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Marketing the YouTube Way

EVERY DAY

www.youtube.com

YouTube is a video sharing website

Time Line

www.youtube.com

Steve, Chad & Jawed begin developing YouTube in Chad’s garage

2005

December

February

April

June

YouTube is officially launched

The first video is uploaded to YouTube; “Me at the zoo”

The YouTube site is revamped to add more socialnetworking features

Time Line

www.youtube.com

NBC requests removal of hundreds of video clips from YouTube

2006

July

February

April

June

YouTube has 16 million viewers daily

C-Span requests removal of Stephen Colbert clips, then posts them to Google video

NBC decides to enter into a promotional partnership with YouTube (this was an attempt by YouTube to become a provider of mainstream entertainment).

YouTube starts adding video ads to its home page

August

Time Line

www.youtube.com

2006

September YouTube announces a deal with Warner Brothers that would allow music videos from such artists as Madonna & Red Hot Chili Peppers

YouTube announces a deal with Warner Music Group to distribute WMG’s music video catalog (including music videos, behind-the-scenes footage & artist interviews)

(these deals were intended to attract more advertisers- big brands preferred to advertise next to professional content rather than amateur productions)

Time Line

www.youtube.com

2006

October YouTube is acquired by Google for $1.65 billion

Google’s mission – to organize theworld’s information andmakeit universally accessible anduseful

YouTube benefits from Google’s global reach

Time Line

www.youtube.com

COUNTRY LANGUAGE LAUNCH DATE

 Brazil  Portuguese (Brazil)  June-        2007

 France  French  June-        2007

 Ireland  English (Ireland)  June-        2007

 Italy  Italian  June-        2007

 Japan  Japanese  June-        2007

 Netherlands  Dutch  June-        2007

 Poland  Polish  June-        2007

 Spain  Spanish  June-        2007

 United Kingdom  English (United Kingdom)  June-        2007

 Mexico  Spanish (Mexico)  October-   2007

 Hong Kong  Chinese (Traditional)  October-   2007

 Republic of China (Taiwan)  Chinese (Traditional)  October-   2007

 Australia  English (Australia)  October-   2007

 New Zealand  English (New Zealand)  October-   2007

 Canada  English & French (Canada)  November- 2007

 Germany  German  November- 2007

 Russia  Russian  November- 2007

 South Korea  Korean  January-    2008

 India  English (India)  May-         2008

 Israel  English  September-2008

 Czech Republic  Czech  October-    2008

 Sweden  Swedish  October-    2008

goes global

9

5

3

2

111

Strategy

www.youtube.com

Initial target audience: - Teenagers - College students

- Hobbyists - Amateur film-makers

Slogan: Broadcast Yourself(This reflects the basic intent of the sites owners)

To entice these people they came up with a contest which gave away one iPod Nano to a random member each day, which ran for two months. Contest worked on a point-based system

one point was rewarded for signing upone for inviting othersone for posting a video

Strategy was based around: User Generated Content (UGC)

- Users could join for free- Users would create their own content and upload it - Clips were limited to 10 minutes of playing time (the reason was to keep bandwidth down)

(This was a cost effective model because it allowed the usersto create the content for the site)

The more the points you gained, the higher the chance of winning

Strategy

www.youtube.com

Videos: - YouTube videos are accompanied with a piece of HTML which can be used to embed the video on pages outside of YouTube (like social networking pages and blogs)

- Most YouTube videos do not allow a download option and require the user to view them through the

YouTube site.

- June 2008 YouTube changes its policy to allow “long form content” to its partners but limits the content to 1 GB

Strategy

www.youtube.com

Content ID: - Used to identify copyright material uploaded by users so companies can choose to either have it:

a) removed immediately b) left on the site and the copyright holder could make money via advertisements (this translates into copyright holders making money from the piracy of their material)

- Content ID has been a win-win for everyone- users don’t have their videos removed- viewers have more videos to watch & choose from- YouTube doesn’t have to worry about finding/ removing copyright material & lawsuits- The copyright holders make money

Strategy

www.youtube.com

Revenue: - Nearly all revenues are generated from ads sold to and uploaded by media partners known as PVAs (participatory video ads)- PVAs display on the side of the screen and can be rated, commented on & embedded in blogs- PVAs can earn “most viewed”, “most discussed” & “top favorite” status just like other videos- But only about 4% of videos uploaded to YouTube are from media partners

Why Use YouTube?

