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YouTube for Business 2012

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					                                         Contents
Introduction ...................................................................................... 4
YouTube Now and in the Future ........................................................... 6
  YouTube is Already a Market ............................................................ 6
  YouTube is Part of Three Key Trends ................................................. 8
  YouTube will Develop in Some Predictable Ways ................................. 9
  Google's Purchase of YouTube is Good for Marketers ......................... 11
Who Uses YouTube Today? ............................................................... 14
  An Overview ................................................................................. 14
  Good News if You Target Teens and Young Adults ............................. 16
  Figuring Out what they Want .......................................................... 17
  Teens and Young Adults are Different .............................................. 17
  Teens and Young Adults aren't the Whole Story ................................ 18
  How YouTube's Demographics will Change ....................................... 19
Why do they visit YouTube? .............................................................. 21
  What draws visitors to YouTube? .................................................... 21
  Sometimes, YouTube is what You Do ............................................... 24
  Referrals are Powerful ................................................................... 24
  A Mix of Cross-Referrals: Lessons from a Band ................................. 25
  User-Generated Content Referrals ................................................... 25
  I want My TV ................................................................................ 25
  Big Lessons .................................................................................. 25
What do they like about the Site? ...................................................... 27
  YouTube has Great Content. ........................................................... 28
  YouTube makes it Easy to Find and View Great Content. .................... 29
What videos do they choose to watch? ............................................... 33
  Two Goals .................................................................................... 33
  What Kinds of Video YouTubers like Most ......................................... 33
  Factors in Choosing a Video to Watch .............................................. 37
  Recommendation: The Most Important Factor .................................. 38
  Ways that Recommendation Works ................................................. 39
How they Use YouTube: Typical Sessions ............................................ 40
How they Use YouTube: Typical Sessions ............................................ 40
  Frequency of Usage ....................................................................... 40
  When they Watch.......................................................................... 41
  Where they Go ............................................................................. 43
  On the Watch Page ....................................................................... 47
  After the First Video ...................................................................... 48
The YouTube Community .................................................................. 50
  Communities, in the Physical World and Online ................................. 50
  YouTube: The Community .............................................................. 50
  The YouTube Community is Defined by Actions ................................. 51


                                                                                                   1
  How Marketing into the Community is Different ................................ 53
YouTube Channels ........................................................................... 56
  Channels Today ............................................................................ 57
  Brand Channels Today ................................................................... 59
  Making Brand Channels Work ......................................................... 61
Advertising on YouTube .................................................................... 65
  What YouTube Users think of Advertising ......................................... 65
  YouTube Ads ................................................................................ 65
  Other Advertising on YouTube ........................................................ 67
  Ad Placement ............................................................................... 68
  YouTube and Video Advertising in the Future .................................... 68
Marketing Using YouTube.................................................................. 70
  The Fundamental Things Apply ....................................................... 70
  Video is Central ............................................................................ 71
  Word of Mouse is Crucial ................................................................ 71
  The Community is in Control .......................................................... 72
  Integrated Programs will Work Best ................................................ 73
Using YouTube for Mass Marketing ..................................................... 74
  Your Challenges. ........................................................................... 74
  Give them What they're Used To ..................................................... 74
  And Then Give Them More ............................................................. 75
  Involve them with Contests ............................................................ 76
Using YouTube to Reach the Niche Markets ......................................... 77
  The Challenges of the Long Tail ...................................................... 77
  Search is Key ............................................................................... 78
  Video should be Helpful ................................................................. 79
Using YouTube to Reach Business Customers ...................................... 80
  B2B is Different from Consumer Marketing ....................................... 80
  Services and Outsourcing: Martello Limited ...................................... 80
  Products: Specialty Screw .............................................................. 81
  Software: Giants and Others .......................................................... 81
  Business Documentaries and More .................................................. 82
Using YouTube if you're a Smaller Business ......................................... 83
  Tie YouTube Video to Promotions .................................................... 83
  Television Ads on Demand ............................................................. 83
  Drive Traffic to a Web Site ............................................................. 84
  Generate Advertising Revenue ........................................................ 84
  Professional Services ..................................................................... 84
  Key Points for Small Businesses ...................................................... 85
Using YouTube to Increase Business from Existing Customers ............... 86
  Defuse the Danger Zone ................................................................ 86
  Support Dealers ............................................................................ 87
  Part of the Action .......................................................................... 87
  Dell and IBM Choose Different Paths................................................ 88


                                                                                                2
Using YouTube for Market Research ................................................... 90
  The Social Media Era ..................................................................... 90
  A Social Media Example ................................................................. 90
  YouTube in the Social Media Era ..................................................... 90
The Future of YouTube ..................................................................... 92
  Competition will Increase ............................................................... 93
  YouTube will Change ..................................................................... 93
Conclusion ...................................................................................... 95
  YouTube is a Practical Tool that You can Use Now ............................. 95
  YouTube is an Evolving Tool ........................................................... 95
  Get to Know YouTube .................................................................... 96
  Consider Different Ways to use YouTube .......................................... 96
  Tie YouTube Activity to your Marketing Plan ..................................... 97
  Getting Started ............................................................................. 97
Appendix: Getting to Know YouTube .................................................. 99
  Read More about YouTube.............................................................. 99
  Individual Adoption Patterns ........................................................... 99
  The Novelty Phase ...................................................................... 100
  The Mature Exploration Phase ....................................................... 100
  Strategy Phase ........................................................................... 101
Appendix: Creating Video for YouTube .............................................. 102
  What's Your Marketing Goal ......................................................... 102
  Video Basics ............................................................................... 102
  Creating Video ............................................................................ 103
  Mining Your Video Archive ............................................................ 104
Appendix: YouTube Contests ........................................................... 105
  YouTube Makes it Easy ................................................................ 106
YouTube Tips, Tricks and Traps ....................................................... 107
  Tricks ........................................................................................ 109
  Traps......................................................................................... 110
Quick Start Guide .......................................................................... 111




                                                                                                   3
                                    Introduction

Forbes magazine says that YouTube generates over a billion views per day. To put that in
perspective, in the time it takes you to finish reading this page YouTube users will view
around a quarter of a million videos.

An audience this size is hard to ignore. In our work with clients we searched for studies
about this audience and what one can do to reach it as part of a marketing program. When
we established there was little that has been published we decided to create it. After all,
Entertainment Media Research was founded over a decade ago by the former head of music
information for MTV Europe with the belief that the coming digital revolution would bring
together the worlds of entertainment and marketing.

With entertainment expertise and quantitative research skills we serve entertainment,
media and consumer businesses around the world from our base in London and are
therefore ideally positioned to study the impact and opportunities that YouTube has come to
offer. We started by undertaking a comprehensive audit of usage, attitudes, and
preferences of YouTube users in a robust online survey of 1,758 US residents. The sample
was then weighted to the demographic representation of the US online population. We then
applied the findings from this proprietary research to inform our YouTube User Guide and in
doing so, remove wherever possible assumption from the marketing process. YouTube
Revealed: a marketer's guide to understanding and making the most out of YouTube.

Our primary objective in writing this report is to help marketers sharpen their understanding
of the YouTube phenomenon, grasp the marketing implications and flatten the learning
curve to putting this knowledge to highly effective use. The User Guide therefore combines
detailed practical advice at the functional How To level, with strategic thinking and
background information. Here's a brief overview of what you'll find in the User's Guide.

YouTube is already a place where many kinds of businesses are starting to promote their
wares so we begin with a review of how YouTube was founded and developed. But YouTube
is developing fast, as changing demographics and evolving possibilities make it a place that
is even more attractive to marketers of all kinds. Of course, teenagers and young adults are
the dominant users right now but they're far from the whole story. We fully expect YouTube
to change to such a degree that over the next three years its demographics will more
closely match the online population as a whole. Every marketing-driven business needs to
understand this market-place and how best to exploit it before its competitors.

The key marketing objective is to achieve a viral impact through user recommendation or
"word of mouse." This is much easier said than done so we detail why and how people come
to YouTube today, what are their primary reasons and how this is changing as the
demographic usage mix inevitably changes. We identify the most popular types of video by
demographic and we review the controllable and non-controllable factors that affect viewing
of a particular video.

We move on to review the patterns of typical YouTube sessions. We cover what the "Watch
Page" looks like along with advertising possibilities to ensure you get the most out of the
available feedback. We analyze what happens after a YouTube visitor has watched a video
and then recommend how you should structure your content to exploit this trend and
optimize your opportunities for engagement and branding.




                                                                                              4
Much has been made in the mainstream media about the YouTube community. We cover
some of the ways that marketing into this community is uniquely different. We will suggest
to you that brand channels are an effective way to concentrate your marketing efforts on
YouTube. In our chapter on channels we look at the place of channels on YouTube today
and how to make your brand channels work most effectively. We review what YouTube
users think of advertising on YouTube and what some of your options are today. Those
options are bound to change as YouTube seeks more ways to make the site profitable.

Throughout the report we share key insights on how best to apply your marketing skills to
YouTube whilst pointing out where the fundamental principles still apply. People or
businesses who buy your product or service will still buy for the same reasons they always
have. The marketing research you've done about important benefits and messages will still
be relevant; only the environment of YouTube will be different.

On YouTube, video is central. You will therefore discover ways to use video to build
awareness, convey benefits, and support sales and service. On YouTube, word of mouse is
crucial and the community is in control. We know that integrated marketing programs that
tie YouTube marketing efforts to other marketing and branding efforts are generally the
most successful so we‟ll show how best to facilitate the process.

YouTube offers marketing challenges and opportunities for everyone. Giant companies like
3M, Nestle, and IBM are already using it as part of their marketing and so are individual
service firms. Whether it's the mass market or the farthest end of a long tail, you have the
opportunity to derive important marketing benefits from YouTube. As there are special
challenges for different markets and companies, we offer suggestions about how to adapt
your use of YouTube for different kinds of businesses. There are chapters for B2B marketers
and small businesses as well as chapters on ways to use YouTube to improve your
relationship with existing customers and ways to use YouTube for marketing research.

We close the User's Guide with a look at the future of YouTube and recommendations about
what you should consider implementing. Now, let's get started with "YouTube Now and in
the Future."

There's one more thing before we go on. If you aren't yet familiar with YouTube, just
reading about it won't be nearly enough. You need to spend time familiarizing yourself
with what it is and how it‟s changing. You'll also pick up ideas from other marketers who are
already using the site.

Throughout this User's Guide, we'll offer suggestions about what to look for. They're
collected in the Appendix on "Getting to Know YouTube."




                                              Action Idea

     Set up your own YouTube account. Then set aside fifteen minutes a day to explore the site and
                                      become familiar with it.




                                                                                             5
                      YouTube Now and in the Future

In some ways it's the classic Silicon Valley success story, complete with garage. Chad
Hurley, Jawed Karim, and Steve Chen became friends when they worked for PayPal where
Karim was one of the founders. In early 2005 they were at a dinner party to which many
people had brought their camcorders. Conversation turned to how hard it was to share
videos with others using the internet. That inspired the friends to set off to Hurley's garage
to write some code that would make online video sharing easy.

By February they were testing their system online and receiving a great response. The
response was strong enough that in November YouTube received $3.5 million in venture
capital funding from Sequoia Capital. Millions of people seem to have been waiting for
YouTube. When the site launched officially, in December 2005, it already had more than a
million short video clips. Later that month visitors were uploading 8000 clips a day and
viewing 3 million.

By April 2006 visitors were watching 35 million videos a day. The company received another
round of funding from Sequoia Capital: $8 million to expand sales and marketing efforts and
build-out the data centers. In October, Google agreed to buy YouTube for $1.65 billion in
Google stock. At that point YouTube visitors were downloading over 100 million videos a
day. The purchase was finalized in February 2007.

Speaking at the Library of Congress in June 2008, Professor Michael Wesch of Kansas State
University described the impact of YouTube. "YouTube produced more hours of video in the
past six months than the three major networks have produced since 1948."

Clearly, YouTube is an important force on the internet and in digital media but as Professor
Wesch also noted, the vast majority of videos on YouTube today are short, amateur videos
of three minutes or less. YouTube today is not what YouTube will be in a year or three
years. The changes are driven by some powerful trends and will follow predictable patterns;
Understanding them will help you get out in front of the curve.

YouTube is Already a Market

Marketers using YouTube benefit from the commercial infrastructure that is already in place
on the internet and the extent to which people around the world have become accustomed
to shopping online. According to Nielsen Global, as of February 2008, 875 million people
worldwide have bought something online. Buying is strong across many countries.

"Among Internet users, the highest percentage shopping online is found in South Korea,
where 99 percent of those with Internet access have used it to shop, followed by the UK (97
percent), Germany (97 percent), Japan (97 percent) with the U.S. eighth, at 94 percent.
Additionally, in South Korea, 79 percent of these Internet users have shopped in the past
month, followed by the UK (76 percent) and Switzerland (67 percent) with the U.S. at 57
percent."

This matches up with the numbers we see on YouTube. 91 percent of YouTube users have
purchased something online. 63 percent have done so within the last three months.




                                                                                                 6
When it comes to direct buying influence, the numbers are lower but remember we're
considering the influence of a single site so the statistics are impressive. 35 percent of
YouTube users have purchased something online that they saw advertised on YouTube and
30 percent have followed a YouTube link to make a purchase. These figures are almost
certainly depressed since users include a sizeable proportion of teenagers who do not have
a credit card to make online purchases.




                               DRAFT
Online purchases are only the tip of the iceberg. Many people who shop online are likely to
buy offline. According to a 2007 study by eMarketer: "for every $1 in online sales, the
Internet influenced $3.45 of store sales." Our survey found that 37 percent of YouTube
users have purchased something offline that they saw advertised on YouTube.




                                                                                              7
In general, the purchasing demographics of YouTube follow those for the internet as a
whole. With the exception of teenagers, younger people are more likely to purchase online
than older people. Men are more likely to purchase online than women. The commercial
action on YouTube isn't limited to consumers. 25 percent of visitors to YouTube have used
the site for business. About half of them do so regularly or at least occasionally.

From our research we identify that YouTube‟s commercial usage breaks down into three
main categories. Almost half of business users are looking for more information about a
subject that will help them commercially. 45 percent are seeking information about products
or services to purchase and 28 percent are checking out the competition.

YouTube is already a market that you can exploit. There are some key trends that YouTube
is part of and that will define what YouTube will become.




                                             Action Idea

    Make YouTube a part of your e-commerce strategy. Links from YouTube can drive traffic to your
                                            web site.




                                             Action Idea

        Mine your own experience and research to identify topics that your customers want more
    information about. Identify the questions they ask about your product or service. Then create a
                        simple YouTube video that can answer their questions.



YouTube is Part of Three Key Trends

YouTube is at the center and at the forefront of some key trends that affect the world of
marketing. The three most important are increasing bandwidth, user-generated content and
social networking.

   1. Increasing bandwidth in developed countries is what makes video viewing on the
      web and video sharing possible. According to a study by Gartner, published in July
      2008, "Consumer broadband penetration worldwide will grow from an estimated 323
      million in 2007 to 499 million in 2012."

       As a practical matter, Gartner's projections contend that broadband penetration of
       the consumer market will be above two thirds of households in almost all developed
       countries by 2012. For YouTube this means substantially bigger audiences, increased
       sharing and a substantially higher level of user-generated content.

   2. User-Generated Content (UGC). This is an area where YouTube is at the forefront.
      Not only is the vast majority of the video on YouTube generated by users (29
      percent of them have uploaded a video within the last three months) but
      commenting and rating are key activities that constitute content and simultaneously
      help determine the viewing performance of the associated videos.




                                                                                            8
   3. Social networking sites are obviously amongst the hottest internet properties
      today. YouTube is a part of it in a unique way. The purpose of social networking
      sites like MySpace or Facebook is to help people connect with their friends and to
      find others with whom they have something in common. But YouTube is not a social
      networking site.

       Jon Gibs, senior director of media for the market research firm Nielsen/NetRatings
       follows the social networking sector. He says of YouTube: "You don't create a buddy
       list and share your buddy list, but you do have consumer generated (or at least
       consumer-added) content. You have tagging around that, and you have conversation
       around that, and you have association between elements. To me that's social
       networking."

       Even so, Gibs describes YouTube as "a video-sharing site with social networking
       tacked on." That's a good way to consider the marketing power of YouTube and it's
       an important one.

       The true social networking sites are the converse – users can add video but the video
       (typically user-generated snippets of films, TV shows and comedy clips) is generally
       secondary to the "friends" motif.

YouTube will increasingly become a more hospitable environment for marketers. If
you have a good video, like the Sephora videos, they can carry your brand message without
conflicting with the purpose of the site.




                                                      Key Point

                     Because of its video focus, YouTube should offer more marketing possibilities
                                     and flexibility than the social networking sites.




YouTube today is uniquely positioned as a marketing channel on the net. And we have a
good idea of how it will develop in the months and years ahead.


YouTube will Develop in Some Predictable Ways

Thanks to academic studies of the way consumers adopt innovations, we have a good idea
of how YouTube will develop over the next few years. We think that YouTube will follow
the patterns and timelines of the consumer adoption of technological innovations
such as the internet and television. The basic trails are well-blazed.

Consumer adoption of technological innovation moves from younger to older
people. Young people adopt or grow up with innovations. As they age, the proportion of
older people in the total population using the innovation increases. You can count on the
user base for YouTube to get older until it is more like the total population.



                                                                                            9
Consumer adoption of technological innovation moves from urban to rural
locations. In the case of YouTube, that is likely to be an infrastructure issue. The number
of broadband connections will need to increase in rural areas before the number of YouTube
users will increase but you can count on the YouTube user base to become more evenly
distributed geographically.

Consumer adoption of technological innovation move from more affluent to less
affluent households. In countries where broadband is not subsidized that means that
YouTube use is likely to move down-market as more broadband connections become
affordable. You can count on the YouTube user base in the future to more accurately reflect
the income distribution of the countries where you do business.

Consumer adoption of technological innovation moves toward the mainstream at a
predictable pace. It takes most technological innovations about fifteen years to move from
first public trials to a saturation point. If YouTube follows a similar pattern, saturation will
come around 2020. But there's a more important point to pay attention to for marketing
purposes.

The adoption curve for most innovations is an S shaped, or Sigmoid, curve. The log phase
of the curve, the part with the most rapid growth, usually begins around two years in and
lasts until the midpoint is reached.

Using our dates from YouTube history, the upturn should have been around early 2007. But
the YouTube curve turned up earlier.

If we use videos viewed as a guide, the fast-growth phase for YouTube began in the first
quarter of 2006 when usage was almost doubling every month. That early turn was the
result of two things. First, YouTube was an elegant service, a simple solution to a mass
market problem. Second, the enabling technology, broadband connectivity, was already in
place for many affluent households.

If you're a marketer, what's most important is that the time from the introduction of
YouTube to the midpoint on the adoption curve is likely to be seven years. That
means that by 2012 at the latest the mainstream adopters will be onboard in the US and
the UK. In other countries, that date may move slightly in either direction depending
primarily on the prevalence of broadband connections.

That gives you a window of less than two years to gain some early-mover advantage.




                                              Action Ideas

   Act now to gain a presence on YouTube and position your company so you're established by the
                             time the mid-point of adoption is reached.

    Mine the video you already have. Just be sure to edit your clips for a length and tempo so they
                                             fit YouTube.




                                                                                             10
                                                        Key Points

                       However, be careful, just because you have video doesn‟t mean it‟s good or
                        meaningful to the people in your market. Either modify it so it is, or don‟t
                                                         use it.

                       Key Points: Just because it‟s easy to do, doesn‟t mean it‟s the right thing to
                          do. Check everything you intend to post on YouTube to make sure it
                                represents your brand and moves your mission forward.




Google's Purchase of YouTube is Good for Marketers

Google's ownership of YouTube is important for marketers. Google brings three key
strengths that will further improve YouTube‟s marketing attractions.

Google is highly business oriented. At the time when Google announced the purchase of
YouTube. Google executives declared that one of their key objectives was to "give
professional content owners more opportunities to get their work out to a wider audience."
Google was started with the goal of being a successful business and the founders have
consistently acted with a business focus. Google will therefore act to make YouTube more
valuable to advertisers and more profitable for them.

