YouTube is a video sharing website with over 1 billion active users each month. It allows users to upload, view, and interact with videos. The top industries that use YouTube marketing are beauty, technology, toys, food, music, education, and gaming. Major companies like Microsoft, Apple, Dove, L'Oreal, McDonald's and Coca Cola use YouTube effectively. Industries that likely benefit are those requiring product demonstrations while those unlikely to benefit include books, clothing, and office supplies. Risks of YouTube marketing include offending viewers and negative publicity from failed campaigns. Learning from other's mistakes is important for effective YouTube use.

1. By: BreAnna Lees Coryn Duvall
Katlin Patterson Dan Nguyen

2. What is YouTube?
YouTube is a video-sharing website that allow it’s users to:
 Upload their own videos
 View other videos on the website
 Subscribe to other channels
 Like, share, and comment on videos

3. YouTube Stats
 About 1.3 billion active users
 Videos watched monthly: 6 billion hours of video
 30 million visitors each day
 Users can navigate the website in 76 languages
 80% of 18-40 year olds view YouTube each month

4. User Demographics
 55% male
 45% female
 80% of views are from visitors outside of the U.S.
 Users include: teens, moms, companies, streamers,
gamers, television programs, sports fans, lifestyle
vloggers, etc.
 Most users are ages 25-34

5. History of YouTube
 Launched: February 14, 2005
 First upload: April 23, 2005
 Founders: Chad Hurley, Steve Chen, Jawed Karim
 Purchased by Google for 1.65 billion in stock on
November 13, 2006

6. User Benefits
 People visit YouTube for various reasons such as
watching entertaining or educational videos.
 The recommendation system can suggest similar
or related videos.
 Available in almost every country worldwide.
 Most of the content is free for users.
 The search engine easily allows users to search for
content.

7. How Does YouTube Make Money?
 One way is by using SERP Advertising, this is an
advertisement that usually appears at the top of a viewers
search results. Advertisers then pay YouTube based on the
umber of views received.
 Another way is through Landing page ads, this is when a
consumer visits YouTube’s home page. Advertising
companies pay based on a combo of views and clicks. This
is the highest viewed ad space on YouTube.

8. How Do YouTube Users Make Money?
 Earning money on YouTube happens when consumers engage
through their views and view various ads that YouTube has
chosen.
 Consumers can get paid off of the kind of audience viewing
their video, the type of ad they watched, the worth of that
particular advertisement, and audience retention.
 It has been estimated through Penna Powers, that an average
of 15% of viewers actually see the ads. This is because of the
skip ad button and due to the fact that not all consumers pay
attention to ads.

9. Sponsorships
 The revenue that creators receive from ads can
be almost non-existent for videos that don’t
receive hundreds of thousands of views.
 YouTube creators will often turn to brand
sponsorships to boost their income.
 This works by companies paying creators in
exchange for them mentioning their
product/service.
 Some of these companies include subscription
services, beauty products, electronics, etc.
An example of a video sponsored by Kia Motors

10. YouTube Is a Valued Marketing Tool
 YouTube has already become an everyday part of consumers
lives. The video’s earn money by YouTube placing ads on various
videos at different times.
 YouTubers can choose to enable monetization. Their videos need
to be submitted and then approved for monetization.
 This makes money for YouTube and YouTubers without charging
people for it. YouTubers get paid per click through
advertisements being viewed.
 YouTuber’s also get paid through cost per impression, which is
when an advertising company must pay $2 for every 1,000
impressions of their ad.

11. How This Affects User Experience
 This exposes viewers to more and more ads.
 The average daily intake of ads is already high
as it is at 5,000.
 Almost every YouTube viewer has a YouTube
account themselves. Whether they go viral or
not and make money is a whole different realm
of what YouTube has to offer.
 Consumers who use YouTube expect to see
multiple advertisements when engaged. Most
viewers tune out the ads.