According to Hitwise, YouTube ranks #1 for all online video websites ranked by market share of U.S. visits.*

As of March 2008, YouTube Market share stood at 73.18%.

Market share was up 32% over March 2007.

Use of Google to search text websites will also display results for videos on YouTube. Result is higher rankings for both - currently #1 in their fields!

*“Report: YouTube Dominates Video More Than Google Dominates Search”, March

2008 http://www.readwriteweb.com/archives/youtube_dominates_video.php.

•Every MINUTE, 10 HOURS of video is uploaded to YouTube.

•51% of users go to YouTube weekly or more often.

•52% of 18-34 year olds often share videos with friends and

colleagues.*

•YouTube can be uploaded onto other social networking sites such

as Facebook, MySpace and Twitter. Due to copyright issues,

YouTube cannot upload other social networking site onto its pages.

•YouTube is also a social networking site allowing public and private

viewers.

•Provides forums for political, social and personal issues.

•Allows for space to convey messages, feedback and personal

opinions on a variety of topics.

•YouTubers act independently but yet collectively. *”YouTube Fact Sheet”. June 2008

http://youtube.com/t/fact_sheet.

YouTube – User Engagement

Visits – May 07 to May 08

May

June Ju

ly

Augu

st

Sept

embe

r

Octob

er

Novem

ber

Decem

ber

Janu

ary

Febr

uary

Mar

chAp

ril

May

290

152

214

276

338

400

“Compete .com YouTube Site Analytics”. May 2008 www.compete.com.

Million

s

How Is It Used?When the Boss Is Looking!

Other

To try and find a supplier

To learn more about how to do marketing online

To look at competitors' products/services

To understand more about a particular product

To understand more about a subject important for your business

13%

16%

19%

28%

40%

48%

% How Used for Work

“YouTube Report 2009”

How to Use YouTubeVideo Categories

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Peop

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Blo

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Gadge

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News & P

oliti

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Auto

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Trav

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Pla

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Howto

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Distribution of YouTube Video Cat-egories

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“Understanding the Characteristics of Internet Short Video Sharing: YouTube as a Case Study”. July 25, 2007 Cheng, Xu, et al, School for Computing Science, Simon Fraser University.

Using YouTube SuccessfullyBenefits of YouTube:

•Allows users to create, build and shape the content to fit their desired environment.

•Engaging Users - applications almost always require another person to be successful – Social Networking.

•Provide value to the end user – What small problem did it solve? What’s in it for them?

•Incorporates competitive element.

•Allows user to interact where ever they may be (online or offline).

•Launch connections – business, entertainment, social.

Using YouTube SuccessfullyBenefits of YouTube (continued):

•Harness the power of the crowd.

•Data on an epic scale – moves the internet to another level.

•Inspires creativity - breaking traditional barriers in advertising and awareness among users.

•Video is easier to consume than written text.

•Digital Natives – users spend more time creating and networking than watching television or reading newspapers.

•Easy to upload, search, manage, interact.

•Name recognition.

Barriers with YouTube

•Rapid changes in technology create difficulties in maintaining copyright laws.

•Freedoms are limited in countries outside the U.S. – leaders, religion, gender, speech content.

•YouTube’s Community Guidelines list cause for removal of videos –

Sex and Nudity PrivacyCopyright HarassmentShocking and Disgusting ImpersonationDangerous Illegal Acts Hate Speech Threats Children

Barriers with YouTube

•Due to increased need for broadband width, some businesses, universities, institutions and private usage have difficulty with downloading video.

•YouTube’s popularity is also becoming its detriment. More bandwidth decreases speed. Again, need for increased technology.

•Some popular domain names do not belong to the corporations, but to individuals.

McDonald’s David Bowie MicrosoftBMW Coca Cola YahooMTV Volkswagon IBMDisney

43% of users click on a name to view the channel.

