Yahoo’s latest acquisition is being heralded by some analysts as a smart move for its video business strategy. Yahoo has agreed to purchase BrightRoll, a leading platform in the video advertising space, for $640 million in cash. The deal follows the $6.3 billion recently earned by Yahoo from its investment in Alibaba. Acquisition of the video ad company could prove to be the perfect complement to Yahoo’s strategy to push more video content on its site and mobile app.

According to The New York Times, Yahoo’s current video strategy is one that includes original video programming as well as daily music performances from Live Nation. As the amount of video content increases on Yahoo’s platforms, so will the opportunities for ad sales.

BrightRoll matches video ads with the appropriate audience based on age, geographic area and other key indicators. Research firm eMarketer suggests that while programmatic “video currently accounts for about 12 percent of video advertising… it will account for 4o percent of digital video ad dollars in 2016,” reports NYT.

Yahoo’s chief executive, Marissa Mayer, took to her Tumblr (a Yahoo property) to discuss the acquisition. “BrightRoll will dramatically strengthen Yahoo’s video advertising platform, making it the largest in the U.S.,” she wrote. The video ad company offers marketers a simple and efficient way to buy online video advertising from “the largest set of online video advertising inventory available,” she added.

Yahoo also reports that BrightRoll is a profitable business expected to exceed $100 million in net revenues for the year.

With the purchase of BrightRoll, Yahoo joins competitors AOL and Facebook, both of which acquired similar video ad companies last year.