Facebook is becoming a leader in the video market as users prefer to watch video ads over static images, said Peleg Israeli, general manager of Bidalgo's Israeli operations.
Videos are expensive to make and an advertiser usually makes only one or two versions.
The Bidalgo executive said his company's technology, called ADaptation, can automatically turn one video into as many versions as needed, so that targeted audiences will see images they respond to most. For example, a German audience might see a German flag in one video while users in France will see their flag.
The product should account for as much as half of Bidalgo's revenue in the coming year "and down the line much more than that," Israeli said.
He said automated videos will give Facebook an advantage over Google's YouTube, as Facebook's core technology can identify users "in the most accurate way".
Google remains the leader in long-form video but is facing mounting competition from Facebook in the short-form market for videos that run up to several minutes.
Facebook has said it gets over 4 billion daily video views with more than 75 percent of that on mobile.
IHS senior advertising analyst Eleni Marouli said video is the next big project for Facebook, which needs video to lure branded advertising dollars away from TV.