BRAND

MANAGEMENT

YouTube for Brands

WAC

Group – 5

BY-
Akanksha Verma 19021141008
Swayam Awasthi 19021141121
Aparna Singh 19021141023
Venushree Agarwal 19021141134

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 CONTENT

1. Introduction______________________3
2. How Television Advertising worked___3
3. The target of TV advertisement ______4
4. Evaluation of TV ads _______________4
5. Types of YouTube channel __________4
6. Advertising on YouTube ____________5
7. Brands on YouTube ________________6
8. Brand experience on YouTube _______6
9. Red Bull _________________________6
10.Cover Girl _______________________7
11.L’Oréal _________________________7
12.Lego ___________________________7

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INTRODUCTION

This case analyses the changes applied by YouTube to make the

massively popular website more attractive to brands. Building
from its foundation of amateur, user-generated content, YouTube
had turned to experimenting with professionally- and organizing
its videos into channels. When question arises  to capture
marketing dollars to its online video platform, it struggled. The
societal video web site aspires to be a 'brand safe' platform which
important marketers use to market their video ads. Should
important brands switch a significant part of their TV advertising
budget to online advertisements on YouTube.

How Television Advertising worked

● In 2014, television was the most popular medium for national advertisers.
● 98% of US households owned a television, broadcast TV advertising allowed for a diversity
of advertising messages with access to a wide audience.
● How TV Ad space was bought in the US –
i. The five primary national television networks – CBS, NBC, FOX, ABC, and the CW
were the most popular TV content watched in 2014.
ii. Network and stations generated revenues by selling airtime to advertisers, typically
in length of 15, 30, 60 seconds, called spots.
● How TV audience size was measured –
i. Nielsen measured audience by sampling the viewing habits of a few chosen
households, using personal diaries kept by a panel of viewers or set-top boxes
connected to their TVs.
ii. Reach and avg. frequency values could be multiplied together to measure a show’s
Gross Rating Point (GRT).
iii. Target Rating Point (TRP) was calculated in the same way, but as based on a specific
target consumer demographic.
● Set-box data usually revealed that around 4% to 17% of the audience left during commercial
break, depending on the channel.

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The target of TV advertisements
● An average American viewed Tv for five hours per day in which they were exposed to 160
ads per day or 58400 per person per year.
● Characteristics of the viewer, content of program and time slots provided marketers to
shape their ads for specific types of consumers. Tv could access customer profiles by a third-
party survey, broad targeting was attainable using Nielson-collected data.
● Location, age, gender, are used to shape the message according to the target audience.
Television provided more targeted ads based on interests such as History channel, food
network, etc.

Evaluation of TV Ad
● It was challenging to determine a TV ad’s impact on sales as consumers were exposed to
multiple marketing messages and tactics at the same time. An ad’s effectiveness was based
on what sort of impact it was intended to have.
● Ads could be divided into a brand image and direct response. Brand-image ads were made
to increase the awareness and favourability of a brand's claim and were assessed via recall,
recognition, and attitude surveys.
● Direct-response ads were to provoke an immediate response from the consumer, and
usually contained a call-to-action, they were evaluated based on sales or other behavioural
responses.
● Testing an ad's effectiveness was done before or after it was broadcasted. Pre-Testing
before ad campaigns were launched measured the impact of the ad content by focus groups
and lab testing of view responses.
● Protest were done after the ad was broadcasted and assessed the impact of the ad content
in conjunction with the media. Split cable was used by marketers in which different versions
of an ad in different geographic areas and then compare the impact on sales.

Types of YouTube Channels

● YouTube's content was organized in channels according to personal preferences, genre, or

brands. By 2014, there were three types of channels available for brands on YouTube:
standard user channels, brand channels, and custom brand channels. 

● By registering on the site, anyone was free to upload videos, make playlists of favourite
video, mark videos for later viewing share them on social media sites, and subscribe to
YouTube channel this resulted in content being personalized.

● The second option was a brand channel. These were offered only to brands for the purpose
of corporate branding. These were channels that were used by brands to house media
assets, such as tutorials, commercials, behind-the-scenes videos, and other content relevant

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 to their customers. Only 7.5% of the YouTube videos hosted by the world's top 500 brands
were repurposed TV commercials. 
● The third type of channel was the Custom brand channel which was not available for free
and costed a minimum of $200,000 per year. Companies had access to customized features,
such as a unique channel layout, and add-on features. Brands that wanted to upload live
streaming of video content or extensive user-generated content were customers of this
channel. 

● The fourth type of channel introduced at the end of 2011 was Original channels through
which approximately $150 million in funding was given to well-known celebrities ranging
from rapper Jay-Z and comedian Amy Poehler to niche entertainment brands such as Vice
and Nerdist. By the end of 2013, YouTube stopped financially supporting and referring to
original-content channels.

Advertising on YouTube
● Advertising on YouTube was available in both video and non-video formats. The non-video
advertising format consisted of banner ads, which appeared to the right of the selected
video or directly above it.
● Display ads were bought using Google AdWords, a keyword-based auction platform, in a
similar fashion to its paid search results in Google's main website. Also, transparent overlay
ads, which were text ads that appeared at the bottom of the video were present.

● There were two types of ads in video format: non-skippable and skippable. Non-skippable
ads were available before, during or after the video content and purchased on a CPM basis.
These could be clicked on to drive viewers to a web page or channel. YouTube called
skippable ads TrueView," as these had an option to be skipped. TrueView ads started
automatically before the desired YouTube content played. After five seconds, the viewer
gets the option of watching the rest of the ad or skipping it.

