Overview

Whether you’re trying to start a video blog, upload a video of your trip to the zoo, find a specific song to show your friends, or find instructions on how to build your own cabinet, YouTube is a website of limitless possibilities where users can upload videos and share them with the rest of the world.



The Platform in Brief

Founded in February 2005, YouTube is a video-sharing service based in San Bruno, California. The site was created by three former PayPal employees, and in November 2006 was purchased by Google for $1.65 billion (Dickey, 2013). YouTube is best known for being a place for users to upload their own content such as music videos, educational videos, original short films, and even video blogs. With over a billion unique visitors every month, this site has grown to be one of the most popular in the world, with over 100 hours of video uploaded every minute according to their website. In January 2014, YouTube was rated the number 1 entertainment website visited according to Nielsen (2014), and reached more adults aged 18-34 in the United States than any cable network.

YouTube’s primary source of income comes from ads both on banners around the site as well as video ads, which play before a user is able to view the video they are looking for. In April of 2012, YouTube launched its revenue-sharing program, which allowed users to easily pair sponsored videos from companies together with their own content. Users would get about half of the revenue generated, which can grow quickly depending on the size of the audience the user has gained (Hamiltion, 2013).



The Platform in Operation

Many companies now use YouTube to promote their products and business in many different ways. Some companies, such as Home Depot and Zappos, use YouTube to showcase their products to customers looking to buy, or videos showing projects that make use of their various goods and services (Male, 2010). Best Buy uses multiple “channels” to upload videos showcasing different areas of their business such as Geek Squad, Napster music, and their Best Buy @15 channel aimed at younger audiences (Chaney, 2011). Some companies, such as Old Spice, attempt to employ interactivity with their community, such is the case in their Old Spice Man videos, which encourages YouTube users to comment on the videos and have what they wrote read in later installments of the series of videos (Frankenberry, n.d.).



The Platform’s Pros and Cons

There are many pros to using YouTube, both for businesses and regular users. The first is that the site is completely free to use. Because YouTube receives revenue from ads throughout the site, users are able to use the service and upload content free of charge, and create “channels” which they can customize and upload all of their videos to one place, arranging them into playlists, and interact with subscribers to their channel. Businesses can also take advantage of YouTube’s advertising services to promote their company and products, which can be shown in short clips played before users may view the video they have navigated to (Connor, n.d.).

There are also some cons associated with YouTube, though some things are more of a nuisance, and would not actually drive away users of the site. While the site being free is a pro, it is also a con because this means that YouTube still has control over the medium in which your content is posted. If your video is judged to be inappropriate, due to reasons such as adult content or copyright infringement, then the content may be taken down, and your account deactivated (Roberts, 2010). In addition to this, YouTube may use all or part of your videos for their own purposes, as laid down in their Terms of Service. Businesses may also run into trouble due to YouTube’s Related Videos function, which recommends videos similar to the one a user is watching. This can become a problem if the suggested videos draw more attention then the original video a user views or if the video suggested actually draw attention to a company’s competitor.



Analysis

I believe YouTube is an incredible platform for both businesses and regular users alike. The site is absolutely free to use, which is why millions of people around the world continue to sign up every single day and continue to upload vast amounts of video. Many users have been able to become very famous through the website such as comedian Bo Burnham, who uploaded comedic songs he wrote and was eventually signed to Comedy Central Records before his 18th birthday (Johnston, 2014), or Psy, a Korean pop-star who’s video “Gangnam Style” has been viewed over 2 billion times (Rosenblatt, 2013). Regular users also have the opportunity to make money through the YouTube Partner Program, started in 2007, which gives six figure salaries to thousands of channels according to the company.

Businesses also have many opportunities to use YouTube to generate revenue or even create new customers. Paying for advertising before YouTube videos is an excellent way to guarantee that a company can gain exposure to thousands, or even millions, of users a day. Many users may be led to the company’s website, or be inspired to buy products from that company due to these ads building top of mind brand awareness. Companies may also upload content in an effort to interact with their customers through educational videos, do-it-yourself project ideas, contests and giveaways, or messages from company officials. There is a large number of options available to businesses to use YouTube to their advantage.

YouTube is a site I believe will last for a very long time. As long as there are users who wish to upload content for their friends or subscribers to see, then YouTube will continue to exist. Every viral video starts somewhere, and every video blogger needs a medium for their content. I believe YouTube is currently, and will continue to be, a central hub for these and many more things for many years to come.



References

(n.d.). Retrieved January 29, 2015, from http://www.youtube.com/

Chaney, P. (2011, June 6). 12 Popular Retail Companies on YouTube. Retrieved January 29, 2015, from http://www.practicalecommerce.com/articles/2829-12-Popular-Retail-Companies-on-YouTube

Connor, S. (n.d.). 10 Pros and Cons of Using YouTube. Retrieved February 1, 2015, from http://www.thinkvaulter.com/_blog/thinkVAULT_Web_Business_Tips_for_Savvy_Business_Owners/post/10_Pros_and_Cons_of_Using_YouTube/

Dickey, M. (2013, February 15). The 22 Key Turning Points In The History Of YouTube. Retrieved January 29, 2015, from http://www.businessinsider.com/key-turning-points-history-of-youtube-2013-2?op=1

Four-Fifths of Americans Logged Online for Entertainment to Beat the Winter Blues . (2014, March 7). Retrieved January 29, 2015, from http://www.nielsen.com/us/en/insights/news/2014/snow-biz-four-fifths-of-americans-logged-online-for-entertainment-to-beat-the-winter-blues.html

Frankenberry, A. (n.d.) Our 10 Favorite YouTube Marketing Campaigns. (n.d.). Retrieved February 3, 2015, from http://www.contentfac.com/our-10-favorite-youtube-marketing-campaigns/

Hamilton, A. (2013, April 22). It's Getting Harder to Make Money on YouTube. Retrieved February 1, 2015, from http://www.bloomberg.com/bw/articles/2013-04-22/its-getting-harder-to-make-money-on-youtube

Johnston, M. (2014, May 6). 25 Celebrities Who Got Rich & Famous on YouTube. Retrieved February 2, 2015, from http://monetizepros.com/blog/2014/25-celebrities-who-got-rich-famous-on-youtube/

Male, B. (2010, February 12). How To Use YouTube To Drive Business. Retrieved January 31, 2015, from http://www.businessinsider.com/youtube-business-2010-2?op=1

Roberts III, J. (2010, August 27). Ask the Attorney: Videos & YouTube: Who Owns Them? Retrieved February 2, 2015, from http://www.tubefilter.com/2010/08/27/ask-the-attorney-videos-youtube-who-owns-them/

Rosenblatt, S. (2013, April 22). As 'Gangnam Style' hits 2B YouTube views, music fans should cheer. Really. Retrieved January 30, 2015, from http://www.cnet.com/news/as-gangnam-style-hits-2b-youtube-views-music-fans-should-cheer-really/

Contact Information

To contact the author of this article, “What You Need to Know About YouTube: An Executive Roadmap for Social Media Success,” please email the author at [email protected].     

The mission of the College of Business at Southeastern Louisiana University is to provide educational experiences for personal, professional and intellectual growth, enable the creation and sharing of knowledge to enhance learning and to advance the practice of business, and engage communities through service to positively impact their future. The Accounting and Business programs in the College of Business are accredited by the AACSB International.