YouTube Marketing 101:

YouTube is the most popular video uploading website, according to Neilsen/Net Ratings, with 19.6 million unique viewers as of June ‘06. This start up company out of California is 1 ½ years old and now just only beginning to uncover a strategy to produce profits. John Boudreau, of Mercury News recently reported on the unveiling of YouTube’s money making strategies.

There are 2.4 billion videos viewed on YouTube each month, which helps this website become recognized as one of the top viral marketing hubs. Popularity was quick but can YouTube follow with making a profit off of millions of consumers. The online social networking phenomenon has created many chances for companies like YouTube. However, the target demographics for sites like these have tastes that are constantly changing. To successfully market to these consumers YouTube will have to, “find the right balance between the free expression of users, prevention of the illegal proliferation of copyrighted content and appeal to advertisers -- while not alienating users.”

Recently, YouTube has tested some marketing tactics with Yahoo! and Google text-based ads as well as a banner campaign for Disney’s “Pirates of the Caribbean: Dead Man’s Chest.” Julie Supan, YouTube's senior director of marketing commented, “We want to get it right. It’s not just a matter of whether or not the advertiser will find value. It’s also whether the users find value in it.”

The marketing reach, due to YouTube’s success, is massive. If they are planning on staying ahead of all the other video uploading websites, they have to plan their moves accordingly. There is obvious speculation of correct placement of ads throughout the site because of the wide range of video subject matter. The marketing can not be unpredictable, the planning must be extensive.

Since YouTube is privately owned, they choose not to disclose the cost of operating the website. Boudreau reported that industry insiders claim it is at least $300,000 and $400,000 per month to run a website with this kind of bandwidth. YouTube is obviously feeling the pressure to make a profit but they have to be easily fueled with the wild popularity of their company. When YouTube finds a good strategy for marketing to their consumers there is no doubt that many companies will want the chance to be included for the opportunity of reaching millions of customers a day.

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