CASE STUDY:

Google and
YouTube
Together:
(Chapter 10: Online Content and
Media)
GROUP MEMBERS:
Ahmad Mehdi
Hussain Aamir
Azlan Ahsen
Kainat Zubair
Fouad Ashraf
Nadiya Abbas

THE BEGINNING OF GOOGLE =>

YOUTUBE

YouTube launched on Valentines Day 2005; website didnt officially hit the masses
with its first video upload until April 23 of that year

Google purchased it a year and a half later (November 2006) for $1.65 billion

Googles stock price hit $500 months later and a little over $700 in November of the
following year

The 2008 recession hit the YouTube / Google collaboration hard resulting in a
rumored $250 million loss for that fiscal year

CASE: Google and YouTube Together: Pass the Popcorn While This
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WAS YOUTUBE A WORTHWHILE

INVESTMENT?

YouTubes tendency to keep secret their total amount of videos makes skeptics
wonder if the total cost of site maintenance makes profits impossible

Estimates show it can be anywhere from 84 to 142 million videos, exceeding 1

petabyte of hard drive space

It draws over 120 million visitors monthly, but the average stay is about 5 minutes
as opposed to sites like Yahoo! where its 150 million visitors each stay about a
hour or so

CASE: Google and YouTube Together: Pass the Popcorn While This
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HOW GOOGLE JUSTIFIES YOUTUBE

PURCHASE

Google plans to turn YouTube, the Webs largest repository of video, into the
largest advertising platform in history

The increase of quality content so its on par with the amount of user-created
content will increase profit after advertising next to popular videos begins to
make sense for sponsors

After ways are found to collaborate with media conglomerates so permission to

upload quality content is obstacle-free, more viewers gradually flock over

CASE: Google and YouTube Together: Pass the Popcorn While This
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WAYS YOUTUBE / GOOGLE ARE WORKING

WITH COPYRIGHT OWNERS

They restrict advertising. They only advertise on those pages that copyright
owners have given permission.

Google developed a software called YouTube Video Identification. It allows

copyright owners to scan the YouTube database for their own copyrighted
material.

They are changing their approach to a "Quality Video Content". High-Quality

content owners, like CBS, HBO, ESPN, etc., are allowed to establish their own
"exclusive channel" on YouTube.

YouTube cut deals with companies like Sony, the BBC, Starz, etc., to provide
full-length movies and TV shows for free

CASE: Google and YouTube Together: Pass the Popcorn While This
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YOUTUBE / GOOGLE NOW!

They can not be the Internet's single source for all world's video.

They need lots of powerful players in order to make a profit and

survive.

YouTube has developed a "sponsored videos" program. They select

amateur videos and offer advertisers text ads to be displayed on the
lower portion of the video screen.

The advertisers bid for keywords and Google uses search tools to
match the keywords with the proper videos.

CASE: Google and YouTube Together: Pass the Popcorn While This
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PROBLEMS WITH THE NEW ADVERTISING

The connection between the video and the ad may not be clear.

Chances that the advertisers' ads will show up on an embarrassing video.

YouTube users still expect the videos to be free and without ads. Therefore
their response rate to the ads are very low.

The ads are killing YouTube's audience.

CASE: Google and YouTube Together: Pass the Popcorn While This
Ad Plays

QUESTIONS??
?
CASE: Google and YouTube Together: Pass the Popcorn While This
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Question??
In your view and experience on being a
YouTube viewer (casual or frequent), will the
viewing audience of YouTube accept

advertising while watching the available

videos. Also name one website that you think
has lost its initial charm or lure because of a
commercialization focus.

Answer
Being a frequent user of YouTube, I believe
that adding advertisements while watching
videos will not have much of an impact on the

viewing audience.

Answer: Contin.
YouTube is also very aware of its current
market position. It holds approximately 40%
of the online video market share in the US

and has 12.8 billion videos.

