiveRail has around 170 employees working in its four offices. The company also claims that it delivers 7 billion video ads every month.

"This announcement marks the beginning of a new chapter for the team at LiveRail, and I'm incredibly grateful to all the amazing people who have helped build this company to where it stands today. I'm confident that as part of the Facebook family, our team has the opportunity to redefine the ad tech landscape and set a new standard in technology for publishers," says Mark Trefgarne, CEO of LiveRail.

Facebook has a very large user base and millions of users access their Facebook account on a daily basis. The massive user base may help Facebook to acquire a major chunk of the video ad market.