Google has excellent development capability. The company has made its mark
developing algorithms that deliver content to searchers and searchers to advertisers.

Google has lots of money and patience. Google CEO Eric Schmidt has described
monetizing YouTube through ads as "the holy grail." Finding it means trying different forms
of advertising. Google intends to leverage those strengths.

Here are some of the ways in which we believe Google will further improve YouTube for
marketers.

Google will find new ways to grow its audience. This will happen by raising the quality
of content to attract more viewers to the site for longer and by multiplying the number of
ways to access the site.

Improving the quality of content will happen progressively through agreements with owners
of desirable content. The agreement with Lions Gate, announced in July 2008, is an
example.

YouTube will also expand its viewing audience by being available on more devices. That
includes mobile phones, iPods and critically importantly, home TV. In the US, TiVo, the
provider of technology and services for digital video recorders (DVR), announced in March
2008 that it will offer access to YouTube videos directly from the TV via a TiVo DVR. IPTV is




                                                                                            11
very likely to be the next revolution in consumer technology and YouTube will be a major
beneficiary when it arrives in early 2009.

Google will find new ways to deliver ads. So far this includes pre-roll and post-roll ads
and "in-the-chrome ads" placed in the frame around the video. According to C-net, so far
"the company is happiest with in-video ads that are embedded across the bottom of the
video area itself."

                     Example of a pre-roll ad on YouTube:




There's bound to be more. Since August 2007, ads have been placed in a transparent
overlay at the bottom fifth of the video window on material licensed from media companies.
Product placements in videos have been appearing since 2007 as well. Tests of other
possibilities are ongoing.




                                                      Key Point

                     Google will continue to introduce new ways to serve the needs of marketers
                                     and content providers to the benefit of both.




Google will develop new service offerings for marketers. For example, in May 2008,
Google introduced a service called "Buzz Targeting." The service uses an algorithm to locate



                                                                                           12
videos that are about to "go viral" by monitoring blog traffic, IMs and email. Ads will be
overlaid on the bottom fifth of viral videos supplied by YouTube partners who then share in
the ad revenue.

Google will develop sophisticated analytics for marketers who use YouTube.
Analytics is a Google strength. The company already provides analytics for web masters and
participants in other programs. And it's started to do the same for marketers using
YouTube.

In March 2008, Google introduced tracking software on YouTube that provides video viewing
information. The information includes when and where the video was viewed. Some
information is only shared with paid advertisers and partners. They can learn, for example,
how many viewers watch 25 percent, 50 percent or the entire video.

YouTube today offers you a dual challenge. It's already a market and marketing venue that
you can exploit, so you have to understand the YouTube of today. YouTube is also
developing in ways that will make it more attractive still to marketers and to more
marketers in the future. YouTube Revealed contains a wealth of information to help you
meet both challenges. We'll start by looking at who uses YouTube today.




                                                                                          13
                           Who Uses YouTube Today?

YouTube is developing dynamically and that will lead to myriad opportunities in the future
but a vast array of opportunity exists today. In this and the next four sections, we'll look at
what we know about today's YouTube users. Demographics are a good starting point.

In this section we'll discuss:



               An overview of YouTube demographics today.

               Why these demographics are good news if you target teens or
               young adults.

               How teens and young adults are different and how to figure out
               what they want on YouTube.

               Why teens and young adults aren't the whole story.

               How YouTube's demographics will change.


An Overview

One of the most useful ways to analyze YouTube usage is by comparing the profile
of casual viewers, those who have "ever watched" a YouTube video, with "avid"
users, those who watch daily.

Total USA - % Ever Watch
 100%
  80%
                                         85%
  60%
  40%
  20%
   0%
                                       Total USA
The results indicate that YouTube is far more inclusive than conventional wisdom
might suggest. We found that 85 percent of the US online population has watched
at least one YouTube video. Of course the usage incidence amongst teenagers is
ridiculously high (we discovered that every teenage boy we interviewed had viewed a
YouTube video) but 89 percent of males aged 15-54 in the US online population have
watched a YouTube video and staggeringly so had 71 percent of the US male online
population aged 45 – 54.




                                                                                             14
Males only - % Ever Watch
 100%
                          100%        99%         96%
  80%      89%                                               89%
  60%                                                                    71%
  40%
  20%
   0%
         All males        15-19      20-24       25-34       35-44      45-54
The results for females follow the same pattern. Eighty-one percent of the women online in
the US had viewed a video. That runs from 94 percent of teenage females down to 68
percent of women aged 45-54.

Females only - % Ever Watch
 100%
  80%                     94%         93%         88%
           81%
  60%                                                        73%
                                                                         68%
  40%
  20%
   0%
        All females       15-19      20-24       25-34       35-44      45-54




                                                         Key Point

                      Your thinking is out of date if you think that YouTube is primarily for teenagers.




When we compare avid users to the online population average some important
differences become apparent. Current usage is much more strongly correlated with age
and much more strongly biased toward males.

Let's consider age first. Up to age 34, avid users are over-represented compared to
the US online population. 76 percent of avid YouTube users are 34 or younger. That
same age demographic accounts for only 50 percent of the online population. Teens (aged
15 – 19) account for 35 percent of YouTube viewers, but only 14 percent of the online
population.




                                                                                                15
Males only:
  30%
                                    USA online population     Avid viewers

  20%            23%
                                                      18%
  10%                                                          12%
                                     11%        12%                              11%
                                                                      10%
          7%                 5%                                                          5%
  0%
              15-19               20-24          25-34           35-44             45-54


The distribution is strikingly different for males and females. Overall, males make up
two thirds of avid users. Young males are the most avid users of all.

Total USA:
 80%
                                    USA online population     Avid viewers
 60%          67%

 40%                  52%
        48%
                            33%           35%
 20%                                                                  26%
                                                            24% 26%                23%
                                    14%         12% 15%                      17%
  0%                                                                                       7%
         Male          Female         15-19      20-24       25-34       35-44         45-54


Males under 35 represent 24 percent of the online population. They account for a full 52
percent of YouTube's avid users. Teenage males alone are 23 percent of avid users.



Good News if You Target Teens and Young Adults

Young adults, and especially teenagers, are a coveted market but they are notoriously hard
for marketers to reach with traditional media.

David Verklin is CEO of the media services firm, Carat North America, an independent media
services company. "We've always had a hard time reaching young men and women on TV,
except for MTV. Particularly teenagers - they're not doing a ton of reading."

It's not just hard to reach them. Television's advertising measurement tools are
distressingly imprecise when you compare them to the clickthroughs of online advertising.
And television is expensive. The media buy for a single thirty second spot on a top-rated US
show can run to half a million dollars.

To make matters worse, younger viewers are watching less television. Beth Barnes, Director
of the School of Journalism and Telecommunications at the University of Kentucky says that
today's teenagers are "not interested in traditional mass media."




                                                                                                16
That's probably an overstatement but it's true that today's teenagers are watching less TV
than pervious generations of teenagers. They're doing other things instead.

Harris Interactive has found that younger people are cutting back on other activities to
spend time on YouTube. For 36 percent that means less time on other sites and for 32
percent it means less time watching television. In the UK our Digital Entertainment Survey
2008 revealed that teenagers are also spending 25% less time on their homework.

So YouTube is potentially great news for you if your target market is teens or young adults.
Access to your hard-to-reach target market for less than the cost of TV.


                                              Action Idea

    If teens or young adults are your target market make sure you have a plan to reach them on
                                              YouTube.


Figuring Out what they Want

If teens and young adults are your market, you already have some solid information about
their likes and dislikes, preferences and needs. YouTube and social networking sites then
give you a way to improve that knowledge by supplementing it with online-specific insight.

Visit social networking sites like MySpace and Facebook to get a sense of emerging issues
for this demographic. Those sites are designed for visitors to connect with friends. You'll find
richer profiles there than on YouTube and wider ranging discussions.

Allow these qualitative insights to guide your thinking on which video treatments promoting
your product or business may work well on YouTube. Using the social networking sites and
YouTube in combination will definitely yield better results.



Teens and Young Adults are Different

In "YouTube Revealed" we used ten year age cohorts. The exception is for the ages of 15 to
24 which we divide into two five year cohorts. We did this because teens (15 – 19) and
young adults (20 - 24) are qualitatively different from a marketing standpoint. The major
difference is in the ability to pay.

According to the New York Times, only 9 percent of teenagers have a credit card in their
own name. Despite a huge increase in payment methods for teens, such as pre-paid Visa
and Mastercards, most teens are still parent-dependent when to comes to actually buying
something.

Young adults are significantly more likely to possess a credit card and of course many have
jobs providing them with an independent source of income.




                                                                                             17
Teens and Young Adults aren't the Whole Story

YouTube usage is also prevalent throughout older age groups.

More than two thirds of men and women in the US population over the age of 25 year have
watched a YouTube video. 50 percent of avid users are over the age of 25 and half of those
are over 35. There are a lot of adults over the age of 35, in fact, adults over the age of 45
are increasingly using YouTube to find things to buy. Take this for example: “The Priests”, a
roman catholic singing trio signed by Sony Music, have recorded an accapella hymn. The
video has been featured by YouTube on the frontpage globally generating over 200,000
plays in just 12 hours. The majority of the views were 45+ and the teen market practically
overlooked this clip completely. This kind of prime visibility can easily reach this less „search
based‟ age group and convert into views where they matter.

Clip: They Sing Like Angels Their Powerful Voices Blend Effortlessly – The Priests




                                                       Key Point

               The media like to focus on YouTube as it is today with the demographic highly skewed
                  to the young. Don‟t be drawn in. There are already of adults and businesses on
                                          YouTube with more on the way.




If you sell to them, consider the following.

Forbes magazine, which describes itself as "The Capitalist Tool" and is aimed squarely at
mid-career men and women who are interested in business, has a channel on YouTube.
They've posted almost 200 clips from their Forbes Video Network. The clips and the channel
have links to the Forbes web site.




                                                                                               18
Trafalgar Tours, a UK firm that offers coach and cruise tours maintain a channel on
YouTube. On it, you'll find their own videos about things like "6 Touring Styles." They also
show videos submitted by customers.

A video called "Ben Stein Talks Retirement Planning 1", sponsored by the US National
Retirement Planning Council has been viewed over 20,000 times in a year. Ray Prince, a UK
financial planner who specializes in working with doctors and dentists has 13 videos on
YouTube.

None of these businesses market to teens or young adults but they're on YouTube for the
people in their market who are already there. The styles are very different.

Forbes is using video shot for another purpose. The Ben Stein video is professionally
produced, while the Ray Prince videos are not. They all link to web sites with more
information.

Whether you repurpose existing video or shoot something new, professionally or otherwise,
YouTube can be a potent part of your marketing mix, no matter what age demographic
you're targeting. And, for you things are only likely to get better.

How YouTube's Demographics will Change

Over time the demographics of YouTube will change to increasingly reflect the mainstream.
The demographics for usage in the United States will look more like the US population
proper. Irish users of YouTube will have a demographic distribution more like the
distribution for Ireland.

Teenagers and young adults will continue to be heavily represented. They have the time and
technological tools to use YouTube often and for long periods. New teen users will grow up
in a world where YouTube is part of the landscape.

Ben Austin is a good example. He's thirteen and lives in Colorado, USA. He started using
YouTube regularly when he was twelve and likes soccer, music videos and gaming. As far as
Ben is concerned, YouTube has always been available. That will be true for any child
younger than Ben. In five years, Ben will be 18 and in the midst of the 15 – 19 cohort. He
will be interested in dating, boy-humor and maybe thinking about college. The mix of videos
that claim his attention will definitely change.

Now think about Jackie, Ben's mother, aged 39. She started using YouTube because of Ben
and now watches videos on health & beauty tips, parenting skills and car repairs.

As Jackie and her friends discover YouTube, they will effect the age demographic because
they're older than today's average users. They will search for content that matter to them.
If your video is on YouTube, they will find it.


                                                Action Idea

      What videos can you create the will help someone solve a problem or answer a question when
                                     they become a YouTube user?




                                                                                               19
As YouTube users age, they will look for videos that will help deal with their lives. Whatever
their concerns of the moment, that's what they'll look for on YouTube. They may have
experiences like Chris.

Chris works for a heavy equipment distributor. He's 29 and started using YouTube recently
looking for a competitor‟s TCV commercial. Chris found a video by a Navistar truck dealer
that described what they called their "Quick Diagnostic Lane." He thought it would be good
for his company and proposed the idea to his boss.


The current user base will move through different life stages as they age. As they're
comfortable using YouTube to find information, they will use it to find information and ideas
about things that are relevant to their changing life stage. They will view the videos that are
available and make choices about what and where to buy based on what they find.

We know that YouTube users are likely to continue to use the service. When we asked
YouTube users how their usage would change in the next year, 97 percent said that it would
either increase or stay the same. In our next section we'll consider what it is that users like
about YouTube.




                                                                                            20
                         Why do they visit YouTube?

According to YouTube's own brand channel on August 25, 2008, "Today, YouTube has 71
million unique users each month and has the 6th largest audience on the Internet." The
question for marketers is: "Why do so many people decide to visit YouTube every day?"

The answer is contained within the response to the survey question we asked "Thinking
about your typical visit to YouTube, why do you visit the site?" There are two different kinds
of answer. Some answers told us what it was that makes YouTube a site people want to
visit. Other answers described what stimulated individual visits.

In this section we'll discuss:


              Entertainment as the most important reason people visit
              YouTube.

              Some people visit YouTube to browse and kill time.

              Word of mouth or mouse is the most powerful force sending
              people to YouTube

              Successful referrals are part of a network of communication.

              Young people may visit YouTube to view videos uploaded by
              friends.

              People visit YouTube to see commercials and other clips from
              TV.


What draws visitors to YouTube?

Entertainment is the major draw. 61 percent of all YouTube users, including almost 80
percent of males under 25, cite this as the main reason they visit YouTube.

Entertainment includes many things. Search for news, cars or style and you'll find millions
of videos on YouTube but two categories stand out from the "All Time Most Viewed" list.

Humor and music have been primary forms of entertainment throughout history. They have
the same priority on YouTube today. Of those two, music is the clear winner with 51 of
the top 70 Most Viewed videos.

Music videos and live music clips are among the most popular types of videos. YouTube
users told us that they visited YouTube to "watch new music videos (31 percent) and to




                                                                                              21
"see favorite bands" (23 percent). 15 percent checked to see if a favorite band had
uploaded videos.

                                                Action Idea

      Find creators of “most viewed” videos who post material that‟s appropriate and reaches your
      market. If you can hire them to make a video for you, you will almost automatically reach the
                                      audience they‟ve developed.




Reasons why people visit YouTube:




"Watching new music videos" is very popular with teens, but it falls off sharply as a reason
to visit the site and declines steeply as age increases. The same is true for seeing favorite
bands.

This interest in music correlates with age and is driven mostly by frequency of usage. As
YouTube develops the music draw will remain for teens and young adults but it will decline
for YouTube generally.




                                                                                            22
Some other reasons for visiting YouTube are low draws today, but should increase as
YouTube's age distribution becomes more closely representative of the mainstream.
Consider the figures for news.

"To get the inside track on news stories" is a primary draw for only 11 percent of YouTube
visitors. But there is very little fall-off as age increases. For males, 14 percent of those aged
35-44 see it as a draw compared with 17 percent of those aged 20-24. For females, the
numbers are 11 percent for those aged 35-44 compared with only 9 percent for females
aged 20-24.

Expect news, product information, and work purposes to become more important as the
overall YouTube age profile increases but expect entertainment to remain important as a
draw.
Reasons why people visit YouTube, analyzed by demographics:




                                                                                               23
Today being entertained is most important for the youngest age groups. The importance
does not decline as significantly with age as other draws. In fact, 60 percent of males aged
35-44 and 50 percent of females in those age brackets cite entertainment as, not only an
important draw, but the most important draw they mentioned.

It is therefore essential to ensure that your video has a strong entertainment value. An
entertaining and memorable video combined with a strong stimulus to visit YouTube should
be a winning combination.

Sometimes, YouTube is what You Do

Regardless of the goal that draws a visitor to YouTube, the decision is normally triggered by
a stimulus.

There are two types. Sometimes people decide to visit YouTube as part of the normal
pattern of their day. Other times they do so because they've come across a particular video
or want so support their friends.

45 percent of visitors say they visit YouTube to "browse videos." A similar proportion visit
"to pass some spare time." Neither of those phrases implies a specific purpose or a
stimulus beyond daily routine. Many people visit YouTube because it's part of the way they
live. They don't have a specific objective.

As we'll see when we review specific session patterns, later, these people will probably enter
the main area of the site and use the tools that are there to find videos that interest them.
However, many other users visit the site for a specific reason.



Referrals are Powerful

Word of mouth is the most important stimulus. 55 percent go specifically to see a clip
they've heard about.

Friends refer friends; 47 percent say they seek out a specific video because a friend
recommended it. For 44 percent, a colleague sending a link is the stimulus that drives a
visit. These recommendations are strong drivers for males and they're even more important
for women.

59 percent of females aged 14-19 cite a friend's recommendation as an important stimulus.
That's similar to males' 53 percent. While the male percentage drops with age to 32 percent
for those aged 45 – 54, the female percentage only slips to 47 percent.

When we consider women who visit because a friend or colleague sent them a link to a
specific video, we find something remarkable. The percentage visiting because of this
stimulus is 46 percent amongst teens but then actually rises to 47 percent of women aged
45 – 54.

The referrals from one friend to another often happen with a link in an email or message.
What's not clear from the available data is what role referrals from web sites, newsletters,
and blogs play in stimulating a person to visit YouTube.




                                                                                               24
A Mix of Cross-Referrals: Lessons from a Band

Widespread Panic is an alternative rock band from the US South. They're an excellent
example because they are a top-grossing touring act despite getting little airplay and even
less television exposure. They use a range of tools, including YouTube, to promote
themselves, their music and merchandise.

On the band‟s YouTube channel - WidespreadPanicMusic - you'll find a range of videos
uploaded by fans as well as official videos. There is a link to their website and links to
purchase albums which point to the web site. Their strategy is to offer entertaining videos
on YouTube that encourage you to visit their web site. Once there you can sign up for an
email newsletter containing touring information, shop for their merchandise, and, yes,
watch new videos. There are also RSS feeds and links to podcasts. The band positively
encourage fans to upload and share videos of the band.



User-Generated Content Referrals

25 percent of YouTube users identified that a stimulus to visit YouTube was to watch videos
uploaded by friends. This applies to some 40 percent of males under 25 but the incidence
drops to 24 percent for 25 – 34 year olds and 13 percent for males over 45. This pairs with
the findings on who uploads videos to YouTube where males under 25 are more than 40
percent likely to upload.



I want My TV

User-generated videos constitute the vast majority of videos on YouTube. While YouTube is
at the center of today's clip culture on the net, and a treasure chest of user-generated
content, many of the most popular videos however, are professionally produced.

According to our research many visitors to YouTube come to watch something they saw on
TV. 30 percent visit YouTube to re-view a television clip. 13 percent visit YouTube to watch
commercials.

It is likely that as the age profile of YouTube changes there will be more users for whom
YouTube is not central to their lives. They will be less likely to upload videos themselves and
to have friends with the time and interest to do so. As that happens, visitors will still head
to YouTube based on the referral of a friend, but it will be more likely to watch
professionally produced content or a viral commercial.



Big Lessons

YouTube users of all ages visit the site looking for entertainment. Any marketing you do
with a YouTube component must be entertaining to generate views and promote your
brand. While many visits to YouTube are browsing, word of mouth or mouse is a key driver



                                                                                              25
that gets visitors to YouTube. Your YouTube marketing therefore needs to encourage and
leverage referrals.

Although there is a lot of amateur user-generated content on YouTube, many of the most
popular videos are professionally produced. Many users also visit YouTube to see
commercials or other content they've seen on TV.

Content is only part of the reason why visitors are so loyal to YouTube. In our next section,
we'll look at what visitors like about the site.




                                                                                           26
                     What do they like about the Site?

Since YouTube began rocketing in popularity in 2006, dozens of other video-sharing sites
have emerged. Contentinople, a digital media industry site, currently tracks almost seventy
video sites.