Who Are YouTubers?BIG Business * Small business * Artists * Actors * Students * Bands * Realtors * Professionals * Car Manufacturers * Politicians * Senior Citizens * Teachers * Corporations * Courts * Amateurs * Security * Attorneys * Kim Kardashian * Doctors *Gardeners * Athletes * Investigators * Ministers * Parents * Landscapers * Movie Trailers * Librarians * Dentists * Fireman * Museum Curators * Designers * Rabbis * Choreographers * Housewives * Mailmen * Engineers * Shoppers * Travelers * Scientists * Carpenters * Singers * Dancers * Teenagers * Salespeople * Electricians * Travel Agents * Dog Groomers * Architects * Farmers * Accountants * Restaurants * Photographers * Consignment Stores * Stylists * Churches * Snowboarders * Supermarkets * Jewelers * Gymnasts * Department Stores * Associations * Collectors * Animal Trainers * People Who Are Bored * Psychics * Homeland Security * CDC * POTUS * Do It Yourselfers * Comedians * Musicians * Truckers * Fairs * State Parks * Swimming Pool Dealers * Book Reviewers * Surgeons * Counselors * Magazines *Jon Gosselin * Caterers * Furniture Sales * Al Qaeda * Yellow Pages * Florists * Hotels * Maid Service * Insurance * Schools * Magicians * Brokers * Tattoo Artists * Video Gamers * Banks * Service Announcements * Consultants * Decorators * Apartment Managers * to be cont’d…

YouTube – US Users Demographics

3%19%

35%23%

19%

Age

3-11 12-17 18-3435-49 50+

51%49%

Gender

Male Female

“YouTube U.S. Demographics.” Quantcast, May 2008. www.quantcast.com.

YouTube – US Household Demographics

$100k+

$60-100k

$30-60k

$0-30k

0 10 20 30 40

Household Income

47%

40%

13%

Education

No College CollegeGrad School

“YouTube U.S. Demographics.” Quantcast, May 2008. www.quantcast.com.

Who Are YouTubers?

YouTube is currently available in 19 regions across the globe and multiple languages.

Countries: United States, Japan, United Kingdom, Italy, Spain, Netherlands, Ireland, France, Poland, Brazil, Canada, Mexico, Australia, Hong Kong, Taiwan, New Zealand, Germany, Russia and Korea

Languages: English (US and UK), Japanese, Korean, Russian, Italian, French, Spanish, Dutch, Polish, Portuguese, Chinese (traditional), German

Where is YouTubeUsed?

Uploads by Language

English 48.1%Spanish 13.6%Dutch 3.9%German 2.9%Portuguese 2.9%

Uploads by Country

USA 34.5%UK 6.9%Philippines 3.9%Turkey 3.4%Spain 3.4%Canada 3.0%Germany 2.6%France 2.6%Mexico 2.6%Australia 2.6%

http://mediatedcultures.net/ksudigg/?p=163

Competitors Launch Date Ownership Services Provided Availability

Metacafe Jul-02

Privately held by Accel Parners, Benchmark Capital, 

Similar to other video sharing websites but what  English and Spanish 

   DAG Ventures, and Highland Capital Partners 

differentiates Metacafe from other competitors is its   

     duplication elimination, community member review   

     panel, VideoRank, and Wiki-editing metadata    

Flickr Feb-04Owned by Yahoo!Inc. Used as an on-line video hosting website with a 

Arabic, Chinese (traditional), English (original), French, 

   on-line community platform. Service is recognized for

German, Italian, Korean, Portuguese, and Spanish 

     its wide use of bloggers as a photo repository where  

     users post photos from their cameras or PCs to their  

      accounts for blogging purposes.  

Google Video Jan-05Owned by Google Geared towards providing a large archive of free 

Localized for Australia, Canada, Peoples Republic of 

     searchable videos, aims to distribute commercial and

China, France, Germany, Italy, Netherlands, Poland, 

     professional media, educational discourses, as well Spain, UK and USA

     as media companies that provide content for purchase  

Veoh Feb-07Major Investors include Time Warner, Michael 

Internet service that allows users to find and view 

Controversially made services unavailable to most 

   Eisner's Tornante Company, Spark Capital, Intel, 

major studio content from such providers as CBS, ABC,

markets (i.e. Africa, Asia, Central and South America, 

    and Goldman Sachs the WB, US Weekly and TV Guide, independent

and Central and Eastern Europe  

     productions are available as well as user generated  

      material   

Hulu Mar-07Owned by NBC Universal (27%), Fox 

Offers commercial supported streaming video of 

Content only available in US due to cited licensing 

 Entertainment (27%), ABC Inc (27%), and

tv shows and movies from NBC, Fox, ABC (including reasons. 