● Advertisers were only charged for ads viewed for 30 seconds, or the duration of the ad
whichever was shorter. Google claimed that between 15% and 45% of YouTube viewers let
the entire ad play.  But completed view rates as low as 10% were not uncommon.

● TrueView ads could be placed in-search, appearing as a result of a YouTube search,

suggested video next to a selected video, advertisers paid only when someone clicked on
the Video-to-watch-it or appearing before, during or after a video was watched, advertisers
paid when viewing lasted 30 seconds or the ad's duration.

● Estimates for CPMs ranged from $0.50 for display ads, $3 to $5 for ads served on user
channels, and $15 to $25 to advertise on the most popular original-content channels. The
rates charged for completed views of TrueView video ads, cost per thousand views (CPV)
were reported to be between $10 and $500, depending on the keyword purchased, location
of the world, and channel advertised. 

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 ● YouTube-had fell by about one-third from June 2012 to April 2013 in terms of CPMs on
popular video sites according to research firm Tube Mogul since 2011. Pre-roll video CPMs
decreased from an average of $9.35 to $6.33. A Byte, a popular channel the decline in ad
rates was greater than 50%.

● Excess of user-generated content was the reason for the decline in CPM that suddenly
became available for advertisement placement. In 2013, YouTube decided that the company
would reduce the minimum price charged for the sponsorship of the most popular original
content channels to $1 million in response to falling CPM. 

  Brands on YouTube
● Google reached 88% of the American Internet video audience in 2013 and for many of the
world’s top brands; it played a major role in the digital video advertising plans.
● Through links with social media sites such as Twitter, Facebook and LinkedIn, brands were
able to use YouTube as the central video marketing hub for all their video content, not just
ads.
● There were 2 types of brand-related content on YouTube-
1. Video content that brand themselves created, such as short films, clips featuring
celebrity spokespeople, contests, tutorials etc.
2. User generated content- Videos that users created, with or without the involvement
or approval of the brand. It took the form of product reviews, spoofs of ads, or
recordings of untraditional product usage.

Brand Experiences on YouTube

Pixability, a Boston-based YouTube marketing software company, released a report on the use of
YouTube by the Top 100 global brands in August 2013. Some of its prominent findings were-
● The brands which were most successful produced videos for YouTube on an ongoing basis,
with leading brands producing as many as 500 videos per month.
● These brand videos were viewed on an average only 37,000 times.
● Only 0.6% of brand videos had 1 million or more views.

YouTube had initiated a shift from scattered to thematically group videos or channels. Red Bull,
CoverGirl, L’Oréal, and Lego were among the top brands having more YouTube subscribers than
many of their competitors.

Red Bull

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 ● A favourite energy drink of students, sports enthusiasts and others who desired a
carbonated beverage with a strong dose of caffeine and glucose. The product claimed 43%
of the energy drink market and was a strong media brand
● Launched Red Bull Media House in Europe in 2007. Its most well-known production Red Bull
Stratos, received 8 million live views on YouTube, one of the highest numbers ever for a live
YouTube stream.
● Red Bull’s primary YouTube channel had 3 million subscribers.
● In addition to its main standard channel, Red Bull owned brand channels on YouTube, such
as Infiniti Red Bull Racing, Red Bull BC One and Red Bull Music.

Cover Girl
● Cover girl an American cosmetics brand owned by P&G targeted young population and was
sold primarily in drugstores, convenience stores, and supermarkets at a reasonable price.
● .At the end of 2013 its youtube channel had 17000 subscribers and 8 million views.the six
most popular videos on the channel accounted for 6 million views and included videos such
as commercial shoots interviews with brand spokespeople and makeup videos and CoverGil
commercials.
● In june 2013 CoverGirl and pantene which is also a product of P&G entered into a pilot
program called BrandID.

L’Oréal

● L’Oréal was the world’s largest cosmetics and beauty products company with 22 billion
euros in sales in 2012.They announced the appointment of Marc Speichert as the chief
marketing officer. Speichert increased digital marketing budgets by double digit percentages
every year.

● In 2010 L’Oréal appointed a young Vietnamese American woman Michelle Phan, as the
official video makeup artist for Lancôme brand. She had started making makeup videos in
her bedroom for a while working her way through college as a waitress. Her first makeup
tutorial video had 40,000 views per week.

● After the success of those videos with Phan, L’Oréal made a deal with Demand Media to
produce several hundred short form beauty tutorial videos.

Lego

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 ● Lego was a brand of colourful interlocking building blocks embraced by users of all age
groups. This 81-year-old toy making company from Denmark owned by a family business
was the largest toymaker in the world. It had also licensed relationships with brands such as
Star Wars, Toy Story and Cinderella.

● Lego had a YouTube channel that hosted 2000 videos, had 220000 subscribers and 119
million total views. Lego had a YouTube brand channel that hosted about 2000 videos had
220000 subscribers and 119 million total views.

● The brand channel also had subchannels that had videos for special interests such as
games, movies, science, education. Most of these videos had 30000 to 50000 views and the
most popular one would receive around 1 million.

● Legos fans also created stories of their own and uploaded it on YouTube. Some of the
popular videos are of Michael Jackson’s Thriller that had 7 million views and the other one of
Star Wars that had 10 million views.

Would Brands Follow Youtube?

Youtube tried to be different from television by not charging advertisers for ads skipped by
users .It also sponsored professionally produced long form content organised videos in the
form of channels and experimented with subscription fees.The question arises whether the
top brands should consider moving more of their tv ad budgets to youtube.If so what should
their strategy be in terms of use of channels , paid advertising space and content?