Marketing case study about youtube

7/25/2019 Marketing case study about youtube

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YOUTUBERS: A NEW WAY TO TARGET THE RIGHT COSTUMERS

YouTube is the second-largest search engine in the world, trailing only Google.

There are over two billion videos streamed every day. When the three former

employees of PayPal registered on February ! of "##!, the domain

Youtube.com, the never imagined that # years later this platform would be

the most used in the world and that its creation would change the lives of

thousands of people.

Background

$n "##!, in the middle of a dinner party, %had &urley, 'teve %hen, and (awed

)arim came with the idea of create a platform where the people could share

videos of their special moments. The website was developed month by month

and it only too* + months to be released to the public. t was so popular, that

one year latter Google, one of the biggest companies in the world, paid .+!#

millions, after failing in the creation of a similar platform. nd with /ust a few

months of being lunched, the website reach around !# millions of daily visits.

The growth of the company was fast, but the 0uestion that was on the minds

of every one was how the search giant would ma*e money from its video site1

The solution came in ugust of "##2, when the company started showing

advertising banners in the bottom of the screens.

$ver the years, Google has reali3ed that using the platform to promote small

and large companies would bring great benefits, which is why it has adapted to

reach all corners of the world and has made several researches to find out

about the true impact they can have on the mar*eting world. n some of their

e4plorations, they found that not only banners and advertising campaigns can

influence the behavior of people, but also members of the community can do

great things with the simple use of a camera.


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Using YouTube o !arke business

%ost-per-view 5%P67 is one strategy that Google is using to attract business.

The ob/ective of this tactic is that each company set the price they will pay for

theit dWords video ads. 8usiness can set the ma4 %P6 bid when setting up

their campaigns as they select their targeting groups. They can select a default

ma4 %P6 bid for all ads associated with a targeting group, or define an

individual %P6 bid per every True6iew video ad format 5which means that the

viewer had the possibility to s*ip the advertisement after five seconds7. The

more targeted the audience, the country they are targeting, and the view rate,

are some of the factors that affect the %P6 cost.

With this strategy present, YouTube is reaching more acceptance between

companies as it lets businesses show their products in action to the customers

before they buy them, which means that the people that use the products after

seen the videos, are the ideal costumers, those ones that really will bring

benefits. This is particularly useful for companies with limited physical

distribution channels, including those who mostly sell over the nternet. lso

because it wor*s as a powerful tool to share and engage with customers,

because the platform gives them the possibility to share directly with each

company, their doubts, concerns, and opinions that can add more value to the

brand.

'ome businesses use YouTube to provide solutions for their customers.

video can be a great way to address a fre0uently as*ed 0uestion or help

troubleshoot common problems with the product. t is better e4plain to the

customers how to deal with an issue and showing them precisely the steps

they have to follow, rather than letting the mar*et do it for the company and

critici3e the product in the process.

study from 8oston-based content-sharing 'hareaholic, shows YouTube

potential impact in the difficult tas* of engage new and maintain old

costumers9


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YT drives the most engaged traffic. These referrals have the lowest average

bounce rate (43.19%), the highest ages er visit (!.99) and the longest

visit duration (!!".#! seconds). $h are visitors from YouTube so

engaged& 'ecause viewers are liel to maintain a similar level of

engagement with related content. Therefore, video watchers are eseciall

recetive to lins within video descritions, which comlement the

audiovisual content the ust consumed. *nother reason YouTube taes

home the crown is because viewers are siml used to sending minutes +

erhas, hours + educating and entertaining themselves with awesome

video and ma have fewer ualms about taing e-tra time to discover more

great content ostclic.

/ource0 https9::blog.shareaholic.com:social-media-traffic-engagement-#;-

"#


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T"e rise o# YouTube $%oggers

The e4pression vlogger is an association between the word video and blogger.

vlogger, also *won as YouTuber, is a person who uses videos as their

vlogging platform, using images and sound instead of te4t to provide their

reviews on a certain sub/ect. 'ince the rise of their popularity in "##! many

corporations are ta*ing up vlogging to drive customers to their site or increase

sales.