Mixing metaphors, YouTube is both the 600 pound gorilla in the industry and the runner
that's far out in front in the race. That's true for amateur uploaders and fame-seekers and
college students seeking a laugh. It's true for marketers. Television Week put it this way:

"YouTube has already won the prize as the most popular video site; now the second-tier
sites are jostling to become the preferred destination for creators."

YouTube was not just the first great video-sharing site. It's also a site that visitors continue
to love. In this section, we'll discuss the two most important reasons.



              YouTube has great content.

              YouTube makes it easy to find and view that content.




                                                                                              27
YouTube has Great Content.


                               Excellent     Very good         Good    Fair    Poor       Very poor    Don't know


                                     Ease of navigation          20%            30%              31%          1%
                                                                                                               5%
                                                                                                           13%1%


                            Videos that I love to watch           22%           27%              30%           1%
                                                                                                           13%2%6%


       Ease of searching videos might be interested in           19%           29%               31%          1%
                                                                                                               6%
                                                                                                           12%2%


      Ease of searching for specific video want to view          19%           28%               31%           1%
                                                                                                           13%2%6%


                                        Overall content          18%           30%               32%           1%
                                                                                                           13%2%5%


       As a one-stop site for all the videos want to see          21%          26%            29%           2%
                                                                                                        13%3%7%


                                           As a site I trust     19%           25%           29%             2%
                                                                                                        15% 3%7%


                     Buffering/loading speed of videos           15%          27%            33%             2%
                                                                                                        14% 3%6%


             Relevance of the videos to me personally            16%          23%           34%             2%
                                                                                                       15% 3% 7%


       Quality of the video (resolution, sharpness etc.)        13%      24%               35%               2%
                                                                                                        19% 4%4%


             Parental safety (no inappropriate videos)          11% 17%             21%      18% 9% 7% 17%


                                   Usefulness for work          8% 12%         23%         19%     9% 7%    22%




The YouTube survey asked respondents how they rated YouTube for "videos I love to
watch." 49 percent rated the site as excellent or very good on that dimension. 79 percent
rated the site as good or better.

The satisfaction level for "overall content" is similarly strong. 49 percent rated the site as
excellent or very good on that dimension as well. Again, 79 percent rated the site as good
or better.

In both cases, males in most age groups rated YouTube slightly higher than females. And,
also in both cases, the rating generally declined as age increased. Even so, 41 percent of
males aged 45 - 54 and almost a third of women of the same age concurred with the
excellent or very good rating.

"Relevance of the videos to me personally" did not fare as well. Even so, 39 percent of
respondents rated the site excellent or very good, and 73 percent rated it good or better on
this dimension.




                                                                                                                     28
Only 27 percent of women 45 – 54 rated this dimension excellent or very good. That will
change as the overall age demographic changes and more videos relevant to older women
and men find their way on to YouTube. If these people are in your market, this represents
an opportunity for you to reach a portion of your market today, differentiate yourself from
the competition, and gain some early-mover advantage.

Video quality also received an excellent or very good rating. That's fascinating given the
amount of amateur video. One reason could be that all-time Most Viewed videos tend to be
either professionally produced or are amateur videos with decent production values.

One dimension that indicates the strength of YouTube as the primary video-sharing site is
as a "one-stop site for all the videos I want to see." Three quarters of YouTube users rated
the site good or better on this score.

This is a key strength of YouTube. Competitor sites that are drawing eyeballs are primarily
specialty sites. One site does "knowledge issues," another specializes in how-to videos and a
third is devoted to college humor.

YouTube is big enough and popular enough that it offers a lot of special interest material
alongside mass market material and amateur and "look-at-me" videos that will only get
attention from friends.

Lovers of one specific thing are likely to find videos that feed their interest. US newspaper
writer John Martin wrote about his interest this way.

"I'm a sucker for funny television commercials. And having grown up in the '70s and '80s, I
miss the ones that aren't around anymore.

Well, a lot of them actually are still with us, courtesy of YouTube."

Martin can get his fill of the old Wendy's ads with Clara Pell demanding to know "Where's
the beef?" He can laugh at the old Miller Lite beer ads and watch O. J. Simpson run through
airports for Hertz. Then he may go on to something different.

In Information Today, Chris Walter, assistant director of the Haddon Heights (N.J.) Library
is quoted this way. “I really love YouTube because I can find clips of music videos, concert
excerpts, sporting event highlights, or whatever. These are videos that you can't just turn
on your TV and watch.... When something pops in my head, I can go right to my computer
and watch it."

Part of the marketing future of YouTube will involve being there when people begin to
browse for videos with other subjects than the one that brought them to the site in the first
place. That's where search and navigation get important.

Quality of content would be meaningless if visitors couldn't find interesting clips and view
them easily. That's the other factor that makes YouTube the most popular video site.



YouTube makes it Easy to Find and View Great Content.

A notable finding from the YouTube report is the thing users like most about the site isn't
the video. It‟s the ease of navigation.



                                                                                                29
80 percent of users rated YouTube as good or better on "ease of navigation." Half of them
thought the site was very good or excellent. That's a powerful one-two punch. Great content
draws people to the site and the ease of navigation then helps them find more content of
interest.

If you don't have a referral, search is the next best way to find a video without having to
waste time trawling irrelevant content. The Search Box is the most-used/visited element on
YouTube. 61 percent of users use the search box in most visits.

This matches the way web users use search boxes on standard web sites. Research by
Nielsen-Norman, a usability consulting firm indicates that two thirds of first time visitors to
a site will use a search box as their first action on the site. That's why it's absolutely
imperative to make sure the search box works for you.

Let‟s start with what we've learned about how visitors use the Search Box.

You can hunt for a specific video that you know exists. 51% percent of YouTube users do
this regularly and 81 percent do so at least occasionally. Or, you can search for something
more general. 21 percent of users do this regularly as a way to find a specific video and 19
percent do this regularly to browse all potentially related videos.

To illustrate, consider Deltalina. In early 2008, Delta Air Lines produced a new in-flight
safety video. The flight attendant in the video is Katherine Lee, nicknamed Deltalina
because of a resemblance to Angelina Jolie. The video went on YouTube in March 2008. In
six months, it attracted over a million views.

Now, let's say that you have heard about the video and want to watch it. You could try
searching for "flight attendant" or "airline safety video." In both cases, you would fail to find
the video on the first page of search results. Search for "airline safety video Delta" or
"Deltalina" and the video is at the top of the list.

Like search functionality on the web, search on YouTube uses the title of the video,
description copy, and tags that indicate what the video is about. Here are some tips for
getting your video found on a specific search.




                                                                                              30
                  Create a title that accurately describes the video from the
                  viewer's perspective. For 48 percent of users, a title that tells
                  them what the video is about is one of the three key factors that
                  helps determine which video to watch from a list of possible videos.

Enter a persuasive description of the video that will stimulate viewers’
interest. 45% percent of users say that a relevant description is one of their top
three selection factors.

                                       The description gives you a flexibility that
                                       tags do not. Tags are limited to single words
                                       but in the description you can use phrases
                                       that a YouTube visitor might enter to search
                                       for a video like yours.

The description also gives you the vital
opportunity to include direct URL links for
official websites, mailing list sign ups or
sales page and also other words such as
celebrities associated with your video,
where it was shot, or the name of a site
where the video has been featured.
YouTube visitors may use those words within their search term.

Enter word tags that describe your video to your target market

The keywords that you use on the web and in your PPC advertising will make
effective tags, but the video title is equally important if you want to be found in
search.


If you‟re a local business, make sure your videos have tags that include the name
of your community


If your company or brand name is often misspelled, make sure your tags include
the name of your community

Select a thumbnail for your video
A "thumbnail that looks like it's the video I want to see" is one of the top three
reasons to pick a video for 41 percent of users.
So tweak your length so that an image that represents the content or that draws
more views is in that position. Therefore the thumbnail should bring a reaction
from the viewer, most predominantly curiosity or excitement

YouTube is the top global video sharing site because it combines great content
with effective searching. You'll be most effective marketing on YouTube if you



                                                                                       31
    produce great content and describe it in ways that allow viewers using the
    search box to easily find you.

   Once you‟ve got videos for YouTube, you can use them on other sites too.
   TubeMogul (www.tubemogul.com) is one service that can upload your video to
   multiple video sharing sites.

   Split runs work for the direct response marketers and they can work for you.
   Upload the same video with different titles or different videos with the same title
   and see which ones do best.

In our next section we'll review what we know about what videos YouTube users choose to
watch and share.




                                                                                         32
 What videos do they choose to watch?

In this section we analyze the types of videos visitors want to watch and how they make
their choice.



              Two Goals that you should consider when marketing with
              YouTube

              What Kinds of Video YouTubers like Most

              Factors in Choosing a Video to Watch

              Recommendation: The Most Important Factor

              Ways that Recommendation Works


Two Goals

It would be great if all you had to do was figure out what kind of videos are most popular
and then create some just like them but life and marketing are harder than that. Producing
a popular video is just not that easy. With attention, effort, and experience you can turn out
good videos and if you do, some of them will probably turn out to be popular on YouTube.

What's important is that you produce videos that reach your target market and help
move your marketing strategy forward. That means mating what you know about your
target market with what we know about what they do on YouTube.

What's also important is that you use what you know about YouTube viewing habits
to develop a coherent and effective strategy for advertising on YouTube. We'll
discuss advertising on YouTube in more detail later. So read this section with an eye toward
how you can use what you know about YouTube for ad buys and placement.

Now, let's look at what YouTubers like most.



What Kinds of Video YouTubers like Most

If you haven't done so already, take some time and review the Most Viewed YouTube
videos. Start by going to http://www.youtube.com/browse?s=mp




                                                                                            33
Below the description of the Spotlight Video there are four tabs. The first is "Today." The
videos below the tab represent the Most Viewed videos on the day that you're watching.

Other tabs are This Week, This Month, and All Time. YouTube describes their partner
program this way.




                                                                                              34
That seems pretty straightforward until you dig a bit deeper and look at the age/sex
breakdown of preferences. There you see that Music Videos are the top choice of only four
age/sex groups, only one more than Blooper Clips and Bloopers are the top choice of
women in three age groups stretching from 25 to 54.

Movie Trailers are the top-rated type for males aged 20 to 35. Stand Up Comedy clips are
the top choice for men over 45.




                                                    Key Point

                       Film trailers and music videos are some of the most-viewed videos on
                            YouTube. Consider ad placements around appropriate ones.




                                                                                            35
Here are three recommendations for you about how to use this data.


Look at the data for the age and sex combinations that match your target market.
You may want to do some additional research among the portion of your target market that
already uses YouTube.

Look at the Most Viewed videos in categories that would attract your customers.
You may have to parse things a little.

For example, YouTube has a category called "How-to and Style." This is a strange pairing
that results in most-viewed videos about how to use a curling iron right next to videos
teaching you how to make an amplifier from a mint tin and how to perform magic tricks.

Look for videos of the kind that might be popular in the future. This is the Wayne
Gretsky Rule, named after the Canadian hockey great who advised that to be successful you
need to "Skate to where the puck will be".




                                                                                           36
One possibility is "how-to" videos. In our research, they placed number eleven, with 11
percent of respondents finding them "very appealing." There are two signs that this
category may become more popular as YouTube matures.

One sign is that there are seemingly well-funded start-ups aiming to fill the space. Howdini
is a how-to site aimed primarily at women. And Howcast is a start-up created by former
Google and YouTube executives.

Another sign is that the maturing process at YouTube is looking very much like the way the
web developed. In the beginning, the web was a novelty destination. People shared "cool"
and "killer" web sites with each other. Then people surfed the web just to surf the web. As
time went on, though, people began going to the web for more practical and specific things.
Entertainment, per se, declined as a reason for using the web for most people. Searches for
information and answers became more important.

That's what should happen with YouTube. As the demographics of YouTube become more
like those of the mainstream population more people will visit YouTube looking for answers
to questions or solutions to problems.

How-to videos should be among the first beneficiaries of the change. Other "answer a
question or solve a problem" categories may include news and education.

Categories are important but in the end individual people choose individual videos to watch.


Factors in Choosing a Video to Watch

YouTube users go through a process to select which videos to watch. When they do, they
consider three factors. You should, too.

Controllable factors are the factors that you can control directly. You create the
content of the video itself. You select the tags or keywords that will describe it. You provide
the description and select the category. You control the thumbnail.

Those factors, especially title, description and content, are most important in what videos
are presented for consideration and which are at the top of the list. Then controllable
factors, like the thumbnail, work with cumulative factors to affect the choice of video to
watch.

Cumulative factors are factors that result from the actions of YouTube and
YouTube users and that, mostly, gain cumulative affect with time. YouTube users
look for signs that others have liked a video. So the number of views, ratings, and favorites'
selections help a video stand out from the crowd.

Recommendations are even more powerful. They occur when someone a YouTube
visitor knows suggests that a particular video is one they will enjoy.




                                                                                              37
                      DRAFT
Recommendation: The Most Important Factor

As we've already noted, word of mouth is the most important stimulus in getting people to
visit YouTube. It's also the most important variable when users choose which videos to
watch.

70 percent of the respondents named a friend or colleague's recommendation in response to
the question: "When browsing in YouTube, what really encourages you to view a video?"
What's most striking is the consistency of that response across different age/sex groupings.
The range of responses is from 63 percent to 80 percent.




                                                                                         38
When it's in play a recommendation from a friend or colleague is a powerful force for
selecting a specific video to view. The way it works, though, is different depending on how
visitors go about making their choice.



Ways that Recommendation Works

A friend or colleague's recommendation has the smallest impact on video choice if
the YouTube user is simply browsing the site. There may be a small recognition factor
that causes a YouTube browser to choose a video he or she remembers being mentioned by
a friend. Otherwise, though, recommendation has virtually no impact. Controllable and
cumulative factors rule.

Sometimes the user searches for a general type of video. This search can begin by
choosing a category or by entering words into the search box. A recommendation may
influence the words or category chosen. It may also have the same "recognition" effect as in
browsing.

When a user does a general search, controllable factors are important in creating the list
of videos to consider and in influencing the choice. Cumulative factors play a part in the
choice as well.

A user can search for a specific video if he or she knows the title. Many specific
name searches occur because a friend has recommended the video. Neither controllable nor
cumulative factors are in play here, unless the searcher gets the title wrong.

The most powerful effect of a recommendation is when a friend or colleague
makes it by sending a link. Then the YouTube user bypasses search altogether and goes
right to the video.

To use YouTube most effectively in your marketing, you must use what you know about
YouTube users and how they choose what videos to watch. You must understand how that
may change with time. You also need to combine that knowledge with what you know about
your own target market and marketing goals. In our next section, we'll review what we
know about viewers' sessions on YouTube.




                                                                                              39
              How they Use YouTube: Typical Sessions

We've been reviewing what we know about today's YouTube users. So far, we've covered
today's YouTube demographics, why they visit YouTube, and what they like about the site.
We've reviewed what videos they choose to watch and how they go about finding them.

In this last section about the users themselves, we'll consider the way they structure their
sessions. Here's what we'll discuss.



              Frequency of Usage

              When they Watch

              Where they Go

              On the Watch Page

              After the First Video


Frequency of Usage

YouTube is important in the life of its users. More than half of them visit the site more than
once a week. Two thirds of them visit the site at least weekly.

For teenage males the numbers are even higher. More than half of them visit every day and
an astounding 92 percent visit weekly. If young males are your target market, you can
count on finding them on YouTube. But what if you market to a different demographic?

As you would expect, the percentage of users who visit at least daily declines sharply with
age. Only 11 percent of males over 45 and five percent of females the same age visit
YouTube every day.

When you pull back a little, the story is different. Over half of those 45 – 54 year old males
and more than a third of females the same age visit YouTube at least once a week. For
other age/sex groupings the numbers are higher.




                                                                                               40
No matter what age/sex demographic you're marketing to, YouTube presents you with a
large user base that returns regularly. That means you can count on repeated exposure to
many of the same people, which is important for brand building. It means that you can
count on multiple opportunities to tell your story and demonstrate your benefits; knowing
when they visit YouTube means you can be ready for them when they show up.



When they Watch

Michelle Quinn, writing in the San Jose Mercury News, interviewed a teenager named Allen
about what she called "his YouTube habit." She asked him when he visited YouTube. Allen's
answer: "I go to YouTube when I get bored."

What Allen actually meant was that he goes to YouTube when he gets bored and he's not in
school. When you review the usage for teenagers on weekdays you see that in the 3 PM to 6
PM daypart, usage jumps up to 53 percent for males and 41 percent for females.

But it goes higher yet for this group. 69 percent of teenage males and 63 percent of females
say they visit YouTube in the 6 PM to 9 PM time slot. Their usage is slightly lower between 9
PM and midnight on weekdays.

On weekends, a higher percentage of teenagers visit YouTube in the morning and after
midnight than on weekdays. On the whole, their pattern represents high usage rates
constrained by their schedule and access to the net.




                                                                                          41
If this market is your target, then it makes sense to ensure new material is uploaded early
enough so it's in place for the after-school and evening high usage periods. Advertising buys
are more likely to be effective in these dayparts.

For all YouTube users, there are some clear patterns to be aware of. The heaviest time of
use is in the 6 PM to 9 PM slot during the week. On the weekends this extends from 6 PM
through midnight.

This makes sense, given the way most households live. In the morning, there's a rush to
get out the door to school and work. Hardcore users may check YouTube to see if there's
anything new and interesting, but most users will be engaged in other activities until after
school. In most households in Western countries teenagers are settled at home by 6 PM
often with a parent present. YouTube usage by teenagers makes a big jump here, but it's
also the heaviest weekday usage time for all YouTube users.

The weekends are different. Most households sleep a little later and devote the day to
chores, errands or leisure activities. Accordingly YouTube usage builds more slowly. The
time slots of 9 PM to Midnight and After Midnight have higher percentages of usage than
their weekday counterparts.



                                                                                               42
We see that there's strong usage across all the days of the week but there's a clear and
strong spike on Fridays and Saturdays. Percentages of YouTube users who visit on those
days are 65 and 67 percent respectively.

When you look at this data, remember that our sample was drawn from US users. It reflects
what we might expect from what we know about the day-to-day living patterns of people in
the US. You may need to adjust expectations if you are targeting people with a different
pattern.

Another point worth making here is that there is usage across all the days of the week and
all the time slots. YouTube is truly a 24 X 7 phenomenon.

In the future, you can expect the usage patterns for younger people to remain relatively
stable but you can expect the overall patters to shift as older people with different life
patterns change the mix of YouTube users.

You'll also see new usage patterns develop among certain groups. One example is
something that's been termed "video snacking". The term was coined to describe a usage
pattern where people view bits of video during the day. They look at one or two clips at a
time, often while they're at work. Some users collect the bits to share with others later. In
some US offices cubicle dwellers coordinate their video watching and sharing time during
lunch. They shout comments and punch lines to each other.

Spontaneous new patterns like this present opportunities. If you're marketing for a motor
sports company, for example, you might consider uploading new and newsworthy clips in
time for automotive enthusiasts‟ lunch every day. If you did this every weekday, you can
create both a pattern and an expectation. Then those motor enthusiasts would be likely to
seek out your "motor sports news of the day" every day and check it out from home in the
evening if they missed it at lunch.



                                              Action Idea

     Pay attention to the usage patterns for the market segments that matter to you to optimize
          your strategy. And pay attention to emerging patterns to seize new opportunities.




Where they Go

Type the basic URL for YouTube (http://www.youtube.com/) into your browser and you‟ll
land on the YouTube Homepage but, as with other web sites, some visitors don't go to the
home page and many who do skip through to something else. Here are the most popular
pages on YouTube starting with the Home Page.




                                                                                             43
Overall incidence among all respondents:
            Every visit   Most visits   Sometimes     Rarely     Never     Not familiar with this


        Use the search box              35%                26%             20%         7% 6% 5%


                 Homepage               37%                19%           20%         10%    9% 5%


            Videos Section          26%             25%             21%         11%        10% 7%


       My profile / Account      15%          17%          28%                 26%          11% 3%


          Channels Section 4% 10%         17%        17%             33%                   20%


        Community Section 3% 6%         18%         16%              39%                    17%



Slightly more than 1 in 2 YouTube visitors go to the home page on most or every visit. This
is true across ages and sexes, with one exception. Women over 45 are far less likely to visit
the home page than other groups. There are two possible reasons for this. Those women
may simply go directly to a channel that interests them or they may be following a link from
a friend or a web site to a specific watch page.

