1. INTM 427: E-commerce in Marketing & Supply Chain Networks
“YouTube”, TEENAGER OF THE INTERNET
Prepared by,
Rohit G. Vaze
rvaze@hawk.iit.edu
2. INTM 427: E-commerce in Marketing & Supply Chain Networks
Problem Definition
• Increasing strength of the competitors in the video sector
• Companies doubting the effectiveness of advertising on YouTube
• Memories of Facebook knocking out Orkut
Agenda
• To put forward YouTube’s recent performance
• To put forward YouTube’s capabilities to sustain in the competitive market
• To present facts & stats which would help to retain TRUST of the ADVERTISERS
• A word on YouTube’s future
3. INTM 427: E-commerce in Marketing & Supply Chain Networks
YouTube’s Value Proposition
For Users For Advertisers
• Availability: 24x7
• Live streaming
• Earning: A share of
cost/click (CPC)
• A platform for targeted
advertising
• YouTube Analytics
• A platform to reach 1.6
billion people
4. INTM 427: E-commerce in Marketing & Supply Chain Networks
Revenues
• YouTube < Google LLC < Alphabet Inc.
• www.statista.com
• Net advertising revenue of Google
from YouTube in the United States:
0
0.5
1
1.5
2
2.5
3
3.5
2015 2016 2017 2018
Year Revenue (in billion $),
United States
2015 1.68
2016 2.16
2017 2.59
2018 2.89 (estimated)
5. INTM 427: E-commerce in Marketing & Supply Chain Networks
Earnings of a video publisher
An Effective tool to estimate the earnings: https://youtubemoney.mes.fm/
6. INTM 427: E-commerce in Marketing & Supply Chain Networks
Advertising on YouTube
Affordable to all: Base rate of $10/day
Ways of advertising
• Search ads
• Side ads
• Banner ads
• Skippable/Non-skippable ads
7. INTM 427: E-commerce in Marketing & Supply Chain Networks
Successful ad campaigns on YouTube
• Revzilla.com: An e-commerce website, based in Philadelphia, Pennsylvania
• Sells: Motorbike accessories, like biking jackets, helmets, etc.
• Its commercials have 7 million views and the company has seen a 50% increase in revenue by
advertising on YouTube
8. INTM 427: E-commerce in Marketing & Supply Chain Networks
Power of the platform
From “Waman Hari Pethe” Jewelers, Headquartered in Mumbai
(to)
“Tiffany & Co.”, Headquartered in the New York City
9. INTM 427: E-commerce in Marketing & Supply Chain Networks
Google official merchandise store
• Part of Google’s E-commerce
• Sell under the brand names: Google, YouTube, Android, Waze
• Delivers in 48 hours
• Website: https://shop.googlemerchandisestore.com/Google+Redesign/Shop+by+Brand/YouTube
10. INTM 427: E-commerce in Marketing & Supply Chain Networks
Future of YouTube
• Number of YouTube users is expected to be 1.86 billion till 2021
• Millennials will prefer YouTube over cable TV
• Expansion of YouTube Red
• Increase in users + Expansion of Network = More scope for Advertisement
India, a huge market:
“POPULATION + CHEAP DATA PLANS”
• Population: more than 1.3 billion
• JIO 4G data plan: 84 GB 4G data for 28 days at a rate of 299 INR, nearly equals
84 GB 4G data/month at a rate of $5/month
11. INTM 427: E-commerce in Marketing & Supply Chain Networks
Challenges
• Copyrights
• Privacy
Case:
• YouTube deleted the channel of ‘Logan Paul’ a YouTube star
• He had posted a video of hanging body of a suicide victim, certainly a video
inappropriate for majority users
12. INTM 427: E-commerce in Marketing & Supply Chain Networks
Take-aways
• 2nd largest search-engine
• 300 hours of video uploaded each minute
• 5 billion videos are viewed each day
• YouTube Live: Trusted by big names like ‘NASA’ for live streaming
• Even the competitors use YouTube as a platform for advertisement
• 360 ̊ Video
• Begin to advertise at $10/day
• Earn $1.36 to $3.40 with every 1,000 views
THANK YOU…!!!