The e4isting vloggers can wor* li*e celebrity endorsers, consumers> trust on

their opinion when they give attention to the products. f a brand feels li*e it

could benefit from a social boost, a vlogger can give this. For this to wor* well,

the type of followers the vlogger has on their social accounts needs to be

suitable for the brand. Which means that, if the vlogger has ama3ing figures

5some with over million Twitter followers7, a social bu33 around the brand

would increase engagement.

clear illustration of this is ?oella 'ugg. The

content of her videos ranging from ma*eup and

hair tutorials, to tips for overcoming panic attac*s

and an4iety. 'he is so appreciated between her

fans that in a # minutes video, se can garnered

more tan " million views. The 2.+ million

subscribers on YouTube, ;.#@ millions followers in Twitter, < millions on

nstagram and ". millions li*es on Faceboo*, /ust show that 'ugg can deliver

an audience far beyond what brands can hope to e4pect from their own viral

videos.

lthough, because vloggers will give the brand a human faceA it ma*es it more

relatable for the consumer. t feels more personal to them and will ma*e it

easier for them to move to a purchase. They feel li*e they are buying from an

individual not for a business.


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nother way of creating content is to invite vloggers to e4perience the brand in

a e4change for a brand featured video blog. For e4ample, the B) branch of

)ellogg>s )rave cereal loo* for those YouTubers that can help them create cool

content to their audiences. $ne of the YouTubers invited was %arry Fletch, a

well *now B) vlogger and sister of Tom Fletcher, a member of one the biggest

bands in B), Cc8usted.

The idea of the challenge was that )ellogg>s ships a )rave %hallenge *it to

some popular YouTubers. Dach challenge

was funny, ridiculous and personali3ed E

appealing to a particular interest or talent

of the YouTuber. fter completing the

challenge on video, each YouTuber invites

his or her audience to complete a similar

challenge and tweet about it for a chance

to win various pri3es. The YouTuber tags a friend who is also doing a )rave

%hallenge, so the audience can find more hilarious )rave content.

dditionally, 6loggers can also put a lin* to the corporate website in the

description bo4 or lin* their name to the brand. When following this strategy it

is important to choose a vlogger that is relevant to the brand, both in content

and audience.

n alternative aspect to consider is that with a piggybac* strategy the brand is

not in charge of the video content. t is up to the vlogger in what way it will

give the brand attention. t can even affect the brand later E same as with

celebrity endorsement E when the vlogger receives negative media attention.

Bnfortunately, wor* with vloggers can be a problem, if the companies that

partner whit them don>t have clear the regulations that control this type of


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advertising. D4ample of this the problem between $reo and the dvertising

'tandards uthority 5'7

The case involved popular and well-

*nown YouTubers an &owell, Phil

ester. They were recruited by $reo and

paid to create promotional $reo>s

videos. The vloggers created videos

showing their $reo Hlic* racesI. The

vloggers did ma*e it clear that $reo was involved with the campaign, by for

e4ample saying, H$reos as*ed me to ta*e part in a Hlic* raceI, and e4plaining

that they had been given free $reos.

The ' did not agree that the Hfree $reosI messages were enough to disclose

the commercial, paid for, relationship between the YouTubers and $reos and

upheld the complaint and as*ed that the content wasn>t shown again in its

present form.

For this reason, ' has held that, where an

advertiser is paying a vlogger to create content

and say something about their brand, and the

advertiser has 5at least some7 aspects of

editorial control over the content, then there will

need to be a clear and prominent statement such as HPaid advertisementI or

HdvertorialI. The ' has not mandated any particular wordingA anything

that clearly indicates the nature of the commercial 5and paid7 relationship

between the advertiser and the vlogger will suffice, formal language or not.

f done right, a product can be e4posed to a huge following that might not

have *nown the brand before. lso, it ma*es for perfect video content for the

brand to use as they wish. What is tric*y is to define what type of vlogger is

suitable for the brand.


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&uesions

. Which mar*eting problems does brands have to anticipate when partner

YouTubers1'( What values:benefits can YouTubers transfer to their partners besides the

ones named here1)( o you thin* is necessary that the world begins to regulate this type of

mar*eting1 nd ma*e them stricter1

BIB*OGRA+HY

le4ander, . 5"#


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8lurring advertising and blogs E why it pays to *now the ad rules. 5"#;,

Jovember ;7. Ketrieved pril , "#!, from http9::asa.org.u*:Jews-

resources:Cedia-%entre:"#;:8lurring-advertising-and-

blogs.asp4L.6'*!ds


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Weit3*orn, . 5"#!, (anuary !7. &ow brands can harness the new age of

celebrity. Ketrieved pril , "#!, from

http9::wallblog.co.u*:"#!:#:#O:how-brands-can-harness-the-new-age-of-

celebrity:

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Marketing case study about youtube