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HOW’S THE ADVERTISING OPPORTUNTIES FOR COMPANIES IN SOCAL MEDIA? -- YouTube & other Podcasting media Kimmy Chen, London Han, Tong Li, Eva Na, Ali Naushad Nathoo, Dongsoo Kang

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Introduction of Podcasting <ul><ul><li>Podcast = iPod + broadcast </li></ul></ul><ul><ul><li>Syndicated downloading of audio and video file </li></ul></ul><ul><ul><li>Syndicated, subscribed to and downloaded automatically </li></ul></ul><ul><ul><li>Personal On Demand broadCASTING (PODCASTING) </li></ul></ul><ul><ul><li>Catch hold in 2004 </li></ul></ul><ul><ul><li>Easy to download and update current contents </li></ul></ul>

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Introduction <ul><li>The domain “ .com” on Feb.2005 </li></ul><ul><li>“ Broadcast Yourself” launch on Nov.2005 </li></ul><ul><li>Acquisition by for $1.65 billion on Nov. 2006 </li></ul><ul><li>'s Invention of the Year for 2006. </li></ul><ul><li>2007 revenue noted as “not material” </li></ul><ul><li>Exposure to copyright issues </li></ul>

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Profile <ul><li>User base is broad in age range, 18-55 </li></ul><ul><li>52 percent of 18-34 year olds share videos </li></ul><ul><li>19 countries and multiple languages. </li></ul><ul><li>Popular category </li></ul><ul><li>Easy uploading and viewing </li></ul><ul><li>community for everyone </li></ul><ul><li>For </li></ul>Arts & Entertainment(86%)

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Trend of online video <ul><li>75 % of U.S. Internet users watched over 3 hrs of online video </li></ul><ul><li>Online video duration was 2.7 minutes </li></ul><ul><li>134 million Americans viewed over 9 billion videos online </li></ul><ul><li>Online video viewer consumed 68 videos, or over 2 per day </li></ul><ul><li>accounted for 2.4 billion videos, Yahoo! 390 million </li></ul><ul><li>captured 67 million viewers , Yahoo! 35 million </li></ul>

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Competitors Source : Hitwise, May 25 2006, Market share of page views YouTube Yahoo MySpace Google

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Competitors <ul><li>Popular social networking website </li></ul><ul><li>Strategic alliance with Google </li></ul><ul><li>World’s largest global online network </li></ul><ul><li>Launching Yahoo video search service </li></ul><ul><li>Internet video streaming service </li></ul><ul><li>Launching Soapbox </li></ul><ul><li>Software-based online digital media store </li></ul><ul><li>Selling video files </li></ul>

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<ul><li>Advertising in Social Media: </li></ul><ul><li>Premier Strategy for Social Media  Viral Marketing </li></ul><ul><li>Viral Marketing  Takes Advantage of Existing Social Networks Online To Increase Brand Exposure and Recognition </li></ul><ul><li>Transmission of Ad  Free Publicity for the Firm </li></ul>

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<ul><li>Best Known Example of Viral Marketing  Hotmail </li></ul><ul><li>Free Email Accounts </li></ul><ul><li>Tagline advertising Hotmail at Bottom of Emails Resulted in Rapid Adoption </li></ul><ul><li>Get your information fix on your phone. With MSN Mobile you get regular news, sports and ?finance updates. Try it today! </li></ul>

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<ul><li>To be Successful Firm’s Message Must: </li></ul><ul><li>Be Easy To Transfer </li></ul><ul><li>Be Free </li></ul><ul><li>Take Advantage of Other Medium’s Resources </li></ul>

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YouTube Video Example

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Best Practices of Getting Buzz on YouTube <ul><ul><li>“ Yes We Can” for Barack Obama </li></ul></ul><ul><ul><li>“ No You Can’t” for John McCain </li></ul></ul><ul><ul><ul><li>Easily share link and video clips </li></ul></ul></ul><ul><ul><li>Paris Hilton’s official site </li></ul></ul>

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<ul><li>Nintendo Wii </li></ul>Best and Worst Practices of Getting Buzz on YouTube

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Best and Worst Practices of Getting Buzz on YouTube <ul><ul><li>Dump Cupid promotion </li></ul></ul><ul><ul><ul><li>Interview with Cupid </li></ul></ul></ul><ul><ul><ul><li>Cupid Pole Dance </li></ul></ul></ul><ul><ul><ul><li>Cupid Rap </li></ul></ul></ul><ul><ul><li>Roadkill of Chrysler </li></ul></ul>

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<ul><li>Only 20 percent of online video users said they would only watch online video if it had no ads at all - 80 percent of online video users accepted the advertising as a trade-off for providing free online video content. </li></ul>Source: Jupiter Research

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<ul><li>While online ad revenues are growing 26% per year , online video ad revenues are growing 55.5% per year </li></ul>

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<ul><li>Great numbers, but is there money? </li></ul>

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<ul><li>Estimated $5.8 B spend in online video advertising in the next 4 years. </li></ul>Source: eMarketer

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Recommendation: 3 Principle to leverage the platform <ul><ul><li>“ Aggregated”: develop the function or interface that allows the audience to bring their content or also provide additional sources. </li></ul></ul><ul><ul><li>“ Syndicated”: extend their products usefulness to the locations where customers spend the most time. </li></ul></ul><ul><ul><li>“ Social”: new roles of the editors and journalists-> moderators and curators in the information flow between users and companies. </li></ul></ul>

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Recommendation (2): Sell products or content . <ul><ul><li>Niche Market: a medium which combines a great amount of diversity, interest and purposes into one single platform. </li></ul></ul><ul><ul><li>pay-per-view business : margin comes from the subscription fees. </li></ul></ul><ul><ul><li>Click-to-Buy: a affiliate link showed after video play (just announced on this Tuesday) </li></ul></ul>

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If you are not a part of online video NOW, you are not where the money is going to be

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Thank You! Questions?

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<ul><li>BACK UP SLIDES FOR Q&A </li></ul>

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How to deal with Copyright issue? <ul><li>Copyright issue of YouTube </li></ul><ul><ul><li>Most movies are inherently exposed to potential copyright infringement issues </li></ul></ul><ul><ul><li>Legal disputes </li></ul></ul><ul><ul><li>However, media group needs YouTube due to YouTube’s huge advertisement potential </li></ul></ul>

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How to deal with Copyright issue? <ul><li>How to solve it? </li></ul><ul><ul><li>Judgment based on intention or legal standard in the situation </li></ul></ul><ul><ul><li>Favorable legal distribution environment </li></ul></ul><ul><ul><li>Combination copyright protection and advertisement </li></ul></ul><ul><ul><li>Creative Commons License (CCL) </li></ul></ul>