 Providence Equity Partners (19%)

the Disney Group), provides videos in Flash Video   

   format and high definition format of 480p, provides   

   web syndication of services for AOL, MSN, MySpace  

     Facebook, Yahoo!, and Comcast's fancast.com   

Competitors Launch Date Ownership Services Provided Availability

You Tube vs. FacebookWhat is the wiser marketing venue?

you tube.com/age facebook.com/age0%5%

10%15%20%25%30%35%40%45%50%

3 to 1112 to 1718 to 3435 to 4950+

www.codelathe.com

Rank 2009 Rank 2008 Employer2009 Brand value

($millions)

2008 Brand value

($millions)

Percent change

(%)

Country of Ownership

1 1 Coca-Cola  68,734  66,667  0.03 U.S.

2 2 IBM  60,211  59,031  0.02 U.S.

3 3 Microsoft  56,647  59,007  -0.04 U.S.

4 4 GE  47,777  53,086  -0.1 U.S.

5 5 Nokia  34,864  35,942  -0.03 Finland

6 8 McDonald's  32,275  31,049  0.04 U.S.

7 10 Google  31,980  25,590  0.25 U.S.

8 6 Toyota  31,330  34,050  -0.08 Japan

9 7 Intel  30,636  31,261  -0.02 U.S.

10 9 Disney  28,447  29,251  -0.03 U.S.

Top 10 of the 100 Best Global Brands

www.buisnessweek.com

The Virtue Top Social Brands

Established to help bring credibility and clarity to this emerging social media space

The Vitrue 100 is the result of Vitrue’s daily analysis of over 2,000 popular brands

Each day, Vitrue analyzes the online conversations on a variety of social networking, blogging, microblogging, photo and video sharing sites

The Vitrue SMI calculates scores about the brand’s social conversations. A series of algorithms are applied to reflect the frequency of usage, the

size of the social media environment, and the magnitude of the conversation.

The result is a single numeric score for each brand: the Vitrue Social Media Index (SMI).

The two most common uses are:1. Tracking movement of a single brand over time2. Comparing a brand with its competitors, either at an individual

point in time or over a period of weeks or months The changing world of online conversations results in significant

movements up and down for brands

The Virtue Top Social Brands iPhone

CNNAppleDisneyXboxStarbucksiPodMTVSonyDellMicrosoftFordNintendoTargetPlayStationMacTurnerHewlett-PackardFox NewsBlackBerryABCCokeLGBest BuyHonda

PorcheEbay FoxIntelIBMVH1MLBCiscoOracleSaturnSpriteSubaruAdidasBPAMCChili’sThe GapCapital OneHyattCostcoKFCAdult SwimJet BlueTaco BellConverseSiriusPumaSears

SharpLincolnNBAPepsiGeneral MotorsMcDonald’sGeneral ElectricWalmartNFLMercedesBMWSamsungNikeSubwayDodgePandoraCBSMercuryNBCDisneylandlast.fm ToyotaCadillac

Jeep

NetflixNascarSuzukiRed BullWendy’sBurger KingVolkswagenREINissanT-MobileVerizonMacy’sAT&TGuessVictoria’s SecretWalt Disney WorldAudiTBSCartoon NetworkIKEASEGAKiaChevy

http://vitrue.com/blog/2009/01/29/the-vitrue-100-top-social-brands-of-2008/

www.youtube.com

You

So do 123 million other people

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Marketing the YouTube WayExamples

EVERY DAY

Juxtapoze Local rock band from Frankfort, KY

Interviewed Chad Hupp

Target Market: young to old, poor to rich

Do not use social media as a way to market the band, but more so as a way to keep in contact with fans.

Secured fan base in Frankfort, Lexington, and Louisville

Band still hand delivers demo cd’s for promotional purposes.

http://www.youtube.com/watch?v=2XQTocaKQkE&feature=related

http://www.myspace.com/juxtapoze79

RE/MAX

Real Estate Industry

RE/MAX International oversees a network of more than 100,000 agents in more than 65 countries with more than 7,000 offices

RE/MAX is a clear leader in the real estate markets in Europe, USA, Canada and most competitive markets worldwide

RE/MAX target and motto is to “Enable Everyone to Win”

RE/MAX is the only real estate company in the world that has had the privilege to be included in the book “50 Companies That Changed the World”.

http://www.youtube.com/watch?v=BqBcl-EQ_q0

Kentucky State Government

‘About Kentucky’ Weekly Commentary

Target Market: 4,269,245 Residents and 267,000 Employees of Kentucky 18+

Service provides up to date information of political agendas, educational material, resources available, and hot topics within the state.

Cost efficient mean of providing widespread continuous announcements.

http://www.youtube.com/watch?v=dUuF0-Zl8UY&feature=SeriesPlayList&p=DE6DA43C4FF66CD6

The End