Facebook has acquired LiveRail – a tech start-up that helps companies place more relevant ads in the videos that appear on their websites and apps.
LiveRail also provides a real-time bidding platform for marketers looking to place ads on online videos.
The firms did not reveal the financial terms, but some reports indicate that Facebook paid between $400m and $500m (£233m and £291m) to buy the firm.
“More relevant ads will be more interesting and engaging to people watching online video, and more effective for marketers too,” said Brian Boland, vice president of ads product marketing and atlas at Facebook.
“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.”