Famebit is basically a way for companies to get product placement in videos posted by popular YouTube users.
"We believe that Google’s relationship with brands and YouTube’s partnerships with creators, combined with FameBit’s technology and expertise, will help increase the number of branded content opportunities available, bringing even more revenue into the online video community", Google said in a blogpost on Tuesday.
Financial terms of the deal are yet to be known.
Also in the post by David Kierzkowski and Agnes Kozera, Founders of FameBit, the digital marketing firm had helped brands and creators collaborate on more than 25,000 videos that have generated more than 2 billion minutes of cumulative watch time.
According to Google, in the last year alone, the top 100 advertisers have increased their spend on YouTube video ads by 50 percent.