When people visit the home page they can use the search box, select from the Videos,
Channels and Community tabs, or select videos to watch from three groups.




The "Videos being Watched Right Now" selection shows five videos that change every ten
seconds or so. Viewers see the thumbnail and the time of the video, but nothing more. 23
percent of visitors to the home page select one of these videos to view on most visits.




                                                                                                     44
Promoted videos are selected from past featured videos and sponsored videos. Four
thumbnails appear on the home page, along with the name of the content partner creating
the video and the title. 22 percent of visitors choose one of these on some or most visits.




Featured videos are selected by YouTube editors. They're the most popular types of video
for home page users. 29 percent of them check out a featured video at least most of the
time. 37 percent more do so "sometimes."

Most Popular
The Videos section is also very popular. Over half of YouTube viewers check it out on most
or every visit. Almost three quarters do so at least "sometimes." They can view selections
from "All" videos or from a specific sub-category.

Early this year YouTube added the category “Most Popular” to the “videos” page. This view
is currently only available if your country setting is “worldwide”.




                                                                                           45
“Most Popular” allows YouTube to only feature videos that are not in any way against the
YouTube terms and conditions. Videos which do appear to have broken YouTube‟s rules in
some shape or form are “algorithmically demoted”.

The following section refers to the “videos” page as below.




31 percent use the "All" category on most or every visit. The same percentage choose a
sub-category page, such as "Comedy" or "Music." Whether they select from all the videos
on YouTube or a specific category, viewers can filter their list based on tabs with titles such
as "Most Viewed" or "Most Popular" or "Rising Videos."

There is also a "Spotlight" video on the videos page. Only 21 percent of visitors watch the
Spotlight video on every or most.




                                                                                              46
               Every visit     Most visits    Sometimes   Rarely   Never     Not familiar with this
           Watch the "Most
          Viewed" or "Most       10%         21%            38%              17%      12% 2%
           Popular" videos
        Watch videos in the
        categories (Comedy,      10%         20%            36%            18%       14% 2%
         Sports, Music etc.)
              Watch the
                                 6%    15%            38%              21%          16%    3%
           "Spotlight" video


There are other pages on YouTube that have significantly fewer viewers them than the
pages we've already discussed. Only 33 percent of visitors stop at their profile or account
page on most visits. Even fewer check a page in the Channels section (14 percent) or the
Community Section (10 percent) on most visits.

We've been discussing specific and popular pages, but it's important to re-state the
popularity of search. The search box is the favorite way for visitors to find things they want
to view on YouTube.


On the Watch Page

Once a visitor has chosen a video, he or she is taken to what YouTube calls a “watch page”.
That's the page with the full video and all the data about the video.




                                                                                                      47
Two prominent blocks of space are taken up by the video and advertising. There are ways
to select similar videos and videos by the same uploader. And there are ways for the viewer
to participate in the YouTube community.

We'll have more to say about this in the section on the YouTube Community, but the watch
page is where users can elect to share a video, mark it as a favorite, add it to a playlist or
tag it as violating copyright or a YouTube regulation. Viewers can also post video and text
responses.



After the First Video

Viewers tend not to stay long on any individual watch page. The YouTube Report found that
respondents‟ subjective judgment about the length of the average video they watched was
3.5 minutes and we know that 89 percent of the videos on YouTube are less than five




                                                                                             48
minutes in length. Dr. Michael Wesch of Kansas State University has found that the vast
majority of videos uploaded to YouTube are amateur videos of around three minutes.

For professional videos, the situation is somewhat different. One of the most popular videos
on YouTube is a short film that runs just over ten minutes. Other "films" on YouTube also
tend to run longer than five minutes. There are also standard lengths for some types of
video. Music videos, for example, generally run between two and a half and four minutes.
Movie trailers are usually between two and three minutes.

So when a viewer selects a video, he or she will not spend much time viewing it. What
about those who watch multiple videos during a YouTube session?

For most visitors, most of the time, the norm is to watch one or two videos per session. 36
percent said they regularly watch a single video. 23 percent watch two. Those who watch
three or more videos in a session are likely to be young and male.

% Regularly Watch:




NB: Figures add to greater than 100% as viewers can regularly watch a
varying number of videos in a typical session

When users finish watching the video, they remain on the watch page for that video. They
then have several options. The most likely action is to see if the person who uploaded the
video they watched has uploaded any other videos. In fact, 43 percent of users do exactly
this. If they like the video they've just watched, it's a simple move of the mouse to find
"More From" the uploader.

The other options on the watch page include the many ways to respond to the video just
watched. We'll cover those in the next section where we cover comments and other ways to
be part of the YouTube community.




                                                                                             49
                           The YouTube Community

"Without the ability to share, YouTube video is just rich media data hiding in a database."
-- Customer Relationship Management Magazine, December 2007

That might not be a bad thing. It might even be a good business. But the reason that
YouTube is so interesting to marketers grows directly from that "ability to share." The way
that YouTube users share with each other is how viral marketing can happen. Sharing is at
the core of the YouTube community and community is the engine that drives the marketing
potential of YouTube.

David Verklin, chief executive officer of Carat North America, describes what can happen to
your message this way: "It goes out virally into the community at speeds and sizes that
boggle the imagination." But that doesn‟t happen automatically. To make this work for you,
you have to start with a working definition of community. Then we can look at how YouTube
stacks up against that definition and look at strategies that will work well in the YouTube
community.



Communities, in the Physical World and Online

Originally, sociologists defined "community" as "a group of interacting people living in a
common location." Now, largely because of the rise in networking the definition has
expanded. Today the term "community" means any group of people with shared
characteristics. Common usages would be "the African-American community" or "a
community of practice."

Online communities have their own history. The very first ones developed around email
discussion lists, internet user groups, and Internet Relay Chat (IRC). There were different
kinds of discussion groups on the internet's walled gardens, America Online and
Compuserve. Then, in the early 1990s, the internet began to go mainstream. Online
communities of all kinds began to develop. There was an online community where law
enforcement officers discussed how to create more effective police services. Collectors of old
electric guitars got together online as did people who loved growing roses.

What made the online communities different from the physical communities was that
members were united by interest more than by location. Today's social networking sites and
YouTube are extensions of that idea, enabled by new technologies.

Online communities have been attractive to marketers since they first developed. They
bring people together based on a common interest. If you're a marketer, that's just what
you want. You want to be able to identify, reach and communicate with the people who
make up your target market.



YouTube: The Community

YouTube is a global community of people who are interested in watching and sharing video.
That community exists in two forms.




                                                                                              50
There is the "official" community, represented by the parts of YouTube that are labeled as
such. This is the structural community. Most YouTube users don't pay much attention to it.
Only 10 percent of YouTube users visit the Community Section on most visits. Well under
half have visited it at all. In fact, 17 percent of YouTube users say that they're not familiar
with the Community section of the site, even though it is one of four tabs that appear on
every page.

Overall incidence of visiting the community section, among all
respondents:
      Every visit   Most visits   Sometimes   Rarely   Never     Not familiar with this



  Community Section 3%6%          18%     16%              39%                 17%



This has implications for you as a marketer, especially if you choose to market on YouTube
using a contest. You can't count on YouTube users finding your contest on the Community
part of the site. Only about a fifth of those who visit the Community section view the
contest pages on most visits. You'll have to generate interest in other ways.

That's the bad news. The good news is that YouTube is a vibrant community that is
receptive to marketing.



The YouTube Community is Defined by Actions

YouTube users may care little for the structural YouTube community but they participate in
the living YouTube community in a variety of ways. Some produce original videos; some clip
them from other sources to upload; some comment on the videos and some just watch
them.

They're all part of the YouTube community that has two things in common with all
communities everywhere. The first is that members identify themselves as part of the
community.

In the physical world, people identify themselves as a member of a community by telling
you that they're "from Australia" or that they're "a diabetes sufferer" or that they "build
rockets." With online communities, people identify themselves as members by subscribing
and logging on to a site.

Our research found that 56 percent of YouTube users are registered, declaring themselves
as part of the community. A full third use the log-in when they visit the site.




                                                                                              51
                     10%                       Yes and I tend to use the log in
                                               Yes, but I do not tend to use the log in
                                    33%        No, I am not registered
                                               No and I was not aware you could register

             34%




                             23%




The other characteristic of a community is that there is interaction between the
members. On YouTube that happens in two ways.

The community decides what's important by what they view. Users can find out what others
think by checking out the "Most Viewed" or "Most Popular" videos. 25 percent of
respondents said they do this on most visits with 10 percent doing so on every visit.

YouTube users also rate the videos. According to the YouTube Survey, almost 1 in 3 does
so. It's also possible to tag a video as "Favorite."

29 percent of YouTube users have commented on a video. On YouTube there are two kinds
of comment. You can post simple comments on any video or you can create a "video
response."




A video response is a video posted in response to another video, usually a very popular one.
Video responses are often spoofs of the popular original, but sometimes they offer a
different position.




                                                                                           52
How Marketing into the Community is Different

All of those ratings, comments and responses make up the reaction of the YouTube
community to your efforts on the site. This is different from most other marketing.

If you place an ad on a television program you may get some feedback - calls, mail or e-
mail complaining about an aspect of the commercial. If that ad catches the fancy of people
who view it, they may talk about it with their friends. In rare cases, there may be a news
story about an especially interesting ad.

About the best you could hope for is embodied in the story of Clara Peller and the US fast
food chain, Wendy's. In 1984, Ms. Peller appeared in two television ads where she
demanded (supposedly of another fast food chain) "Where's the beef!?" That line and the
vision of the diminutive but combative Ms. Peller caught on. "Where's the beef?" found its
way into political campaigns, on to editorial pages and also on to tee shirts, coffee cups and
beach towels. It was about as close as you could come in 1984 to "going viral."

In the world of YouTube, viral happens faster, much faster. A good example is the video
named "Dove Evolution", a 75-second film created by Ogilvy & Mather, Toronto. The video
shows the make-over of an attractive, but not stunning, model using lighting, make-up and
photo editing to create a super-glamorous image that appears on a billboard at the end of
the video. Viewers watch the high-speed makeover and then see the tagline for the video,
"No wonder our perception of beauty is distorted." They're invited to take part in a "Real
Beauty Workshop for Girls."

The "Dove Evolution" video garnered millions of views on YouTube. Talk shows like "Ellen''
and "The View'' and "Entertainment Tonight'' picked it up and discussed it. It also drove
traffic to the US and Canadian web sites for Dove's "Campaign For Real Beauty. All of this
happened in the space of weeks.

The YouTube community played a part. As of this writing, there have been more than 7
million viewings of the video. About 6,700 people have rated the video. Almost 3000 have
posted text comments. And there are parodies, a sure sign that the video is popular.

This is a very good, viral video success story. The people who created the ad for Ogilvy and
Mather were professionals, led by Tim Piper. But they created other videos as well. Those
videos didn't do nearly as well. One has had slightly more than 200,000 views. The other
managed 53,000. Those are big numbers compared to the average YouTube video but
neither qualifies as "viral" or comes close to "Dove Evolution."

It's almost impossible to create a single viral video on purpose, even when you're a
professional. Just ask the Monaco Coach Company.

Monaco is a US company that makes vehicles that are variously called recreational vehicles
(RVs), motor homes or motor caravans and which sell for more than U$100,000. The
company uploaded numerous videos that profiled their different models. The number of
video views was respectable but way short of "Dove Evolution." The most viewed among the
2008 models had 7000 views. So the company decided they were ready for a viral video
and created "RV Spy Guys." In six months, the first one has had 411 views. The second one
is doing slightly better with 500 views in four months.




                                                                                             53
There are some Monaco Coach videos on YouTube that get stronger viewing. A video
entitled "Monaco Coach Corporation Number 3" has gotten over 8,000 views in about two
months.

But there's a problem. The problem is that "Monaco Coach Corporation Number 3" is one of
10 videos posted by "MonacoCoachCorp" who is not the company but a very unhappy
customer. The videos he posts chronicle with pictures and sound, everything that's wrong
with his Monaco coach.

The Dove and Monaco Coach examples tell us some important things about marketing into
the YouTube community.

It pays to know your audience and your message. The Ogilvy and Mather people
working on the videos for Dove seemed to have a clear idea of who they wanted to reach
and what they wanted to say.

The Monaco Coach people seem to have decided that since RV buyers viewed descriptive
videos of their products, they'd probably like a video about two guys crawling around an RV
factory. If potential customers had found the "RV Spy Guys" entertaining, they probably
would have shared the videos with each other, but even if they had, there was no strong
marketing message in either of the videos.

No matter what you put out there, the community will decide whether it's good or
not. In terms of production values, message and fit for the audience, other Dove videos
were as good as "Dove Evolution." But something in that video caught the fancy of people
on YouTube, and, once they started sharing it, was promoted by the mainstream media.




                                                                                         54
In the case of Monaco Coaches, part of the community is the angry customer posting his
examples of shoddy workmanship using the name "MonacoCoachCorp." His Most Viewed
videos are getting more views than the company's own.

Angry customers have found that YouTube can give them a voice. When Patrick Askins felt
he'd been wronged and treated rudely by British Telcom (BT), he took his revenge by
posting a rant on YouTube. His video was titled "BT – Don't Waste Your Time." It generated
much publicity and an apology from the office of Sir Christopher Bland, Chairman of BT
Group.

The scary part of marketing on YouTube for many is that you don't control the
community. You can influence it by being part of it but it's beyond your control. You can
post videos. You can participate in comments and discussion. But you can't control what
happens next.

That's why an effective YouTube marketing strategy starts with one thing that YouTube
users aren‟t fully aware of yet: your Brand Channel.




                                                                                            55
                                YouTube Channels

Quicken is the brand name for one the most popular financial management software
packages in the United States. People who have it want to use it more effectively. People
who don't have it want to know more about it.

Quicken is a product of Intuit. Intuit makes financial software including a popular small
business bookkeeping program, QuickBooks, and the most popular personal income tax
software in the US, TurboTax. Intuit is also one of the savviest users of brand channels on
YouTube. We'll use them, along with other companies, as examples in this section.

Before we get into marketing strategy, we need to explain what a channel is on YouTube,
what a brand channel is, and why brand channels represent the core of a successful
marketing strategy on YouTube.

If you type "Quicken" into the search box on the YouTube home page, you'll get the usual
list of videos that have a "quicken" tag. Some are produced by private individuals; some are
video news releases from the press wires and some are videos by the company about the
Quicken product.

One of these is likely to be the one entitled "Quicken Online Demo – Take Control of Your
Personal Finances." That's a great title, telling you what the video is about and including a
benefit statement. Since the video was posted to YouTube, it's been getting more than 300
views every month.

If you watch the video and find it helpful, you may want to see more from the uploader,
"quickenonline." Click on that name and you go to quickenonline's YouTube channel.




                                                                                              56
The channel has more information about Quicken. On the watch page for the video you
could comment on and rate the video, but other than that there was no way to contact the
company. On the Channel page there's a way to email the company and a link to the
Quicken web site.

YouTube's official definition of a Channel is pretty straightforward: "A channel is a user's
page. It contains a user's profile information, videos, favorites, etc." That's true as far as it
goes. Your channel will have your "profile" information. You can tell visitors about your
company or product or promotion. But a channel means much more if you're marketing on
YouTube.

Your channel or channels are where you concentrate your marketing efforts, connect to your
other marketing on YouTube and elsewhere and tell your story. We call channels created by
a company, "Brand Channels" to distinguish their commercial purpose and marketing
potential.

Channels are the sleeping giants of YouTube marketing. Many companies, even those with
brand channels, don't seem to understand their leveraging power. And YouTube users are
just beginning to discover them.


Channels Today

Across the top of all YouTube pages are the tabs for the major sections. According to our
research, 48 percent of users have visited the Channels section and 14 percent do so on
most visits. More than half (58 percent) either don't yet know what a channel is or have
never heard the term before.

Incidence and familiarity of channels on YouTube:

                      11%              I am subscribed to a Channel
                                       Not subscribed but know what they are and sometimes view them
       31%
                              15%      Not subscribed, know what they are but do not view them
                                       Have heard term but do not really know what a Channel is
                                       Have never heard term Channel used before

                             16%

             27%



Only 11 percent of YouTube users are so far subscribed to a channel. As with most things
YouTube, young people are more likely to subscribe to a channel than older people and
males are more likely to do so than females. This will change as the user profile changes
and visitors become more familiar with the content opportunities and navigation.

A relatively small number of channel subscribers currently do a lot of the subscribing. 73
percent of those who subscribe to any channels subscribe to five or fewer but 10 percent



                                                                                                       57
subscribe to between six and ten channels and 17 percent subscribe to more than ten
channels. The result of this skewing is to raise the average number of channels subscribed
to up to 8.1.

There are several popular reasons for subscribing to a channel. The two most prominent are
"I really liked the videos I saw so I subscribed" (48 percent of channel subscribers) and
"Because I'm really interested in the subject area/topic" (43 percent).

This illustrates two basic reasons why viewers favor material of any kind on YouTube:
entertainment and utility. Think of the kinds of videos people choose to watch. There are
videos that are only for entertainment like music videos, comedy and movie trailers. There
are videos that are entertaining as part of what they do, like the "Dove Evolution" video.
Viewers who like videos they saw subscribe to the channel of the producer so they can see
more just like them. This is the power of reinforcement and cross-selling.

Dove didn't have a channel. Viewers who were therefore captivated by the "Dove Evolution"
video couldn‟t easily watch other videos about the brand without resorting to the search
function. In all likelihood many viewers will not have made the connection due to the extra
effort required or the allure of other content. That was a missed opportunity to attract
subscribers.

Sometimes viewers like the utility of a particular video and want to find other, similar videos
to get the same benefit. They learn something or find something out. It's not likely that
someone would view the "Quicken Online Demo" and subscribe to quickenonline for the
entertainment value. But a Quicken user would be likely to subscribe if he or she wanted to
stay in touch with Quicken. We'll have more to say about this below, when we discuss Brand
Channels.

You don't have to subscribe to a channel in order to visit one, hence fifteen percent of users
say that they don't subscribe to a channel, but do visit them.

The three most popular ways to find a channel are "By surfing, coming across it" (55
percent), "Watch video and click username" (46 percent) and "Clicking username" (43
percent). Because of the way that YouTube is organized, those are all, essentially, the same
process. We can count on users finding a channel if they like a piece of video they've seen.




                                                                                            58
% how discover (among channel subscribers)




Other ways to find a channel involve a recommendation of some kind. Word of
mouth/mouse is again a popular way for users to find things on YouTube, and that includes
channels.

Now let's look in particular at brand channels.


Brand Channels Today

Overall awareness and usage of channels is low. Awareness of Brand channels, as a subset
of all channels, is lower still.

At one level only 5 percent of all YouTube users have subscribed to a brand channel. A more
positive way is to recognize that 43 percent of all channel subscribers are subscribed to at
least one brand channel. The same biases toward youth and males hold here as on most of
YouTube.

We asked current brand channel subscribers: "What are the benefits to you in subscribing to
a brand or company Channel on YouTube?" The top reasons concerned keeping up with the
latest videos from the company or with the company's latest products.




                                                                                         59
Subscribers to brand channels are seeking the latest news, reviews, and product
demonstrations. They want to see what other users think about a product and about new
releases. A chance to win something in a contest was also mentioned. In general, those
already subscribing to a channel stress information/utility as the main contributing factors
to their subscription.

The results were similar when we asked channel subscribers who were not subscribed to a
brand channel what would make them consider subscribing to one. The answers were
mostly about product information. 55 percent said they would subscribe to a brand channel
to get information about products they might want to buy. 49 percent mentioned wanting to
see product reviews by other users.