Answer: Contin.
The website that lost its initial charm is the
one for Sydney Morning Herald. I was a
frequent user of it but since it started

showing flashy ads on the top of the web

page where the ads floated on actual
content, I stopped using it.

Question 2
What responsibility does Youtube have in removing

copyrighted material from its site? Youtube claims it is

in compliance with the Digital Millennium Copyright
Act, which requires owners of content to notify
Websites when their copyrights are infringed. Why is
this a good solution for Youtube but a poor solution for
copyright owners?

 Youtubes responsibility lies in removing material

from its website which has been identified as being
in breach of copyright by the copyright holders.
This is in accordance with the Digital Millennium
Copyright Act.
This responsibility was recently upheld in a supreme
court case in the US.
Viacom, a media conglomerate, had been trying to
sue Youtube, and its parent company Google, for
massive copyright infringement.

 In particular, he noted that a list of 100,000

videos reported by Viacom as infringing on their
copyright were mostly removed by Youtube
within 24 hours.
The Digital Millennium Copyright Act requires
the owners of content to notify websites when
their copyrights are infringed.
Copyright holders will see this as a bad thing for
them as it will take more of their time and
resources to ensure that their copyrights are not
being infringed.

 About 24 hours of video are uploaded to Youtube every

minute.
It would be almost impossible to screen each of these videos
for copyright violations let alone actually keep track of what
is copyright material and what isnt.
It has provided a number of tools to help copyright holders
identify if their material is being used on the site.

 In addition to providing the facility to

manually flag that a video is infringing on
copyright, Youtube has introduced its Content

Id system.
This system is able to identify infringing
videos by using the audio or video
fingerprint that is identified by the
copyrighted material.

Question??
3. Assume you were a manufacturer of
sporting goods, and you wanted to use
YouTube videos as a marketing tool to

establish your brand. What concerns would

you have about using YouTube?

Answer:
YouTube has a vast audience, which can be a

very powerful marketing tool in itself.

However, this audience cannot be underestimated as it can quite easily back fire on the
advertiser.
Return on Investment, Copyright issues and
Audience Attitudes

Return On Investment
The return on investment for advertising on
YouTube may not be as high as advertising
through other means.
There is also no guarantee that users will not

just skip your advertisements as soon as they

appear.

Copyright

Issues

Another issue would be in regards to

copyright. By some estimates, 25% of the
videos on YouTube contain copyrighted

material and make up possibly more than half

of the total views.

Audience Attitudes
A major factor would be the reception of the
advertisements by the audience. This is
something that is hard to predict.

Example Of A Successful Ad
Campaign
In some cases, you can have incredibly
successful advertising campaigns, such as the
recent Old Spice advertisements and

the follow-up videos that have been posted

on YouTube.

Example Of An Ad Campaign That

Failed
On the other hand, things can go very wrong.
An example would be ESPNs attempt to
advertise on the YouTube homepage.

 4. Google claims that users are 10 times more

likely to click on its Flash animation on the

bottom of the video screen than a standard
banner ad. Do you believe this response rate is
reasonable, and do you believe it could be
sustained over the long term (5+ years).
Answer: Response rates to online advertisements,

whether they are banners or email campaigns have

always been relatively low compared to other forms
of media

 The increased rate is then very reasonable in this

scenario. However, this increased rate will not be
sustained over the long term.
Click through rates have been in decline for years

across all forms of online advertising and portals

such as Yahoo and AOL

As online advertising becomes even more

widespread, users are starting to treat the online

advertisements the same way they would treat any
other unsolicited advertisement..

 Google as well as other companies that have a

stake in online advertising are spending

billions of dollars in acquiring new advertising
networks and developing systems to help
deliver advertisements in a much more
effective manner

 Effectiveness in this case would be measured

by delivering relevant advertisements to users

who are most likely to actually click on them.
This is proof that the advertising companies
themselves see that current response rates are
unsustainable without any innovation on their
part.

If you have any

question, please keep

it with yourself.
#KThnxBye.