SANTA CLARA, Calif. -- Ooyala, a Telstra subsidiary and the leading innovator in video streaming, personalization and analytics, today announced a definitive agreement to acquire Videoplaza, a leader in video advertising technology and monetization. Videoplaza operates one of the world's largest premium video ad serving platforms and programmatic trading solutions, delivering ads to viewers across all devices. It is used by the most successful broadcasters and media companies in Europe and the Asia Pacific region to maximize video monetization.
This acquisition allows Ooyala to tap into the fast-growing video ad market and build out a new business dimension in advertising. As more premium video viewing moves away from traditional TV to web and mobile consumption, major media agencies are recommending their clients move up to 25% of their TV ad budgets to digital. In the U.S. alone, digital video ad revenues will increase more than 40% this year, compared to just over three percent growth for TV advertising.
For Ooyala, this acquisition is the first step in a multi-step strategy aimed at establishing global leadership in personalized cloud TV and video, following Ooyala's acquisition by Telstra, the world's tenth largest telecommunications and information services company. For Videoplaza, joining forces with Ooyala enables a rapid expansion into the U.S. and helps address a broader range of customers around the world through Ooyala's global sales force.
With Videoplaza, Ooyala will offer an expanded product portfolio addressing a full range of customer needs. These include content acquisition and workflow, playback experience, ad serving, programmatic trading, personalized content recommendation, and real-time analytics for audience behavior as well as content and ad performance. Each company's individual offerings will remain in the market on a standalone basis. Over time, Ooyala will also offer a unified platform leveraging the strengths of both companies' technologies and expertise.