Tactically, some of the devices you can employ when seeking to build your brand channel
are set out below and are responses to the question addressed to all YouTube users "Would
any of the following encourage you to go to a brand or company Channel on YouTube?"
Entertaining videos was the top reason, chosen by 46 percent of users and 62 percent of
teenage males. It was followed by price discounts (46 percent), pre-release products and
services (40 percent) and free giveaways (39 percent). Competitions with prizes of various
sizes were chosen, too.

One way to interpret this data is to see a need for a special offer or entertaining video to
draw people to a channel. After that product information of various kinds becomes more
important.

We also found that simply having a brand channel positively affects the perception YouTube
users have of your company. Almost two thirds of users agree with the statement that
"Brands and companies that have Channels on YouTube are really forward thinking and
innovative." 43 percent agreed that "I have more respect for companies and brands that
have created their own Channels on YouTube."

60 percent of YouTube users think that it's a good thing that companies and brands have
channels on YouTube. Slightly less than half think that it's important for you to be there to




                                                                                               60
"stay in touch with consumers like me." A similar percentage thinks that if you're not on
YouTube you're missing out on reaching them.

                                                      Strongly agree   Agree       Disagree    Strongly disagree


          Brands and companies that have Channels on
            YouTube are really forward thinking and          11%              54%                    25%    10%
                          innovative


     I believe one day that most brands and companies
                                                             12%              52%                    27%    8%
           will have their own Channels on YouTube



     When a brand or company releases a new product
     or service, they should definitely post a video of it   13%              51%                   26%     10%
     on YouTube so potential buyers can see it for real


      It's a good thing that brands and companies have
                                                             11%             49%                    29%     11%
                     Channels on YouTube



       It's important for brands and companies to have
           Channels on YouTube to stay in touch with         10%        39%                   36%          14%
                       consumers like me


        Big brands and companies that don't have a
      Channel on YouTube are missing out on reaching         11%        37%                   36%          16%
                    consumers like me


       I have more respect for companies and brands
                                                             8%        35%                40%              17%
     that have created their own Channels on YouTube




Today there aren't many company or brand channels or many subscribers to them.
However. YouTubers are clear that they think that situation will change. Almost two thirds
agree that "One day most brands and companies will have their own Channels on YouTube."



Making Brand Channels Work

There are some clear lessons from our research about what you should do to market
successfully using brand channels on YouTube. Some of them match what we know about
what works on YouTube in general.

Outstanding video is key to success. Users say that the primary reason they visit
YouTube is to be entertained. They also say that "entertaining and unique videos" are the
prime thing that might attract them to a brand channel.

That doesn't necessarily mean "entertaining" in the sense of stage and screen. For many
adults, "interesting" is a good substitute word. Think about the Quicken Online Demo video.




                                                                                                                   61
It's unique, shares a lot of information, and is well-made but it's not likely that you would
choose to watch it for recreation.

Offers and features may lure visitors to your channel. Price and product promotions
are economic incentives. Receiving products and services before general release is a status
incentive. Contests are a combination of entertainment and economic incentive.

Once people have subscribed to your channel you have to keep the good things coming.
US luxury retailer Neiman Marcus set up a channel when they celebrated the one hundredth
anniversary of the store in September 2007. Within a month they had uploaded 12 videos.
Then everything stopped. No videos have been added since the October 2007.

The name of the channel is important. 61 percent of YouTubers agree with the
statement: "If a username is the same as a familiar brand, I would expect the brand to be
behind the Channel,"


                                                         Key Point

                       Make sure your channel has a name that reflects what people will find when
                      they go there. Usually that will be the name of your brand. Different channels
                                 can represent different brands or markets or languages.



That's important for branding, of course, but it's also important to keep your name from
being hijacked. Remember the Monaco Motor Coach situation.

The company owns "monacocoaches," but a disgruntled customer owns
"MonacoCoachCorp." YouTube users may click on his complaining videos, thinking that
they're official company productions. Once they see his well-documented complaints, they
may re-think any potential purchase from Monaco.

This is similar to the situation in the early days of the internet, when many companies didn't
pay attention to the importance of owning a domain name that matched their corporate,
product, or trade names. Speculators snapped up the domain names of prominent
organizations. Something similar might occur on YouTube at least for a while.

In addition to lessons we can draw from the research findings we can also pick up some
good ideas from the way that marketers are already using YouTube channels. You may want
to check these out on YouTube for a more dynamic idea of how they work.

Youtube currently will not allow for you to claim a user name that has already been claimed
by another user. For instants the user name DavidBowie is registered with an individual.

The site and magazine, In Style, has a channel. They have many videos available. A regular
feature is the video of the monthly "cover shoot." The celebrity who graces the cover that
month is featured in the video. It provides a regular theme so videos can be added easily
and creates an expectation with channel subscribers who will go looking for the latest "cover
shoot" video.




                                                                                                62
                                                    BMW's channel is named "BMWwebTV."
                                                    Videos are posted every few days so
                                                    subscribers have a reason to return.
                                                    The most popular one has over 3 million
                                                    views. The site has over 2,000
                                                    subscribers. The channel is a great
                                                    example of how a company can know
                                                    its target market. While no viewer is
                                                    likely to find all 250 plus videos
                                                    interesting, it would be a rare auto-
                                                    enthusiast that didn‟t find something
                                                    here that they like.

                                                    Frequency of updates may not be
                                                    important to everyone. Intuit's different
                                                    customers have different needs, but
                                                    most are more likely to want helpful
                                                    videos to be there when they need
                                                    them, rather than lots of fresh, new
                                                    videos. What Intuit does very well is
                                                    differentiate the marketing for different
                                                    products.

                                                   We've mentioned the Quicken Online
                                                   channel. There's also a channel,
"intuitquickbooks" for the company's Quickbooks product. And there's "quickenloans" for the
loan granting business. Each product has its own channel because each product also has a
distinct group of users and prospects. The TurboTax channels stand out from the other
Intuit channels.

TurboTax is Intuit's US income tax software. Taxes are generally not fun, so TurboTax went
about building awareness on YouTube with contests. The idea is to reach young people who
are just starting to file income tax returns and introduce them to TurboTax. The way Intuit
chose to do this is by having YouTube users submit videos as part of a contest.

One was the TurboTax Laugh contest for comedians. Comedians had to create routines
based on taxes and, preferable, TurboTax. The top comedian won a prize, plus lots of
exposure on the TurboTax channel. People who visited the contest page could click through
to the TurboTax site or directly to a download of the software.

Another contest was similar, but this time the contestants were challenged to create a rap
video about TurboTax. Hundreds of entries are now on YouTube and most are actually
effective commercials for TurboTax.

Intuit channels for each product are different from each other and address a specific
market. But they all have ways to contact the company and a link to the product web site.
The branding is based on the product name.

Brand channels are not yet common today but that is bound to change as marketers
discover the benefits. Channels are the backbone of your YouTube marketing structure.
Your channel is where you can collect the pieces of your marketing on YouTube and connect
your YouTube marketing to your other efforts. You can use YouTube videos to support



                                                                                             63
special promotions and then introduce viewers of those videos to your other products and
services.

Channels let you leverage multiple videos. When a YouTube user is drawn to your channel
via one video, he or she may discover other videos they like as well or better.

Channels let you cross-market. You can introduce different products and services that are
related to your brand.

The benefits of developing a YouTube channel are there today even though they seem, for
the moment, to be a well-kept secret. But moving today gives you advantages in terms of
securing user names, improving your image with YouTube users and learning how YouTube
marketing works best for you and your unique marketing challenges. There are also early
mover advantages.




                                                                                            64
                           Advertising on YouTube

Video advertising is changing. Since the early 1950s, when television moved into the
mainstream, "video advertising" has meant "television advertising." And for most of that
time "television advertising" has meant fixed-length spots plugged into scheduled shows.
Targeting was based on the kind of rough-cut demographics that lump Grace Slick and
Richard Nixon's daughter, Tricia, into the same group.

That began to change with the rise of cable with hundreds of specialty channels. It changed
as technology offered ways, beginning with videotape recorders and developing into TiVo
and digital video recording, to move away from "appointment television" to "watching what
I want, when I want." The net changed things, too. In the beginning it taught us that
"information on demand" was a good and possible thing. Broadband penetration increased
and video technology developed so that "video on demand" became possible. Companies
like DoubleClick and Google were developing ways that we could begin targeting ads based
on interest and behavior, not just demographics.

YouTube brought all of that together. Today YouTube owns the lion's share of the online
video market. Google and YouTube are developing new ways to deliver ads to people who
want to see them: the advertiser's dream. Today we're still near the beginning of a major
change in "video advertising." Here's how things stand today on YouTube.



What YouTube Users think of Advertising

60 percent of YouTube users agree that "YouTube is a great site to see product reviews and
tests to help me know whether to buy something." What‟s more, 69 percent agree with the
statement: "I don't mind advertising on YouTube because it allows me to access the site for
free." This may have something to do with the findings that users think that the advertising
on YouTube is very subtle. 55 percent say they hardly notice the advertisements.

So it‟s good news that users want to be informed about products but worrisome in that you
want your ads to be noticed. You want YouTube users to remember your ads, click through
to your web site, and buy something you have to sell. If it's worrisome for you, it's
worrisome for Google as well so the company is working hard to come up with ad formats
and tools that make marketing on YouTube a profitable experience while attempting to keep
the YouTube community comfortable with your commercial presence.



YouTube Ads

YouTube has many different ad units available. It is constantly testing new ones. Here's a
quick review.

The YouTube Homepage Video Ad runs on the front page in the most prominent
position. There is a companion banner that is clickable to an external site. Currently this
unit is bought for a single day. It draws powerful response and can move a video tied to the
advertisement into the Most Viewed category for the day.




                                                                                             65
Google text ads run on many pages on the site. These are the same ads Google runs on
other sites and are keyed to the content of the page. Almost half of those who said they
were aware of these ads also rated them at least somewhat effective.

Ads with images and video links also run down the sides of some pages. 51 percent of
those who said they were aware of these ads rated them at least somewhat effective.

Video Ads can run on category pages and search result pages. Clickthrough can happen
from the companion banner that forms the top of the ad.

InVideo ads are the most exciting recent innovation. They run on partner watch pages.
When a user visits the page and begins watching the video, they will see a small Flash
overlay on the bottom fifth of the video screen that appears 15 seconds after the video has
begun. The user can click to display an ad or click directly through to a URL.

YouTube recommends buying a companion display ad with an InVideo ad. If you don't buy
one no other advertiser's creative will appear next to your overlay.




                                                                                           66
What's exciting about the InVideo ad is that it's evidence of YouTube's efforts to find
solutions that work for marketers and users and use behavioral targeting. The InVideo ad
that's served is keyed to the content of the video on the watch page, so it's more likely to
be of interest to the YouTube user. 60 percent of those who said they were aware of this
kind of ad told us it was at least somewhat effective.

There's an advantage for marketers too. The most common video ads are pre-roll ads which
have attrition rates of up to 70 percent. The InVideo ads are unobtrusive, but related to
content that interests the YouTube user, so the user is eight times more likely to watch the
ad and click through than with a standard display ad. If the companion display ad is used in
tandem with the InVideo ad, the figure increases to 46 times more likely compared to a
simple display ad.



Other Advertising on YouTube

Product placement where products are used or talked about within videos are rated as
somewhat effective by 65 percent of the YouTube users who were aware of them. Product
placements may be popular with users, but YouTube doesn't get that excited about them as



                                                                                               67
they're not a source of revenue for YouTube. That doesn't mean you should avoid product
placements in your advertisements and videos. Product placements have worked effectively
in films and video games and they should also work well in YouTube videos.

There's another type of ad that appears on YouTube but is not an advertisement in the true
sense because it is not a paid placement. It is classic TV ads that are uploaded by individual
YouTube users. 67 percent of YouTube users who are aware of them rated them as at least
somewhat effective.

Some companies exploit this to their advantage. Nike is a good example.

Nike has posted some of the most popular videos to the site. "Ronaldinho: Touch of Gold" is
one of the most viewed videos ever. And Nike has posted other commercials, behind-the-
scenes footage and other videos on YouTube. But that's not all. Stefan Olander, global
director of digital media content at Nike, says: "We give consumers content and the ability
to rip it and put it out themselves. We make it simple, easy to use, to set up and share. We
want to make it contagious. The opportunities are limitless."

Letting go of your content may have benefits but it makes many marketers nervous
because they're not sure where their content may end up and in what shape and what that
may mean for the brand.



Ad Placement

Many professional content creators and producers want to be able to control the images and
text that surround their videos. What you're brand is adjacent to is important when you
consider where and how to distribute content online.

YouTube offers you many placement options. It is using technology to develop newer and
more sophisticated ones, like Buzz Tracker, introduced in May 2008.

There's some good news on this front for professional marketers and content creators.
Recent research by the firm Ipsos says that people are far more tolerant of ads when they
accompany professionally created content than when they come with homemade video.
That makes an even stronger case to use high quality ads that are placed next to high
quality content.



YouTube and Video Advertising in the Future

Video advertising has come a long way and there are more changes ahead. YouTube is not
just an effective place for you to advertise today, it's also a place where you can be on the
cutting edge of video advertising.

Sophisticated video ad producers are now creating content that can be edited to
different lengths for different uses. Consider what's happened with the American Super
Bowl ads.

It used to be that American Super Bowl ads cost a couple of million US dollars for a thirty
second spot and even more to produce and were run once during the Super Bowl. There




                                                                                              68
was no video life after the Super Bowl. That changed dramatically in 2008 when many of
the advertisers created their ads with an eye to post game use.

Many advertisements got higher viewership when replayed on DVRs than during the game.
YouTube and other sites offered users the opportunity to view the Super Bowl ads. For
example YouTube viewers were offered an incentive to vote for their favorite spot at a
special section on the site. The winning video was displayed on the home page the
following Tuesday.

The other side of video on demand turns out to be a good one for marketers. In the days of
appointment television, you only had one shot at a viewer, if he or she happened to be in
the room when your commercial ran. Now your commercial can run whenever a viewer
wants to see it and he or she can share it with friends and talk it up

Targeting is shifting from demographic to behavioral and lifestyle. Tim Armstrong,
Google's president of advertising and commerce, North America, says that Google has
shifted its advertising model from targeting traditional demographic groups to targeting
consumer interests and needs.

At the same time, Google and YouTube are coming up with better tools to help you find out
what's going on and to use what you find to improve your marketing. YouTube Insight, was
released in March 2008. It lets you track how, when and by whom a video was watched.




YouTube already dominates its market. They've now achieved a position where quality video
producers want their videos on the site. However, things are still changing. YouTube product
manager Shiva Rajaraman said "We'll be trying new formats, new ways to engage users. No
one knows quite how to crack video advertising yet.''



                                                                                           69
                          Marketing Using YouTube

When the web was starting to be used commercially in the early 1990s, commentators
generally took one of two views. Some were sure that the net and the web would have little
impact on marketing. They thought the future of business and marketing would be like the
past. They were right and they were wrong.

Others took the opposite view and thought that the net would change everything such that
marketing in the Digital Age would be radically different from the past. They were right and
they were wrong.

The same debate exists today about marketing on YouTube. Successful marketing on
YouTube requires a bit of both beliefs. YouTube offers opportunities and threats that never
existed before but the basics of marketing won't change.


The Fundamental Things Apply

The fundamental things that don't change, regardless of technology, are the ones that are
grounded in human nature. In other words, marketing today and tomorrow will still depend
on people and people haven't changed much for thousands of years. They still have the
same motivations and the same types of perceptual limits.

People need to be comfortable with you before they buy from you. So part of your
marketing needs to concentrate on building brand awareness using multiple contacts
through different channels.

People make buying decisions emotionally and justify or test them with logic. So
your marketing needs to have a strong emotional component.

People tend to buy more and more often the longer they are customers. Since
marketing to existing customers costs a fraction of the cost of acquiring new customers,
marketing to existing customers should be a key part of your marketing program.

There's one more thing that doesn't change. People still buy your product or service for
the same reasons. That's good news because it means that the lessons you've learned
about why and how people buy what you‟re selling are still good.

The challenge therefore when you're beginning to use a new medium or channel like
YouTube is to review the differences from what you're used to and ask three questions.

   1. What new opportunities and threats does this new technology offer?

   2. How can I use what I know about my customers to use this technology effectively?

   3. How will what I do with this technology fit with everything else I do?

Consider those questions against the backdrop of what we know about YouTube and what
works there. Here are the important things to keep in mind to market successfully using
YouTube.



                                                                                           70
Video is Central

YouTube was founded to be a video sharing site. That makes video central to any successful
marketing on YouTube. Simply put, users visit YouTube to view videos. 49 percent of users
rate YouTube as excellent or very good for videos they love to watch. 79 percent rate the
site as good or better on the same dimension. Pretty impressive indeed.

There are two different kinds of video for marketing purposes. Those that offer pure
entertainment and can therefore attract the attention of users and secondly those that
answer a specific question, How To and other instructional or educational formats.

61 percent of all YouTube users, including almost 80 percent of males under 25, cite
entertainment as the main reason they visit YouTube. Entertainment is also the top reason
why users say they would subscribe to a brand channel.

Blendtec is an example of a company that does a good job of producing entertaining video
that grabs attention for a product that usually isn't considered interesting - the blender.
Blendtec, based in Utah makes blenders but not just any blenders. Blendtec makes powerful
blenders and they prove it with their entertaining videos built around the theme: "Will it
blend?" These videos aren't about cooking or recipes. They're designed to show off the
power of Blendtec's blenders by showing how the blender is powerful enough to grind up a
running shoe, or a cell phone, or golf balls. You get the idea.

The blender isn't the only thing that's powerful. The videos are powerful, too. Over fifteen of
them have more than a million views. The Blendtec brand channel has over 100,000
subscribers.

Entertainment grabs attention but helpful assistance can keep people coming back.
AsktheBuilder achieves this with videos that teach home repair techniques. The channel and
the web site actively seek subscribers to generate ad revenue and direct sales. They're a
perfect kind of video if you want to show a customer how to use your product or if you want
them to revisit your brand channel so you can offer them other things.



Word of Mouse is Crucial

50 percent of YouTube users visit YouTube to watch a clip they've heard about from a
friend. The viral impact is clearly massive.

     Exploit this firstly by uploading your videos in many places. The more people who
     get to watch your video, the more likely it is that it will be recommended to
     others. Some examples are below but there are also many more video sharing
     sites that should be considered alongside YouTube. TubeMogul
     (www.tubemogul.com) is one service that can upload your video to multiple video
     sharing sites.




                                                                                            71
Youtube Insight now supplies statistic on how viral a clip is. It identifies when a video s
shared via email or IM.

Secondly, link your site to the video version on YouTube and increase the view count for the
video and the possibility that they will also comment favorably and list you as a favorite.
The top video bloggers use Youtube annotations, a technology that enables channel owners
to make on screen comments to their videos, to remind people to rate their video, leave a
comment and subscribe to their channel.

You can take it further still. One consulting firm that publishes self-improvement materials
for business managers conducted a weeklong promotion to increase the viewing of the
videos on their brand channel. They used email and their own blog to ask people they knew
to visit the site, watch the videos, make them favorites and tell others about the promotion.
Doing these things earned points and the person with the most points at the end of the
promotion won an Amazon gift certificate.



The Community is in Control

YouTube's Julie Supan puts it this way: "The key difference about our site is about
community in control. We let the community decide what's popular." The community votes
by viewing. If YouTube users like the video and find it worth sharing, they tell others about
it. If enough of them do that, the video can "go viral." That's great when it happens but it's
hard to engineer.

As American Sporting Goods (ASG) Chief Marketing Officer Mark Woolsey says, "… it's really
the consumers who make it spread. If they think it's cool, they'll pass it along." He should
know. A video that appeared on ASG's And 1 label web site wound up on YouTube and took
off. Since the video was of several spectacular basketball dunks it would seem easy to
replicate but so far, despite many fantastic dunking videos, nothing has proved as popular.

Often a member of the YouTube community will take a video from a business's site and
posts it on YouTube. You can decide if that's good for you or not. When Gap ran an ad that
they called the "Audrey Hepburn skinny black pants commercial," a user posted a version to
YouTube before the company uploaded the official version. Trey Laird of the New York ad
agency responsible for the ad tells what happened next. "People would act it out in their
living rooms and post their own versions of it. Jay Leno and Jimmy Kimmel did parodies and
they got it posted, and it started circulating around. It took on a life of its own."