12. How Is YouTube Useful In Marketing?
Useful in allowing users to:
• Demonstrate products
• Create community
• Demonstrate expertise
• Save bandwidth
• Show the brand’s personality
• Advertise events/promotions
• Solve customer problems
• Create customer testimonials
• High traffic volumes

13. Which Industries Use YouTube The Most?
Beauty
Technology
Toys
Food
Music
Education
Gaming

14. Major YouTube Success
• The Ellen Show
Although the Ellen DeGeneres Show is not a company, YouTube segments and promotes her
show into videos daily.
• Red Bull
Red Bull has more than 4 million subscribers and approximately one billion views in six years.
Their successful commercials include daredevils, risk-takers, thrill-seekers and activities
such as race car driving, snowboarding, and biking.
• Android
In 2015, Android’s “Friends Furever” video gained immense popularity by viewers sharing the
video over 6.4 million times. The video shows the most unlikely animal pairing of friends.
• Dove
Dove’s “Choose Beautiful” ad gained popularity by focusing on the company’s mission rather
than a specific product making it one of their most successful advertisements. In this
commercial, Dove has participants enter one of two doors labeled “beautiful” or “average”.
After entering, participants were asked why they chose the door they entered through. Dove
believes this tactic was successful by making women feel important, leading to brand loyalty.

15. Major YouTube Fails
 Hyundai
Last year Hyundai released a commercial on YouTube that offended
many consumers. The “Pipe Job” commercial showed a man
attempting suicide by breathing in exhaust fumes while he had his
garage door shut. But at the end of the commercial the man was
unsuccessful with his suicide because he owned a Hyundai ix35. This
cars tail pip puts of water vapor.
 Mountain Dew
This year Mountain Dew posted an ad on YouTube called “Felicia the
Goat”. This commercial has had a horrible backlash, consumers say
this commercial was very racist. The commercial included many
racial stereotypes and also showed domestic violence. This video was
deleted from YouTube.
 Quiznos
Quiznos had a YouTube fail in 2009. They released a spoof of “2 Girls, 1
Cup” called “2 Girls, 1 Sub”. This very raunchy commercial did not do
well and Quiznos released at statement that the two videos were not
related. Consumers were not convinced.

16. The Risks
 Receiving criticism and having to make a public apology and revoke an
ad.
 Offending certain groups of consumers and gaining bad publicity.
 There isn’t much control of how a brand ambassador presents your
product.
 Competition is everywhere, if your company is using YouTube for
marketing your competition most likely is also.
 Negative reviews.

17. What we can learn from others mistakes
 How to apologize
 How to engage with consumers
 How to not be offensive
 Proofread
 Some ideas aren’t worth the mistake
 Keep your feet on the ground, don’t do something too big in the beginning of your
advertising campaign.

18. Which Companies Use YouTube Effectively?
• Microsoft
• AppleTechnology
• Dove
• L'OréalBeauty
• McDonald’s
• Coca ColaFood

19. Which Industries May or May Not Benefit From
YouTube Marketing?
Industries likely to benefit include:
• Niche companies
• Small businesses due to low advertising costs
• New companies in need of product recognition
• Products that require demonstration
• Examples include technology such as
GoPro, Drones, and mobile devices along
with beauty products such as makeup,
hair products, and skincare.
Industries unlikely to benefit include:
• Companies that do not require product demonstration such as:
• Books
• Clothing
• Flatware
• Office supplies
• Examples include pens, paper, post-it notes, staples, etc.

20. Works Cited
https://smallbiztrends.com/2015/02/successful-advertising-campaigns-youtube.html
https://blog.hubspot.com/marketing/lovable-video-marketing-campaigns
http://www.522productions.com/5-examples-of-brand-fails-on-youtube
http://www.videopower.org/how-many-views-to-make-money-on-youtube/
http://www.quora.com/How-much-does-YouTube-pay-per-subscriber
http://www.reelnreel.com/youtube-monetization/
http://www.investopedia.com/articles/personal-finance/053015/how-youtube-makes-
money-videos.asp
https://fortunelords.com/youtube-statistics/
https://www.socialbakers.com/statistics/youtube/
http://www.socialmediatoday.com/social-networks/top-social-network-demographics-2017-
infographic
https://viralwoot.com/blog/social-media-stats-2016/