“WAC on YOUTUBE FOR BRAND case study”

Team No- 10
RITAM CHAKRABORTY-19021141086
TWINKLE PANDITA -19021141128
ANKITA AGARWAL -19021141020
HARSHIT GONDOLE -19021141046

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PAGE NO. INDEX

3. INTRODUCTION,
ABOUT YOUTUBE,
DESCRIPTION OF THE CASE

4. TYPES OF YOUTUBE CHANNELS

5. ADVERTISING ON YOUTUBE

6. NUMBER OF YOUTUBE VIDEOS PRODUCED BY BRAND

NUMBER OF YOUTUBE VIDEOS PRODUCES BY
INDUSTRY

7. RECOMMENDATIONS

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 1. INTRODUCTION
YouTube is an online video repository responsible for 20% of all internet traffic in North
America, Europe, and Latin America. It is a Google owned site which attracted 1 billion
monthly unique users. At the end of 2011, YouTube redesigned its site in the form of
television style channels. It has seen major changes over the years whether it is
regarding the user-friendly interface or becoming one’s source of income. Now it has
become a platform for brands to reach the right audience through thousands of
channels which attracts millions of views in a matter of few days. Being one of the
world’s major video platform, its viewership is increasing rapidly as what might not be
available on TV, sometimes, can be viewed on YouTube. The right content on YouTube
is helping the brands reach the target market by showing ads as per the needs of the
customer and what the person is watching over time. This case discusses how YouTube
has attracted brands and various brands shifting from the traditional Television
advertising to online based advertising and customizing the same as per the viewership.
This case also includes why and how brands should take decisions regarding spending
their larger proportion of money from the TV ads to online platforms like YouTube.

2. ABOUT YOUTUBE
For most brands, YouTube is at the heart of their video content strategy. With 2 billion views
per day and 3.7 billion searches per month. YouTube is the dominant video sharing and
distribution site on the web and the best option for disseminating information, building brand
awareness, and increasing traffic to your site.

3. DESCRIPTION OF THE CASE

3.1 HOW TELEVISION ADVERTISING WORKED

The five primary national television networks in U.S. were CBS, NBC, FOX, ABC and CW. These
generated revenues by selling airtime to advertisers which were usually of 15-60 seconds,
called spots. By 2014. Airtime during the network prime-time TV slots (weekdays from 8pm to
11pm) which costed around half a million dollars for a 30-second spot. The revenue generated
during prime time was $34 as compared to the daytime shows which generated a revenue of $9
only.
The audience size was measured by sampling a few chosen household habits by using their
personal diaries or set-up boxes connected to their TVs. Viewership was reported by ratings or
by audience share. Each percentage point of turned-in viewers was called a ratings point.

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Audience share was the percentage of viewers among the TVs that were turned on at the point.
Advertisers were interested in the reach and frequency of their commercials. Reach counted
how many potential customers were tuned in to a show during any five-minute interval.4-17%
of the viewership generally declined during commercial breaks while the percentage of ads that
were not fully viewed by the exposed audience ranged between 48% and 80% in the last four
years.
Advertisers could target their messages based on location, age , gender, and income level of
viewers. Cable television provided also provided targeted ads based on interest, such as the
History Channel and the Food Network. On YouTube, the process of users loggin in allowed
advertisers to target viewers whereas TV could only access audience profiles via third-party
surveys.
An ad’s effectiveness was depended on what sort of impact the ad was intended to have. The
effectiveness of the brand image was accessed by recall, recognition, and attitude surveys while
direct response was evaluated based on sales or other behavioral responses. It was quite
challenging because the customers were exposed to multiple marketing messages and tactics at
the same time.

3.2 TYPES OF YOUTUBE CHANNELS

 Standard user channels: Any individual or company can register free of charge in which
the users were able to upload videos, make playlists of favorite videos, mark videos for
later viewing, share them on social media sites, and subscribe to YouTube channels.
 Brand channels: These were similar to individual user channels but offered only to
brands for the purpose of corporate branding. These were used by brands to house
media assets, such as tutorials, commercials, behind-the-scenes videos.
 Custom brand channels: These websites cost a minimum of $200,000 per year. Of this
amount, brands were required to spend at least half on advertising on YouTube and rest
on a combination of display and search ads on Google sites. In this, the companies
gained access to customized features, such as a unique channel layout, and add-on-
features, such as gadgets as well as to upload live streaming of video content.

3.3 ADVERTISING ON YOUTUBE

YouTube came up with a different strategy for advertising. Advertising was available in both
video and non -video formats

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The non-video formats consist of display ads, alsoknown as banner adswhich appeared to the
right of the selected video or directly above it. These ads were bought using Google Adwords, a
keyword-based auction platform.
There were two types of video ad formats-non-skippable and skippable.
Non skippable ads were available before, during or after the video content and purchased
based on CPM basis. This basically mimicked television advertising style with the exception that
they were interactive. User can click on the ad which will take it to a different video or to a
webpage of the product/service.
Skippable ads were also known as “True view” as they allowed the viewer to choose which ads
they wanted to view or skip. These ads start stated automatically before the desired YouTube
content played. after 5 seconds the viewer had the option of the of watching the rest of the ad
or skipping it.
The rates charged for completed views of the true videoads, known as cost per thousand
views(CPV) were reported to be $10and $500. If we talk about the CPMYouTube had fallen by
one third from June 2012 to April 2013. The reason for the decline on CPMs was an excess of
user of user-generated content that that suddenly became available for advertisement
placement.so to overcome this, YouTube decided to reduce the minimum price charged for the
sponsorship of the most popular original content channels to $1million. Moreover, the package
of channels would not be exclusive to an advertiser.
In 2013, google reached 88% of the American Internet video audience and played a major role
in the digital digital video advertising plans of many of the world”s top brands as given the
exhibit below:-

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NUMBER OF YOUTUBE VIDEOS PRODUCED BY BRAND:

30000

25000

20000

15000

10000
Series 1
5000

NUMBER OF YOUTUBE VIDEOS PRODUCES BY INDUSTRY:

80000
70000
60000
50000
40000
30000
20000
10000 Series 1
0

CHANNEL INSPECTION TO AUGUST 2013

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So different brands used youtube as a hub for all their video content which includes two types
of brand related content which were:-
Video content-
This was created by brands itself, such as short films,clips featuring celebrity
spokespeople,contests,tutorials and comercials.
The second type was video that users created with or without the involvement or approval of
the brand. So these brands videos were viewed on average only 37000 times. Some of the
brands like Red bull, CoverGirl, L’Oreal and Lego were among the top brands on YouTube
which were able to generate more subscribers and passed the threshold of 1 million views with
differentvedios by the end of 2013.

4. RECOMMENDATIONS
We would certainly look into YouTube as a source of advertising or as an alternative to the
traditional TV advertising. We would recommend our brand to utilize the standard user
channels and the brand channels and would only recommend the custom brand channels if it
was economical for the company. YouTube offers display ads in the forms of banner ads and
transparent overlay ads, and we would recommend our brand utilize these as well. A brand can
take advantage of video advertising via non-skippable and skippable videos that automatically
play before the user’s selected video.

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