                                                       Key Point

                        When you post a video to YouTube, consider it a permanent posting. If
                         someone copies your video, it can live forever on the web whether
                                            that‟s what you want or not.




                                                                                              72
Integrated Programs will Work Best

As with most marketing, the magic in YouTube marketing is in the mix. Programs that are
integrated are more effective because the individual pieces and impressions reinforce each
other. Here are several practical ways to integrate your activities across your different
marketing channels.

      Use your YouTube video to build traffic for your brand channel. Link from your
channel to your web site. Embed your YouTube videos on the web site.

       Use a technique called "corralling." It uses a short message in a mass media
channel, such as a TV spot, to point the audience to a specific and on-demand digital
location. It's the YouTube-age equivalent of the drivetime radio ad that includes a toll-free
phone number that the driver can call whenever he or she chooses.

       Some videos that you use for promotional purposes may also be used by the
YouTube brand channels of publications or organizations you use for marketing. Farmer's
Weekly is a UK agricultural publication and Farmer's Weekly Interactive (FWi) maintains a
web site and YouTube brand channel. The brand channel offers videos with weekly news
recaps and advertisers' promotional videos. These are about three minutes each for farm
equipment such as tractors and combines.

      You should integrate your campaigns across three screens. In addition to television
and computer screens, more and more people are using the screen on a wireless device or
MP3 player to view videos.


The principles we've discussed here will be valid regardless of your marketing challenge. In
the next few chapters, we'll explore some specific challenges, starting with using YouTube in
your mass marketing.




                                                                                            73
Using YouTube for Mass Marketing

Mass marketing used to be pretty straightforward. In the 1960s, most of it could be done
with television. In the US, it was possible to reach 80 percent of adult women with a single
spot aired on the three major broadcast networks. Today, a hundred cable channels plus the
internet will still not have the same reach.

Since the 1960s, cable television has fragmented the power of broadcast television. The
web then split things further still. Television wasn't the only victim. Just about every
medium has been fragmenting. Print for example has been "niching down" with special
newspaper sections and demographically targeted magazines. A study from Sanford C.
Bernstein predicts that narrowcast media will grow three to four times faster than mass
media through 2010.

Reaching a broad market today, requires an unprecedented number of tools and channels



Your Challenges.

There are two universal challenges. The first is to maximize the return on marketing
investment. This requires the shifting of resource allocation from one medium to another. It
should also mean using your video and brand recognition resources effectively.

The second challenge is to ensure that in an increasingly on-demand “pull” culture your
message (and information) is available to consumers when they choose to access it.



Give them What they're Used To

Some of the most popular material on YouTube is television commercials. There are literally
hundreds of thousands of video clips on YouTube that are actually commercials. They come
from all over the world, in a variety of languages.

So if you have an archive of commercials this is a great time to mine it. Pick out the ones
that are entertaining, funny or highly rated. Put them on YouTube first. Before you post
them, consider whether they should be modified to work in the YouTube environment. You
may for example want to add a web address.


                                              Action Idea

     Shoot video of the process of making commercials and covering events. Your fans love “behind
                                          the scenes” videos.


Commercials are good YouTube content because they're short, usually well made and
designed to sell. So don't just put them on YouTube. There are other sites out there where
you can post video. The more you do, the better it gets. The more video you have out there
in appropriate places across the web, the more likely it is to be found. And every time a
video is viewed it adds to your number of brand name impressions.



                                                                                           74
MTV set out to test this and reported the results of its first round of research in mid-2008.
MTV Networks conducted research with over 20,000 people aged 13 to 49. They found that
"audiences develop stronger emotional connections to content and advertising messages
when they consume and interact with them across multiple platforms."


And Then Give Them More

Even if you use commercials as the core of your effort to involve new media channels in
your mass marketing, you can go beyond the precise commercials you used on television.
Look for ways to give viewers something that goes beyond what they may have seen on TV.
That's what savvy marketers like Nike do. Nike posts "behind the scenes" clips of its
commercials. Sometimes they create a special "making of" version of a commercial.

Jack Links is an excellent example of how this can work. Jack Links is a US company based
in Wisconsin. They make a number of different meat products including a beef jerky. It's
currently America's best selling brand of beef jerky thanks, in part, to some clever
advertising that uses entertaining commercials as its core. They've built their campaign
around the theme of "Messin' with Sasquatch"; the Sasquatch being a mythical monster
that supposedly inhabits remote regions of the US. The ads all have a similar format. Here's
an example of a common script.

Two young men drive down a forest road and slow down to offer Sasquatch a ride. Each
time he reaches for the door handle, the car speeds up and the young men laugh
uproariously. That is, until the Sasquatch breaks the window, throws the passenger deep
into the woods, and climbs into the car. Troy Link, company president, describes the goal of
the campaign. "We had a great product but people didn't know who we were. The role of
the Sasquatch campaign was to increase brand awareness and preference". It worked. The
campaign has been running for two years and Jack Links' sales have increased 47 percent.

YouTube has been an important part of that success. As of early 2008, the video described
above has been watched over one million times. It's a great example of using YouTube as
part of a campaign to get your target market to know about you.

The YouTube videos that Jack Links uses were originally created as television ads. They're
part of a total campaign that includes in-store displays, tradeshow appearances and more.
All the YouTube videos have the same logos, taglines, look, and tone so that they reinforce
each other and build the brand. But there's more. There are three different kinds of
commercial involved in the total campaign. There are the basic television commercials of
course. Some of them are posted on the campaign web site and on YouTube as is. There are
other commercials that are designated as "web only." And there are "extended versions" of
some commercials that are longer and have different endings. What Jack Links has done is
take a well-crafted mass marketing campaign with television commercials at the core and
used those same commercials to extend the reach of the brand.




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Involve them with Contests

One of the most effective and popular ways for mass marketers to leverage their YouTube
presence is to create a contest. Most of the successful ones are some variation of "tell us
what you like" or "create a commercial for us."

The US-based Chipotle restaurant chain did that with its "30 Seconds of Fame" campaign.
They invited college students to create 30-second Chipotle commercials and then post them
on YouTube. Some of the videos turned out to be astoundingly popular. Two gathered more
than 15 million views between them. Overall, the submissions gathered over 17 million
views. The cost for all this was just $50,000.

Jim Adams, Chipotle's Director of Marketing figures that's quite a bargain. To get the same
number of impressions with conventional media, he estimates that Chipotle would have
needed to spend more than seven times as much.

If you sell your brand to a mass market, YouTube can be a powerful and effective addition
to your arsenal. You'll be able to reach new people in a cost-effective way and you'll be able
to leverage your creative assets to improve overall marketing impact.




                                                          Key Point

                              Don‟t run a “make a commercial” contest unless you‟re ready for
                                      some clips that make you uncomfortable or angry




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             Using YouTube to Reach the Niche Markets

Chris Andersen, a former writer for the Economist and editor at Wired magazine, noticed
how the net had changed business economics. He watched as mass markets fragmented
into increasingly smaller chips of markets leaving many markets unprofitable. The cost of
carrying the inventory to support an increasingly complex array of products and the costs of
marketing led companies to focus on the big winners, the hits.

Over a 10 year period in the late 20th Century 63 of the top 100 best selling titles were
written by only 6 authors. Most published books hardly sold at all. Andersen noted
something different about online book sales. The largest physical bookstores can only stock
a little over 100,000 volumes and offer them for sale. Amazon can stock and offer millions
of titles for sale. Andersen noticed that they sold lots of blockbuster best sellers but they
also sold other titles. In any 6 month period, almost as many sales came from thousands of
titles that only sold a book or two each. Andersen called them "the Long Tail" and wrote an
article and then a book about it and what it means for business in today's networked world.

The "long tail" is the tail of the graph of what statisticians call a power law. It's the
distribution behind the 80/20 rule. It shows graphically that in any collection of things -
page visits on a web site or sales allocated by product – a small number of items account
for the giant's share of activity. Andersen's idea was that on the web, it‟s profitable to sell
items that were unprofitable before. Sometimes this was because the inventory and
marketing costs were lower and sometimes because the net makes it possible to reach a
larger customer base.

"The Long Tail" has become something of a marketing fad such that most marketers now
see it as Andersen originally presented it - something that probably doesn't apply to them.
However, there are thousands of small niche markets out there and customers with very
specific needs waiting to be met.

So if you market into those small niches in the long tail, YouTube can be your friend. To
make it happen you'll have to modify some of the tactics that work for others to make them
effective in reaching the specific people who want what you have to sell.


The Challenges of the Long Tail

Marketing to a niche using YouTube involves many of the same issues as other marketers
but two issues stand out in particular.

Getting lots of views is nice but you need to get viewed by lots of the right people. This
means you must do everything possible to help them find you. When they find you, they're
going to be less interested in being entertained than they are in finding out if you can help
them. Entertainment is still important but answering a question for them or solving a
problem for them is more important still.

Eric Triplett has what many would call an exotic business. In fact, the name of the business
is Exotic Aquatics. Part of what they do is help people build waterfalls and ponds that will
look good, be easy to maintain, and support turtles and other life. Triplett really has two



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markets that YouTube helps him reach. He wants to reach people who crave a turtle pool in
the back yard. He can install the pool or sell them the equipment they need. He also does a
thriving business with big companies like Disney, who use him to design and build
decorative ponds, called waterscapes. YouTube helps him make the sale but first, he has to
help people find his business.



Search is Key

When someone decides to build a turtle pond, they don't go about it by looking for an
entertaining video. Instead they look for information about what's involved. They probably
don't have a friend who's recently watched a video about building a turtle pond so they look
for videos on the web or on YouTube that will help them.

People who find Triplett through the web site wind up on YouTube for his videos. People who
search for video information on turtle ponds on YouTube will almost certainly use the search
box. This will be your situation if you're going after that long tail. You'll have to help people
find you by providing links to your videos and by making it easy to find the videos using
YouTube search. Here's what matters.

       Use a clear title with your keywords in it. The title of one video is
       "Turtle Pond Design."

       Put the video into a category that makes sense. "Pets and Animals"
       is the choice for this video.

       Include a good description of the video with words that people may
       search for.

Here's the description for the turtle pond video. Triplett has incorporated promises of ease
and safety into the description.

"Designing a pond for turtles is easy when you know tips and tricks from professional turtle
pond builders. Tour this unique aquatic turtle habitat and review pond construction design
techniques that will improve your understanding of the optimal environment for these fun
and friendly reptiles."

       Tags, which would be keywords on the web, are important, too.

Here are the tags for the turtle pond video.


"Turtles Pond Reptiles Red-Eared Sliders habitat aquatic"

The description and tags are key because search is the way most people will find you on
YouTube. A good source for good working keywords is interviews with people who work for
you and deal directly with your customers at first contact. Another good source is the words
people type into the search box on your own web page.
Tags are important for Youtube to identify related videos. Related videos can drive
substantial traffic to each other.




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                                                   Key Points

                     The keywords that you use on the web and in your PPC advertising will
                                             make effective tags.

                         If you‟re a local business, make sure your videos have tags that
                                        include the name of your community.

                      If your company or brand name is often misspelled, make sure your
                                        tags include the misspellings.


The search function on YouTube is key when you're marketing to the Long Tail. What's also
important is the kind of video people watch once they've found you.

Video should be Helpful

People are looking for videos to help them solve a problem or answer a question. They
should also help you sell. Eric Triplett's Pond Digger videos do that.


                                               Action Idea

          Shoot videos of your salespeople demonstrating your product or applications at a client
        location. The video can provide an introduction for your salespeople and a client reference.


There are seven Pond Digger videos on YouTube. Each one addresses specific issues.
There's the one on turtle pond design, and one each on equipment installation and pond
maintenance. There are also four videos on "ponds gone wrong." The videos here are longer
than most YouTube videos. The two shortest videos are around five and a half minutes. The
longest videos are almost ten minutes.

While a lot of marketing on YouTube uses entertaining videos to attract visitors, Long Tail
marketing is different. The good news is that people will come looking for you but you have
to help them find you and then offer them videos that give them what they need.

                                             Action Idea

                       Put links to your videos in your email signature file.
       Announce new videos posted to YouTube in your newsletters. Link directly from your e-
                  newsletter to the video or to the video embedded in your site.



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           Using YouTube to Reach Business Customers

Most articles about YouTube concentrate on teenagers and young adults using and sharing
homemade videos. Other articles concentrate on marketing to adult consumers. Largely
ignored therefore is any mention of the B2B sector.

As we've mentioned, YouTube is at the beginning of a growth cycle that will mirror many of
the ways that the web itself developed. The age demographic will more closely match the
demographics of the web as a whole and B2B will become more prominent.

Historically, video has not been a key part of much B2B marketing. Much of that is due to
longer purchasing cycles and more professional purchasing. But YouTube could change that.
Consider this from Doug Scott of Ogilvy North America.

"Online video costs less than doing a 30-second TV spot, but a more important question is
the value of a video asset versus that of an ad, The longevity of an ad is three to six months
at best, but the longevity of a story being told about business solutions is much longer.''

YouTube can give you ways to use the power of video to tell your story and to have that
story available to your prospect or customer on demand. Online video can be available to
your sales force whenever they need it.



B2B is Different from Consumer Marketing

B2B marketing on YouTube, just like in the physical world and on the rest of the web has
some different dynamics from B2C marketing. Arguably, these are the two most important
differences:

B2B is usually a more complex sale. The sale often involves more than one decision
maker and extends over a longer period of time than most B2C sales. Professional
purchasing agents or users (such as engineers) are more likely to be involved.

B2B is normally a more rational process than B2C marketing. Businesses generate
specifications for important things that they buy. There may therefore be a formal bidding
and evaluation process.

Because of the more formal nature of the B2B process, information may outweigh
entertainment in the promotional communication.

The key to successful B2B use of video online is to tell your story in a way that's highly
memorable. Then put it on YouTube and your site so it's available 24/7. Here are some
examples of how different kinds of companies are using YouTube to improve their B2B
marketing today.


Services and Outsourcing: Martello Limited

Martello Limited is a fifteen-year-old company in Dorset, UK that specializes in rapid
prototyping. They've got three videos on their YouTube page. The most popular video, with



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more than 3,000 views, is titled: "Rapid Prototyping SLA 250 Machine." The company
doesn't have to tell businesses who might be interested in their services that "SLA" stands
for "Stereolithography Apparatus."

The added comment that "This is Martello's in-house SLA machine in action. SLA prototype
are proven to work as design verification models or as masters for tooling using vacuum
casting technology" supplements other information on YouTube. There's a detailed
description of the video itself and well-chosen tags to aid potential clients in finding it.

The YouTube page also has a link to the company's main web site where there's lots more
information. The videos used on YouTube are also used on the site.


Products: Specialty Screw

Specialty Screw company is located in the central United States. They manufacture
fasteners for a wide variety of applications using cold forming processes, a manufacturing
process in which metal is shaped at low temperatures to produce metal components to close
tolerances.

The videos on YouTube describe the capabilities of the company, including its QS 9000 and
A2LA certification. The videos do not need to tell viewers what any of those specifications
are. They can safely assume that anyone who is likely to be a qualified customer will not
need a definition. Tags include terms familiar to Specialty Screw customers such as
"matscrew" and "mathread."

The videos link to the company's main web site which functions as the main information
repository. The YouTube videos illustrate processes and key points.


Software: Giants and Others

Software manufacturers are also finding a home on YouTube. Salesforce.com, a pioneer of
"software as a service" is one of them. Salesforce.com has over forty videos on YouTube.
They include interviews with Salesforce.com CEO Marc Benioff, clips from shows and
conferences, customer testimonials, and a variety of other material.

Martell and Specialty Screw have videos aimed at engineers and purchasing agents, while
Salesforce.com is targeted at marketing managers and high level executives, as well as the
media. That means there are differences in language and video content. The manufacturing
companies use manufacturing jargon and abbreviations while Salesforce.com uses more
general business language. Martell and Specialty Screw have fewer, more "industrial"
videos. Salesforce.com has a much broader range of content.

Salesforce.com can afford to set up YouTube as video information repository. Lawson, a
much smaller US manufacturer of business software, needs to do more to capture attention.
In fact that was part of the reason that Lawson wound up on YouTube. According to Travis
White, Lawson's senior vice president of marketing, "We asked, 'What do we have that they
don't have?' and that was a sense of humor." So the company set out to make entertaining
videos that might draw prospects and get recommended to others.




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They are producing a series of cartoon videos with a main character named Lars Lawson.
The character represents the values of the company, which are described in detail on the
company web site. The first video, called "Get the Cat" was about the different ways Lawson
and its competitors would rescue a cat from a tree. It won a gold award from the Integrated
TV and Video Association. The third video in the series, "Well Done," has been viewed over
1.2 million times, about 30 times more than the most popular Salesforce.com video. Lawson
doesn't leave promoting the video to chance. The company uses its sales force to spread the
word when a new video is available.


Business Documentaries and More

International Business Machines (IBM) is a massive user of YouTube. The company has
multiple channels set up for different purposes, such as supporting a conference, providing
information on a particular company initiative, etc. One of the most interesting ways IBM is
using YouTube is collaborating with its agency, Ogilvy North America, to produce a series of
"mini-documentaries." The documentaries tell stories of clients who have used IBM
technology and expertise to succeed.

The videos feature companies (and other organization such as the La Fenice opera) from
around the world. Running time is between two and seven minutes.




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             Using YouTube if you're a Smaller Business

There isn't a single way that smaller businesses compete with larger ones and thrive. When
you don't have the resources that your competition has, you have to find other ways to win.

Successful smaller businesses know that they can usually move more nimbly than their
competition. They can be more creative and because they're usually closer to their
customer, they can come up with better product and service ideas.

YouTube offers some amazing opportunities to harness the power of video, no matter what
the size of business. There's no one way to do this but here are several small businesses
that use YouTube to market more successfully.


                                              Action Idea

    Embed your YouTube videos in your website. Then when people view them you can surround
                        them with other marketing messages and links.


Tie YouTube Video to Promotions

White Allen is a group of auto dealerships in Dayton, Ohio in the US. The company sells a
variety of cars and uses local television advertising to help. It's part of a mix of marketing
tactics. According to David Idell, director of internet marketing for the auto group: "You
have to do those types of things - blogging, YouTube, Facebook. Putting a commercial on
YouTube is simply a matter of signing up, logging in and posting it.''

The videos on YouTube are the local television ads. They're tied to the current promotion.
So is the blog and newspaper advertising. White Allen would spend money on the television
ads anyway. Putting them on YouTube gives them more exposure for no additional cost.


Television Ads on Demand

Precision Camera, in Austin, Texas, uses television ads as part of its marketing program.
The ads are humorous, mimicking some popular television advertisements for Apple
Computers. Precision's ads compare their store to an impersonal big box retailer or an
online auction. The tag line is: "If we don't know the answer, you aren't asking about
photography."

Jerry Sullivan the CEO of Precision Camera says they first put videos on YouTube so they
would have a way to show them at a convention. The ads got such great response they then
put them on their web site. Funds from camera manufacturers helped offset the cost of the
ads. When the ads ran, the store got a big increase in business. "We have seen many new
customers. I have lost count of how many people mention seeing the commercials," says
Sullivan. Now the ads, with their entertainment value, are permanently on YouTube. The
video comparing Precision Camera to an online auction has been viewed over 3000 times.




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Drive Traffic to a Web Site

CleanAirGardening.com is an online retailer of environmentally friendly gardening supplies.
The Dallas, Texas company began using video to demonstrate its expertise. On YouTube,
Cleanairgardening has more than 80 videos that show you how to use the products that
they sell. Several of the videos have over 1,000 views. One, demonstrating a push lawn
mower has move than 12,000.

On their channel, Cleanairgardening says that the YouTube site is "All about the products
from Clean Air Gardening and how they work." Then they point you to their web site. The
web site is where the company will sell you the products demonstrated on YouTube. They
also have a blog which promotes the site and sometimes points readers to the YouTube
videos. Cleanairgardening is taking advantage of the multiplier effect of having the same
message in many places. The YouTube videos point to the site. The blog points to the
videos and the site. And the site promotes the blog.


