Facebook has acquired LiveRail, a tech start-up that helps companies place more relevant ads in the videos that appear on their website and apps.
The financials have not been announced; however some reports indicate that Facebook paid between $400m and $500m.
Brian Boland, vice president of ads, product marketing and atlas at Facebook said: "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."
According to a study published in April, more than £1bn was spent on ads in the UK alone in 2013 - a rise of 93% in the first year. As a result, a growing number of firms have been looking at ways to attract more advertisers.
Analysts predict that social media sites are likely to get a big share of this growing market.
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