Generate Advertising Revenue

White Allen sells cars. Precision Camera sells cameras. Cleanairgardening sells gardening
equipment and supplies. Meghan Carter doesn't really sell anything but she does deliver an
audience. That's how Meghan Carter, or AskTheDecorator, makes her money. She creates
helpful videos that draw an audience. Google serves up InVideo ads that run alongside and
in her videos and pay her.

Ms Carter started out by going around the country and interviewing experts on camera
about things like concrete counter tops and storage systems. After a while she got
comfortable in front of the camera and started doing the spots herself. Her most popular
video is "How to Make a Bow" with over 100,000 views. Next is "How to fold a Towel" which
is coming up on 100,000. Her plan is to keep adding to her store of helpful videos. Her web
site is organized around the videos. There is a weekly theme such as "floral arrangements"
or "storage systems."


Professional Services

Professional services are often a tough sell. Most practitioners are specialized and local. In
addition, most people find a professional on a referral of some kind. However, YouTube
offers professionals a whole new way to reach potential clients.

In North Carolina, USA, criminal attorney Thom Goolsby has done a call-in television show
for years where people can ask their legal questions. He's put some of the video from those
shows on YouTube to demonstrate his expertise.

In California, USA, divorce attorney Kelly Chang Rickert uses YouTube to give potential
clients a sense of who she is. She thinks YouTube videos are particularly well suited for a
firm like her's. She says: "In the business setting you're not friends with your clients but in
family law they cling to you; you are their best friend, so they need to see what you look
like up front."



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If you're an attorney and don't want to make your video yourself, there are companies that
will do it for you. Lawyershop has a channel that displays over a thousand videos created
for US attorneys.




                        Key Points for Small Businesses


    All of the businesses we looked at tied their YouTube videos to other marketing.
   You will get maximum value from your investment in video if you use it to leverage
                               other marketing activities.



    With the exception of White Allen, who tied videos to transient promotions, all the
     other small businesses we looked at produced evergreen videos. Try to produce
    videos that can stand on their own, even if they're tied to other marketing efforts.



   All of the small businesses we looked at produced videos that delivered some value
           for the viewer. In the case of Precision Camera, that might just be the
       entertainment from a humorous video. The attorneys who created videos for
    YouTube helped viewers make sense of the legal system. Meghan Carter's videos
                  helped viewers learn things that helped them live better.



    YouTube is a way for small businesses to harness the power of video on a limited
      budget. That can turbocharge your marketing for a very modest investment.




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       Using YouTube to Increase Business from Existing
                          Customers

For most companies, most of the time, cultivating existing customers is the key to
profitability. Fred Reichheld of Bain and Company explained why focusing on existing
customers should be central to any marketing strategy in his 1996 book, The Loyalty Effect.
Reichheld found that the average company loses about half of its customers every 4 years
but for in most cases a 5 percent increase in retention will yield a 25 to 100 percent
increase in profit. There are several reasons.

New business costs more money to bring in. Depending on the study you read, marketing to
existing customers costs a third to a fifth of the per dollar cost to acquire a new customer.

The longer you have a customer, the more they are likely to buy with each purchase. Loyal
customers are usually less price-sensitive than others and often upgrade to higher-priced
products while responding to cross-sells.


                                              Action Idea

     Shoot customers giving testimonials. Then give those customers an edited copy of the video
   with the suggestion that they can post it on YouTube or their own site. Some of them will do so.



And your existing customers are also your sources for both testimonials and referrals. Dr.
Robert Cialdini of Arizona State University in the US points out that this actually has a
double effect. When your customer refers someone else to you, two things happen. First,
and most obvious, is that someone else hears about you and what you have to sell. But the
customer making the referral increases his or her own loyalty to you with the act of referral.

Remember everything we've said about word of mouse so far. 47 percent of users visit
YouTube to see a video that a friend told them about.

In addition to posting videos that members of your target market will want to refer,
encourage your customers to refer their friends and colleagues to your videos. And do other
things that we know enhance your relationship with existing customers and encourage them
to remain customers for a long and loyal time. Everything we suggest here should tie to the
rest of your marketing and customer service strategy.


Defuse the Danger Zone

The time immediately following a first purchase is the "Danger Zone." That's the time when
a customer is most likely to defect. There are two reasons. There's normal post-purchase
anxiety. He or she is not sure that they made a good purchase and because this is the first
time they've used a product or service, there's a natural, but uncomfortable, learning curve
to climb.




                                                                                           86
Defuse the Danger Zone by helping your customer use your product or service or learn
about how to use it. Quickbooks, a division of Intuit, is a good example of how it can be
done. Quickbooks is a bookkeeping software package sold in several countries. The
packages are well designed and easy to use with excellent built-in help and are well
supported on the Intuit site and a network of approved consultants who can help a small
business person.

Quickbooks' YouTube Channel has three kinds of videos. There are entertainment-based
videos designed to get people to check out the channel. There are basic sales videos that
show the product in action. There are specific how-to videos that teach basic tasks and how
to use the package more effectively.

The most viewed video on the Quickbooks channel is a how-to video about customizing
invoices. Quickbooks' YouTube strategy seems to be that it has videos which will get you to
visit their channel, videos that will tell you about the product so you make a wise decision to
buy, and videos that will help you use the product, especially in the beginning.


Support Dealers

Many products are sold through dealers who then are responsible for supporting the
product. YouTube can provide an effective way for manufacturers to support their dealers so
those dealers can support the end users.

Navistar makes commercial medium- and heavy-duty trucks that are sold through dealers.
Those dealers also provide parts and service for the trucks. The official Navistar videos help
them do both jobs. The channel has videos that dealers can use to help them sell Navistar
trucks. They can either show the videos to a customer or send them a link to view the
video. There are also videos about how to run a more effective dealership. Navistar has a
program called "Best of the Best." The program features top dealerships, talking in front of
the camera about techniques to improve business.

Both Quickbooks and Navistar use YouTube to post videos that will help customers and
dealers do things better. Companies also use YouTube to help their customers be part of the
action.


Part of the Action

The idea behind "Part of the Action" strategies is that you can build loyalty if customers are
able to learn more about your product or brand and participate in your company's efforts.
Zappos is a good example.

Zappos sells shoes online. They're noted for great and friendly customer service. They post
a wide variety of videos on YouTube for their fans to see. Zappos' videos include their
commercials and also television features about the company. More interesting though, are
all the videos by "Zappos TV" that show people who work at Zappos talking about what they
do, pulling pranks on each other and generally being human, There are behind-the-scenes
videos of some of the commercials, as well.




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None of the videos on the main Zappos channel do anything that seems intentionally
designed to achieve that social marketing goal of creating a community of supporters. In
fact, Zappos one effort in that direction seems to have had rather poor results.

Zappos made a special effort to solicit testimonials from their loyal customers. They only
received a few videos. They might have done better to use the tactic others have used of
creating a contest that rewards a YouTuber for the best Zappos commercial. Zappos used to
have more channels with different types of video in each. They're consolidating videos into
two channels so it will be easier for their customers to find. They're attempting to cluster
YouTube activity around their brand. That's one of two basic strategies when it comes to
building business from existing customers.


Dell and IBM Choose Different Paths

Dell and IBM chose different ways to integrate YouTube into their marketing. The different
choices reflect their different challenges.

Dell once had a reputation for superb products and customer service but over the years that
reputation eroded. Thousands of customers were frustrated dealing with Dell's outsourced
technical support operations but what caught the public's attention was the flaming laptop.
By late 2006, Dell had already issued recalls for over 250,000 laptop batteries because of
the possibility that they might catch fire but when someone posted a picture on the net of a
laptop bursting into flames, the computer maker recalled over 4 million batteries.

It was a public relations disaster. Dell put together a strategy to rebuild its brand image.
They set up a special web site. They got involved in several social media sites. The YouTube
part of the strategy builds on YouTube's strengths. Dell set up a channel called DellVlog,
built around a vlog (video blog). The vlog gets fresh posts most business days and
addresses new product releases, news, and similar topics. The most viewed video and three
of the five most discussed videos all relate to gaming.

Dell invites commentary. They ask you to "join the conversation" but there's not a lot of
conversation here, mostly because YouTube is better at sharing video than sharing opinions.
What's more important is that the vlog fits into Dell's overall strategy of being visible,
sharing information with customers, and soliciting comment as a way to re-build reputation.
It ties in to the other efforts. Dell's choice has been to have a limited number of channels
with a mix of videos because the company wants everything to tie back to one corporate
identity.

IBM has gone another way entirely. Instead of a single or a limited number of YouTube
accounts and channels with a basic corporate theme, IBM has chosen to have multiple
accounts and channels with each one concentrating on a limited range of things. Most are
the work of a single individual. Some concentrate on a particular product. There are
interviews with IBM people and with customers. There are ads. And there is coverage of
conferences.

IBM's thrust seems to be to give customers multiple options for videos so they can choose
what they watch. The approach is similar to what IBM did in the early days of the web. Then
they allowed IBM people anywhere to put up sites as long as they followed a few rules. The
rules, in turn, were encapsulated in a "No Excuses Toolkit" that included approved graphics
and copy for the "official" parts of the site.




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Keeping your existing customers and deepening your relationship with them is an important
way to profitability. YouTube can be part of your strategy for dealing with existing
customers. Remember to build your YouTube plan around video and select videos that
improve and deepen your customers' experience.




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                  Using YouTube for Market Research


The Social Media Era

The coming of Web 2.0, the continuing development of
tools from the Web Era and the rise of social
networking sites has brought us to the Social Media
Era. It presents a major new set of challenges and
opportunities.

According to a study released in February 2008 by US-based TNS, 85 percent of US
executives said that "reading and analyzing social media to understand unfiltered consumer
perceptions would have the most impact on the future of their businesses." 65 percent of
non-US executives agreed. Their excitement grows from the fact that social media give
marketers opportunities to gather information that is unfiltered and behavioral. Marketers
will also be able to intertwine advertising, product development, research, and loyalty
building.


A Social Media Example

For several years, Target has concentrated on selling US college students the furniture and
other goods to fill up their dorm room. Every year, as the students head back to school,
Target has sponsored dorm room design contests and offered special collections of
merchandise. This is a big market. According to the National Retail Federation, dorm
dwellers spend an average of $1,529 to get their room in shape.

In 2007, Target added a social media twist with a promotion on Facebook. They called it the
"Dorm Survival Guide" and offered college students advice on designing their dorm room,
living in a dorm, recipes etc.Target's approach was to use the space as a place for dialogue
and to soft-pedal pitches for their various wares. That attracted more than 7000 visitors and
increased sales in the stores.

That was one benefit for Target, but it wasn't the only one. Through dialogue with the
students, Target learned about needs, wants, and preferences that it would have been
almost impossible to get any other way. The Facebook page sold product and acted as a
giant focus group.


YouTube in the Social Media Era

Target's Dorm Room project delivered a combination of promotion and research that is the
hallmark of marketing using Social Media. YouTube, as a video sharing site with social
media characteristics can deliver similar benefits but in a different way.

Contests that ask YouTube users to create commercials for your product or service are
excellent ways to find out what people in your target marketing think of the product. There
will be a winning video, of course, but there will also be lots of information about what



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people think are the key characteristics of your product and what benefits they see as most
important.

It may not all be pretty. General Motors ran a contest on YouTube asking for commercials
for one of its Sport Utility Vehicles. It received a lot of "hate commercials" with tag lines like
"if you hate Mother Nature." Pretty or not, the contest commercials gave the company
information about how the brand is viewed.

Contests are useful ways to gather information for sifting later. They also require a lot of
work and investment. The simplest way to use YouTube for social marketing is to conduct
the equivalent of a direct marketer's split run tests. Movie studios are already doing this on
YouTube. Movie trailers are among the most popular types of video on YouTube. 19 percent
of users say that they're "very appealing." They're also an important part of marketing a
new movie release. YouTube is a flexible and inexpensive place to test the appeal of
different trailers for the same film.

The principle is simple. Run different trailers that you're considering for your film. Monitor
which ones get passed around and generate the most views. Check out the comments to
see what users are saying.

This same principle will work to test advertisements or promotional ideas. You can fine-tune
your YouTube videos, too. Once you know which videos work best, try tweaking the titles
and thumbnails and tags. See which changes generate higher view counts. You can do even
better if you use YouTube's new Insight tool.

YouTube Insight provides a detailed view of whether and where a video is popular. The tool
gives marketers information about where and when a video is watched. In the US this is
broken out by state. Outside the US, results are currently presented only by country.

Using Insight, a marketer can discover geographical or temporal patterns that suggest when
and where to use a specific advertisement. Rock bands, who are often the lead users in
YouTube marketing, are already using the tools to decide where to tour.

YouTube will certainly develop new tools for marketers as part of a strategy to monetize the
site. Companies that market on YouTube will develop new ways to use the site to gather
information as well as sell product. The exciting news is that we are just at the beginning of
the Social Media Era and just starting to imagine the possibilities.




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                            The Future of YouTube

As part of Google's tenth anniversary celebration, the Official Google Blog asked ten experts
for their prediction about what the future would be like. Here's part of YouTube founder
Chad Hurley's response.

"Today, 13 hours of video are uploaded to YouTube every minute and we believe the
volume will continue to grow exponentially. Our goal is to allow every person on the planet
to participate by making the upload process as simple as placing a phone call."

That doesn't sound much different from the vision YouTube's founders had in the beginning.
It's been the core of YouTube all along. We don't expect that to change. Video and video
sharing will remain at the center of YouTube. The centrality of video will be one of
YouTube's strengths and differentiate it from "social marketing" sites like MySpace and
Facebook.

Sheer size and Google's financial and marketing muscle will set YouTube apart from its
competitors in the video space. We expect YouTube to be first with many marketing
innovations and quick to adopt the innovations of others. Here's some more of what Hurley
had to say.

"This new video content will be available on any screen - in your living room or on your
device in your pocket. YouTube and other sites will bring together all the diverse media
which matters to you, from videos of family and friends to news, music, sports, cooking and
much, much more."

Among the drivers of YouTube's future are changes in technology. We expect the use of
mobile devices, especially video-capable phones to be a key factor in YouTube's increasing
penetration into the lives of consumers and the marketing plans of businesses. The
increasing sales of PCs around the world and the PC replacement cycle in developed
countries will also work in YouTube's favor. Overall, PC prices are dropping and the PC
market is becoming more like consumer electronics in general.

As consumers replace their older PCs, their new ones are likely to have memory and
graphics capabilities more congenial to video. They are also more likely to have web cams
that make video sharing possible without special equipment.

People who share video online, most commonly on YouTube, will also be viewers of YouTube
videos and advertisements. Expect changes in technology to work in YouTube's favor for the
foreseeable future.

The comment about YouTube being on a device "in your living room" takes us from the
realm of technology trends to the realm of strategy. It speaks to YouTube and Google's
willingness to strike deals to expand YouTube's reach and penetration.

YouTube has shown a willingness to reach out to new channels of distribution, such as
through DVRs. They have expanded offerings by finding ways to work with content
providers such as Lion's Gate to turn potential conflicts into win-win solutions.

Expect YouTube to continue to develop new delivery channels and new partnerships. That
will change the look and reach of YouTube which will mesh with changes we see in the



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YouTube user demographics. Expect YouTube viewers to become much more like the
mainstream over the next or four years. That change will make YouTube a more effective
marketing channel for businesses that sell to those who are older than teenagers and young
adults. The potential for business to business marketing will increase as well.


Competition will Increase

Whilst these changes take place you can expect the competition to increase. Companies will
come to YouTube for different reasons following different trigger events. Some companies
will decide to be on YouTube for primarily defensive reasons, namely to protect themselves
against others using their name or images. As we've noted above it's vitally important that
you use your own name on YouTube because that's what users expect.

Well-publicized marketing successes will drive increased corporate participation on YouTube.
So far many marketing successes have stayed under the radar because media coverage has
concentrated on the user-generated video and youth parts of YouTube.

Even success stories of giants like IBM or innovative marketers Jack Link's have gotten very
little coverage. IBM has had virtually no coverage at all in the media. Jack Link's has
received coverage for the quality of its videos but not for the integration of YouTube into its
overall marketing.

Those changes in technology, demographics, and competition will mate with Google's
business goals for YouTube.


YouTube will Change

Google has high hopes for YouTube and the resources to turn those hopes into business
reality. Chairman and CEO Eric Schmidt defines the objective in these terms.

"There will be new monetization forms. That is what we are seeking. That is the Holy Grail.
When we find it, it (monetization) is likely to be very large because of the scope and scale
of YouTube."

We assume that Google will proceed with the development of YouTube in standard Google
fashion. Expect YouTube to remain a simple and practical site. Google knows that will draw
users and users will draw advertisers.

Expect Google to develop even more sophisticated tools for you to use. YouTube Insight is a
powerful tool for learning which videos work and where and then modifying your marketing
based on what you find. Buzz Targeting has the promise of providing a way for marketers to
identify and ride on the coattails of viral videos.

Expect YouTube to improve the depth of information you can get from the tools already in
place. We think Youtube will also find ways to present the data in formats you will find
useful.

Expect still more to come. We think Google will develop some version of collaborative
filtering to suggest to users what other videos they may want to watch. That would give




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users another way to find the videos they want. It would also give advertisers another
opportunity to be found.

YouTube will certainly experiment with different ad units until it discovers an effective mix.
So expect the offerings to change for a year or so until this happens.

This all means that YouTube's advertising options will get more sophisticated. When you
combine that with an increasing audience size in most age groups, you can expect YouTube
advertising to increase in cost as well as sophistication.




The Youtube Partner Program

If you have created your own original content Youtube wants you to make money with it.
Youtube describe their Partner Program as follows:
"Our Partner Program is a revenue-sharing program that allows creators and producers of
original content to earn money from their videos on YouTube. You can earn revenue from
relevant advertisements that run against your videos using Google's proprietary
technology."

The most important thing about Partner Program videos for determining what YouTubers
like is that the people and companies that produce them have experience producing videos
for YouTube and have produced a lot of them.

Watching the Most Viewed videos will give you a good sense of what works on YouTube
right now. It will make it easier to design videos that will work with your market. When we
surveyed YouTube users, we discovered that they have some very clear preferences in
subject matter. The following is the list of the top ten favored categories, based on the
number of users who found the type "very appealing".




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Conclusion

Some of the most exciting times in life are when you're involved in something new. Some of
the most exciting times for a marketer are when you have the opportunity to move ahead of
the competition. We've seen that sort of excitement in our clients when they begin the
adventure of marketing using YouTube. That's why we conducted the research in our study.
It's why we wrote this User's Guide to help you use the research results to seize the
opportunities that YouTube offers.

YouTube was created with the idea of being a site where people could share videos. Video is
still at the core of what happens on the site. Almost all interaction and almost all the
marketing that happens there involve video as a key component.

As an experienced marketer, you know the power of video. Video can deliver complex
messages. Video can educate. Video can persuade. YouTube offers you an opportunity to
use the power of video in new and effective ways.


YouTube is a Practical Tool that You can Use Now

If you market to young men and women, YouTube is a place you need to be. Teenagers and
young adults have made YouTube the dominant player in the online video space.

Videos that they view on YouTube can drive them to your site for brand building and direct
sales. Videos that they view on YouTube give them the information and stimulus to buy your
product or service offline.

The mainline and business media have covered this story very well. Our Report and this
Guide have gone beyond that to point out that YouTube offers marketing opportunities that
go beyond teenagers and young adults.

That's why fashion brands like Victoria's Secret and Nike and tour providers like Trafalgar
Tours have YouTube channels. You'll find companies selling office supplies, computers, and
business software on YouTube. There are truck manufacturers, specialty machine shops and
financial planners. They know that there's a market on YouTube today and that there will be
a bigger one tomorrow.


YouTube is an Evolving Tool

The number of teenagers and young adults on YouTube will probably increase, but their
share of all YouTube users will decline. More and more adults are using YouTube. As that
trend continues, YouTube's demographics will more closely match the demographics of the
web and the mainstream population.

Compared with other similar innovations like the web, YouTube got off to a very fast start.
We expect the site demographics to be firmly mainstream by about 2011. That offers
marketing's early adopters three years to establish a presence on YouTube, develop their
marketing skills there, and enjoy early-mover advantage.




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Here are some ways to use that time productively.


Get to Know YouTube

It's one thing to read about YouTube, but reading is not enough. To seize the opportunities
and avoid the pitfalls YouTube offers you need to combine understanding with the kind of
instinct that comes from using YouTube yourself. Get your own YouTube account. Then
devote time every day to learning about the site. View videos. Check out the competition.
Review the channels of companies you do business with and those of companies you
respect. And remember, Youtube changes everyday. New features come and go depending
on their success. Keep up to date.

We've prepared an Appendix that offers suggestions on how to develop your personal
knowledge of YouTube. It will help you get to know YouTube quickly and effectively.


Consider Different Ways to use YouTube

There's a lot of video on YouTube and the vast majority is user-generated video; video with
low production values and minimal content. It's of interest mostly to the friends of people
who posted it or very narrow special interest groups. It‟s not relevant to most marketers
and doesn't offer good examples of what can work when marketing on YouTube.

We identify three types of video that you should consider.

   1. Entertaining videos are excellent for building awareness and recognition. They're the
      videos that will draw a person to your channel where you can offer them the
      opportunity to learn more about you and what you sell.

   2. Some videos are aimed at prospects. They show the product in action, offer
      testimonials, and demonstrate benefits. They can also offer information that
      establishes a company as an expert or enhances the brand.

   3. Other videos are developed for customers. They are mostly how-tos that use the
      power of video to demonstrate ways to use the product and which support the
      buying decision.

Some companies offer "behind the scenes" videos or "making of" videos, often about the
making of commercials. These videos appeal to those who are already your fans and help
deepen your relationship with them.

Consider going beyond these standard marketing uses of video on YouTube. Companies are
posting training videos, recruiting videos and interviews and special reports on YouTube.
These videos can often be re-purposed and used to enhance brand image.




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Tie YouTube Activity to your Marketing Plan

Despite all the hype about YouTube being different, many things are still the same. You
will still be marketing to the same demographics and segments that you've always tried to
reach. That means that you already know a lot about what works.

The people who will become customers because of your YouTube activity will buy for the
same reasons that your customers have always bought. They will use your product in the
same way. They will conduct product research in the same way and buy in the same way as
your current customers.

At a more fine-grained level, the keywords that have been successful in your web and Pay-
per-Click advertising will work on YouTube. The only difference is that YouTube calls them
"tags."

But YouTube is different in some important ways. The most important is that the core of
YouTube is video. All your marketing efforts on YouTube must be grow out of excellent
video posted on the site.

YouTube also has social networking characteristics. The video that works best on
YouTube is not full length television shows or movies. Instead it's short clips that can be
viewed quickly, rated or commented upon, and shared with friends. We expect Youtube to
enter the full length feature territory soon and attract an even larger audience.

YouTube is different because YouTube is changing and developing. We've mentioned
that demographics are changing and so is the YouTube business model. YouTube is still at
the point in its business life where it's working to find a way to turn popularity into
profitability. Expect YouTube to develop more tools to support you as a marketer. Expect
YouTube to try different ad units and partnership options.

Plan to experiment on YouTube. It's the perfect medium for you to try different kinds of
video in different settings to find what works best for you.


Getting Started

We've helped many clients seize the opportunities on YouTube. Based on that experience,
here are three pieces of advice.

           1. Set clear and measurable objectives. YouTube has some of the character
              of the direct response world. Testing to see what works and modifying your
              future efforts based on what you find can accelerate your success.

           2. Maintain a consistent brand experience. It's sometimes tempting to try
              things that are a bit "over the top" because you're working in a new medium.
              Don't succumb. Everything you do on YouTube should support your brand
              identity and the image you want to project.

           3. Brand channels are an excellent anchor for your YouTube efforts. They
              project your brand while giving you a central place for all your video and links
              to your site.



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There are immense opportunities waiting for the marketers that move quickly to establish
presence and master the arts of YouTube marketing. Many of the greatest benefits will
come to the companies who are the early movers in this exciting new marketing medium.




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                  Appendix: Getting to Know YouTube

The best business decisions usually come from a combination of careful analysis and gut
instinct. You need to have both to make wise choices about where and how to use YouTube
as part of your marketing.

Our Report and this User's Guide will help you with the analytical part. But you will also
need to become familiar with YouTube and develop a reliable "gut sense" of what will work
there.

The most effective among the first commercial web sites were developed by men and
women who had developed their gut sense for what would work for their customers on the
web. The most effective of the first television commercials were created by people who had
watched enough television to have an idea of what kinds of commercials would appeal to
their market.

If you, personally, are new to YouTube we recommend that you take some time to become
familiar with it as a user. Then you will be able to combine your analysis and research with
the instincts you've developed about your customers and about YouTube. The result should
be better marketing.



Read More about YouTube

Keep up with what's happening on YouTube. Clipping and alert services are a good way to
do that.

Google News has an excellent alert service that will let you know when new stories about
YouTube appear in the press. Pay special attention to the news stories. They'll help you
develop a sense of key issues and how YouTube adoption is playing out.

Key financial publications such as the Economist, the Financial Times and the Wall Street
Journal also have alert options. So do marketing publications like Advertising Age. Pick one
or two to stay abreast of YouTube news.


Individual Adoption Patterns

We expect that individuals will adopt YouTube in approximately the way they became users
of the Web or television. Most will move through three phases.

When television was new, those who owned sets would invite their friends over to "watch
TV." No mention was made of what programs might be on. The novelty of TV was enough.

The same thing was true in the early days of the Web. New users would spend their first few
months just surfing. They were looking for new things.

After three to six months, they began to discover useful web sites and started to visit those
sites regularly. They began hunting for sites that answered questions and solved problems
for them. By the end of another three months or so, their web use habits had jelled.



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If you make a conscious effort to get familiar with YouTube familiarity will come faster. The
time it will take you to develop a good gut sense of how you can improve your marketing
using YouTube should be around three months.



The Novelty Phase

When you start out, YouTube will be as novel for you as it is for any new user. You'll do best
in this phase if you follow your interests and explore.

Set aside a minimum of fifteen minutes a day to explore YouTube. Some days you'll have to
push yourself to stay on the site and explore. On other days, the time will fly by.

Find people you know who are YouTube users and spend time with them when they use the
site. They can be your own personal help desk and get you through any operational
problems.

Find people you know professionally who are YouTube users. Find out what they do on the
site. They will help you move quickly from random exploring to a more mature and helpful
form.

Even with extra effort on your part, this phase will probably take a month or more. It's one
of those things that you can't rush.

You will know that you're moving into the next phase when two things start to happen. You
will find yourself doing the same basic things on every visit. And, you will start to approach
your sessions with ideas about what you want to investigate.


The Mature Exploration Phase

In this phase you should be actively tying your research on YouTube to your business
purpose. We suggest that you make lists of things to find out more about.

Check out the competition. Make notes about which of your key competitors are on
YoutTube and what they're doing there.

Make lists of keywords that you believe customers will use to look for you. Include the key
words and phrases from your web site and the ones you buy in Pay-Per-Click advertising.

Take special note of any supporters or detractors that are already on YouTube. Look for
users with names similar to your corporate name.

Talk with the people who deal with your customers directly. Look at the research you have
on file. There are some specific things you can look for.

Are there commercials of yours that people seem to like and remember? They can form the
core of your YouTube videos. Are there any videos that YouTube users are already posting
on the site?




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Are there information needs that your prospects or customers have that would be well met
with video? QuickBooks has videos for both groups available on YouTube.

Prospects can view videos which show them the key benefits of the QuickBooks product.
Customers can view instructional video about basic tasks a new customer will want to
perform, like issuing an invoice.

This phase can vary a lot in length depending on your time and attention to learning
YouTube and depending on your specific market. You'll know you're moving into the next
phase when your questions shift from "what" question about how things work or who's on
YouTube to "how" questions about how to use YouTube to improve your marketing.


Strategy Phase

Before you move on to integrating YouTube into your marketing strategy, take some time to
review what you've learned and what questions you still need answered. Here are three
things to consider.

Make a list of any recurring things you want to do on YouTube. You may want to check out
competitors every week or test keywords monthly.

Take time to write down the most important things you've learned while getting acquainted
with YouTube. Writing them down forces you to think about them in detail and develop a
way to present your precise meaning.

List the questions you think need to be answered. They may be questions about customer
behavior, budgets, video inventory or competitor behavior.




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                 Appendix: Creating Video for YouTube

Video is at the core of YouTube. Developing and posting great video content should also be
at the core of your YouTube strategy. But before you start collecting or creating clips there
are important marketing things to consider.


What's Your Marketing Goal

The saying is that "form follows function". That's true when you're considering what clips to
put on YouTube. Start with the function. What do you want to do?

Do you want to attract people to your channel or web site? If you do, then consider
the kind of videos that people will click to see and the kind that friends will recommend to
each other.

Videos with high entertainment value are the most likely to be recommended and searched
for. If you want to draw people to your channel, the video that does the trick may not be
one that answers a question or solves a problem. It may be one that makes people laugh.

The QuickBooks channel has lots of helpful video for both prospects and customers. But
there's also a video designed to entertain and engage. It's a Jingle Generator. The idea is
that the Jingle Generator will draw people to the QuickBooks channel where they will find
other, less entertaining, but more helpful videos.

Do you want your video to help sell your product or service? If the goal is sales there
are two basic kinds of video that seem to work.

Some videos sell by letting viewers learn about the project. They may see a demo of the
product in action, or they may see a sales pitch.

Other videos sell by building credibility. They sell through testimonials. Testimonials can be
from users who are much like the viewer or from celebrities or experts.

Do you want to improve the experience of buyers or users? Videos that demonstrate
how to use the product or get more out of the product or service work here.

A type of video that seems to straddle the fence between sales and support is the "insider"
video. IBM and Nike do a wonderful job with these, giving viewers access to "behind the
scenes" and "making of" video as well as video from conferences and other presentations
and interviews.

There are other options as well. Tesco uses YouTube videos as recruiting aids.


Video Basics

However you produce your video, the video becomes part of the branding experience. Strive
for some consistency in your videos.




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Keep the same overall video quality. People should understand that all your material
belongs together.

Make sure you provide identification so people can connect to you. Consider including your
web address in the video itself. That way, if your video is seen on a third party site, viewers
will still know who you are and how to find out more about you.

Go for lengths and format that work on YouTube. Entertainment videos rarely run more
than three minutes. Other videos can vary in length depending on the content. Whatever
the length, make sure that the pace encourages continued watching.

Since the frame in the exact center of your video is used by YouTube to create the
thumbnail, you may want to edit length to get a thumbnail that represents the video and
draws attention.

Pay attention to the title and tags for your video. Those are the attributes that most affect
whether you get found when YouTube users use the search feature.


Creating Video

Videos on YouTube vary wildly in quality. You want to pick the level that best helps achieve
your marketing objectives.

User-generated video gets most of the press in articles about YouTube, but by and large
it is the province of friends sharing video with each other and not the product of
professional marketers. There have been some exceptions.

Some companies have gone for a "user-generated" quality because they think that it is
more believable than professionally-produced video. Some agencies have tried to create a
"user-generated" look and combined it with a non-commercial user name in the hopes that
the video will go viral.

The biggest exception is the use of user-generated video as part of a contest. We'll have
more to say about this in the appendix on "Contests."

Professional production comes in two forms. Smaller houses are often general business
video producers which may make them better for news or documentary look. They may also
have a specialty in shooting videos with computer screen shots or captures from video
games.

We're starting to see video producers who claim to specialize in video for YouTube or social
networking sites. So far we're seeing this mostly for how-to videos, but it's possible that
these houses could become the preferred option for smaller businesses.

Cable television broadcasters in the US often double as production studios and offer their
production services free to advertisers. Depending on the quality of the ad, this can be a
good option for small businesses. For larger businesses, though, agency productions are
usually the best option.




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Agency productions are usually the most sophisticated since they're used to creating
video commercials as well as other presentation videos for clients. Agencies usually have
the relationships to knowledgably outsource parts of the project.

Remember that, unlike television, once you've posted a video to YouTube, it has the
potential to live forever one the web. Make sure that the quality of your video reflects the
quality of your brand.


Mining Your Video Archive

Many companies and agencies have an archive of video. There are old commercials,
promotional videos created for trade shows and product launches, video news releases,
training video, orientation video and video captured at the coverage of company events.
Some of that could be perfect for YouTube.

It's easy to start throwing all that video up on YouTube, but it's better marketing to make
sure you're posting clips that fit your standards and help achieve your objectives.

Unless a clip has significant historical value, don't post any clip that doesn't meet your
current production standards or match your brand's graphic look. When Neiman Marcus
posted video on YouTube as part of its 100th anniversary, there were dated clips used to
illustrate some of the store's history.

Consider using some clips for a different purpose. Training video prepared for employees
might prove helpful to customers. "News" footage can be edited into a montage about
company history, traditions or key positions.

Look at event footage, old commercials and outtakes to determine if they can provide you
with some "behind the scenes" or "making of" videos. Recent interviews with key company
figures can be "insider" material.

Assume that you will need to edit every video. Edit for length, tempo, and thumbnail
positioning. Decide whether you should include web site or other information in the video
itself.

Whatever source you use for video, consider the different ways that the video might be
used with a little editing.




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                        Appendix: YouTube Contests

If there's anything close to a surefire strategy for marketers on YouTube, it's probably
holding a contest. If you've got a brand channel, it's definitely something you should
consider. Here's why.

Contests build brand awareness. When Heinz ran its contest to create a ketchup
commercial, there were more than four million entries. When YouTube users start uploading
contest videos, other viewers check them out.

Contests build involvement. We can measure lots of things in advertising. We can't measure
the affect of millions of people thinking about the characteristics of a product and trying to
figure out the best way to portray that product.

Contests may or may not produce great advertising. The Heinz contest produced some
interesting ads, but nothing that could change the world. If you're looking for a
breakthrough ad, a YouTube contest may not be best way to get it.

Contests can give you insight into how people view your product. That's knowledge you can
use in future marketing.

Whatever the mix of benefits, many large companies have conducted contests as part of the
way they use YouTube for marketing. Here are examples.

Intuit has run two popular contests connected to its TurboTax product. There was TurboRap
which required viewers to create a rap video extolling the virtues of TurboTax. And there
was the Tax Comedy contest that had comedians competing with routines that involved
taxes and TurboTax.

K-Mart has run a contest where teenagers create commercials about how K-Mart works with
their back-to-school style and personality.

Southwest Airlines held a contest connected to its "Wanna Get Away" campaign. The
campaign ads showed, humorously, reasons why a person might want to get away from
their work or life situation and how Southwest Airlines, and its low fares, could help.

The contest asked YouTube viewers to create similar commercials. The winner got his or her
commercial turned into a real commercial that aired on broadcast TV, plus a real getaway
vacation for four.

The news magazine US News and World Report does an annual survey and ranking of US
colleges. It ran a YouTube contest where viewers were asked to created videos with the
title, "Why My School Rocks". The top prize was a free spring break vacation.

Wal-Mart worked to underline its position as the low-price US retailer by conducting a
contest that asks mothers to submit money-saving ideas.

The 3M Corporation, maker of Post-It Notes, ran a contest, called "One Million Uses and
Counting" on YouTube. Viewers uploaded videos about different ways they use the
ubiquitous little yellow notes.




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YouTube Makes it Easy

YouTube knows that contests really work for marketers on YouTube. They've made a special
effort to make this easy to do and more likely to be successful than if you did it yourself. All
you need is a channel on YouTube to get started.

YouTube has integrated the contest package into the brand channel. That means cross-
promotion.

YouTube has also created a four-phase model for contests. There's Announcement, where
you let people know that the contest will be held. There's Submission where people upload
their entries. There's View and Vote where members of the YouTube community vote on the
submissions. And, finally, there's Results where you announce the winner.

The site also gives you other options to make this powerful marketing tool as powerful as
possible. You can syndicate the contest so it appears on your own or third party web sites.
There are also email notification and subscription options and ways to purchase advertising
to promote the contest.




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                     YouTube Tips, Tricks and Traps

YouTube is a new and exciting medium and we've covered a lot of material about it in the
Report and in this User's Guide. This appendix includes material that didn't fit easily into
any section of the report and that we think will help you use YouTube more successfully and
profitably. We've divided them into Tips, Tricks and Traps.




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Tips


Tips are ideas for things to do that will improve your
results. They're things to consider or to modify.

Mine the video you already have. Just be sure to edit
your clips for a length and tempo so they fit YouTube.

The keywords that you use on the web and in your PPC
advertising will make effective tags, but the video title is
equally important if you want to be found in search.

Recruiting is one of the biggest challenges for companies today. YouTube
videos give you a way to present your company to people around the world.

Make sure your channel has a name that reflects what people will find when
they go there. Usually that will be the name of your brand.

Different channels can represent different brands or markets or languages.

If you're a local business, make sure your videos have tags that include the
name of your community.

If your company or brand name is often misspelled, make sure your tags
include the misspellings.

Embed your YouTube videos in your web site. Then when people view them you
can surround them with other marketing messages and links.

Put links to your videos in your email signature file.

Develop the habit of creating video of company events and media appearances.
Use the video for news releases and post to YouTube.

Shoot video of the process of making commercials and covering events. Your
fans love "behind the scenes" videos.

Announce new videos posted to YouTube in your newsletters. Link directly from
your e-newsletter to the video or to the video embedded in your site.

Shoot videos of your salespeople demonstrating your product or applications at
a client location. The video can provide an introduction for your salespeople and
a client reference.

Film trailers and music videos are some of the most-viewed videos on YouTube.
Consider ad placements around appropriate ones.




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Tricks

Tricks are small things you can do to make your YouTube marketing more
effective.

Tweak the length of the video so that an image that represents the content or
that draws more views is the thumbnail.

Once you've got videos for YouTube, you can use them on other sites, too.
TubeMogul (www.tubemogul.com) is one service that can upload your video
to multiple video sharing sites and delivers excellent viewing statistics.

Split runs work for the direct response marketers and they can work for you.
Upload the same video with different titles or different videos with the same
title and see which ones do best.

Shoot customers giving testimonials. Then give those customers an edited copy of the video
with the suggestion that they can post it on YouTube or their own site. Some of them will do
so.

Find creators of "most viewed" videos who post material that's appropriate and reaches
your market. If you can hire them to make a video for you, you will almost automatically
reach the audience they've developed.




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Traps

                          Traps are things that you might be tempted to do that we think
                          are a bad idea. Other traps are things that the media have
                          written about that we think aren't supported by our user research
                          or by our research into what marketers are actually doing on
                          YouTube today.

                       Just because it's easy to do, doesn't mean it's the right thing to do.
                    Check everything you intend to post on YouTube to make sure it
                    represents your brand and moves your mission forward.

          When you post a video to YouTube, consider it a permanent posting. If someone
          copies your video, it can live forever on the web whether that's what you want or
          not.

Don't run a "make a commercial" contest unless you're ready for some clips that make you
uncomfortable or angry.

The media like to focus on YouTube as it is today with the demographic highly skewed to
the young. Don't be drawn in. There are already plenty of adults and businesses on YouTube
with more on the way.

Just because you have video doesn't mean it's good or meaningful to the people in your
market. Either modify it so it is, or don't use it.


What's above are just a few of the hundreds of ideas we've picked up from our research and
work with clients. They're just the tip of the iceberg. We'd love to hear about your
experience and any tips, tricks or traps you've discovered or created.




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                                 Quick Start Guide

Growing up, we learned that we should read books and reports all the way through. But
that's not always the best thing to do.

Some people just aren't comfortable doing that. They work better when they start trying
things out early.

Some people are too experienced for that. They do better if they can take the expertise
they've already developed and start adapting strategies for the new challenge.

Some people just don't like to read reports and guides. They want to get started trying
things so they can see what works for them.

If you're any of those people, this section is for you. Here's our suggestion about how to
proceed.

Start by digging in to the Appendix on "Getting to Know YouTube." The most important
thing you can do is get on the site and start exploring and learning.

Once you've started getting to know YouTube, read the chapter titled "Marketing Using
YouTube."

Then read any chapters that address your specific marketing challenge.




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posted:6/3/2012
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Description: YouTube for Business