Ryan+Miller+Wiki

Strategy Analysis

TO: Proximity Video Team FROM: Ryan Miller DATE: September 27, 2009 SUBJECT: YouTube Strategy Analysis

This is my YouTube strategy analysis. For the past 4 years, YouTube has become the dominate online video sharing website. Gen Y users are hooked on YouTube and with no competition in site, YouTube isn’t going anywhere.


 * Profile**

YouTube is a website in which users can upload and share videos with the rest of the world. This is a video sharing website created by three former PayPal employees in February of 2005. In 2006, YouTube was bought and is now currently operated by Google.


 * Competition**

Although there have been controversies in the past over YouTube and copyrighted information, YouTube has stayed strong to keep progressing and competition is nowhere in sight. In May of 2007, a study was conducted to see the top 5 online video websites (calculated by number of U.S visits). YouTube came in first, with a total of 59.95% of users visiting their site. MySpace Video came in second place with a total of 16.5% of U.S visits. In May of 2008, the same study was done to see which online video sites were progressing and a significant change in statistics was seen. Exactly one year later, YouTube’s online visits increased 26% to 79.5% of the U.S visiting. MySpace Video users dropped 44%. The second place online video website is currently sitting 65% behind YouTube on number of U.S visits. The market share in the video online websites clearly belongs to YouTube; it doesn’t appear to be changing in the near future.


 * Strategy**

YouTube’s strategy has not changed since day 1. As one website put it, “The marketing strategy of YouTube is to have a mass amount of YouTube users at your disposal to generate hype and activity within the video clip page. The more connections you have with top publishers and social media users, the easier it is to make a video go viral through the help of such entities. The hyping process for most viral videos is artificial so creating them is all about having numbers and connections.” This simple but effective strategy is where YouTube gets its revenue. By advertising, other corporations such as CBS and Google are teaming up with YouTube means big money.


 * Implications**

Because of the reasons stated above, Gen Y will continue to post and view videos on YouTube because:

· YouTube remains a free online video website. · YouTube is easy to access, and well known to the public. · Because YouTube already has so many users, people will jump on the bandwagon; meaning those who don’t use YouTube will eventually hear about it and try it out. · Current users (76%) will continue to use YouTube because they have developed a history with it. · Aspiring singers, artist, comedians, etc can gain fans, receive comments, and criticism from posting on YouTube

Every day more visits are being recorded on YouTube. I believe that YouTube will remain the number one online video website for years to come, and potentially gain more revenue by possibly charging to see some videos. Things are looking up for Gen Y and the YouTube community.


 * References**

[|Kirk] Patrick, Marshall. June 26, 2009 “YouTube Continues to Destroy Competition.” []

Wikipedia, “From Wikipedia the Encyclopedia”

[]

YouTube. “Company History” []

Kam, David. “YouTube Marketing Strategy”. June 2009. []


 * Blog Proposal**

To: Proximity Media Team From: Ryan Miller Subject: Blog Proposal Date: October 25, 2009

I am suggesting that we do our Proximity blog proposal on the potential social networking usages for businesses in the future. If businesses get an early jump and learn to use social networking to their advantage… they will attract a wide variety of people in all aspects. It is quite obvious that Gen Y is a tech savvy generation. As time passes, more and more elders will have grown up in Gen Y, being more familiar with technology. Today, technology is the main base of our society; everyone uses the internet. If businesses learn to use social networking sites to their advantage, they can do many things such as - Advertise on sites - Get input from customers/potential customers - Keep customers updated - Get information out to public in a timely fashion. There are many other things that social networking can do for businesses in the future… these are just a few.
 * Rational: **


 * Final Proposal Report**

YouTube has been dominating the online video-networking world ever since the Internet was born. It is now seeking to further its domination completely eliminating all potential competition. I propose to write a report on how YouTube is putting itself in the position to become untouchable in the online video networking world. YouTube has been significantly ahead of its competition since day 1. YouTube is now 65% (in terms of users) ahead of second place, and with new adaption’s to the website, they can potentially eliminate competition.
 * Need:**
 * · Gen Y uses YouTube more and more every day according to statistics, hundreds of home made videos from Gen Y users are uploaded every second.
 *  YouTube is becoming a way for Gen Y users to “broadcast yourself”, this is very appealing to Gen Y, and YouTube is the place to do it.
 * · In the near future, YouTube is looking to gain rights to broadcast music videos and possibly TV shows. This would combine the uses of Hulu and YouTube into one easy to access site.

YouTube is doing its best to strive above the competition by adding potential applications to its sight. Watching video and TV shows on YouTube is the next step, and this would clearly be a hit for Gen Y. The proposed report “YouTube: The Facebook of Videos”, will cover the following topics: · History of YouTube and Competition
 * Topics:**

· The need for a well rounded online video networking site

· YouTube future applications

· The Future of YouTube.
 * Sources**

I am still searching for more sources for this report, but the following are beneficial to my research so far.

[|Kirk] Patrick, Marshall. June 26, 2009 “YouTube Continues to Destroy Competition.” [] This gives a brief outline of the “competition” that YouTube is facing. Very beneficial statistics for research.

Wikipedia, “From Wikipedia the Encyclopedia” [] This site gives the history of YouTube and its future implications for Gen Y users.

YouTube. “Company History” [] This site gives an indepth outline of how YouTube was invented and what there initial intentions were. This is great to compare to the future implications of YouTube.

Kam, David. “YouTube Marketing Strategy”. June 2009. [] This site shows, again, the future of YouTube and their strategies for striving to reach these goals.


 * Sales Letter**

Mr. Christianson, Director of Marketing The Apple Store 604. E Silva Lane, Boston Ma.

Dear Josh,

I enjoyed speaking with you and your team at Proximity’s Future Media meeting regarding Apples interest in promoting its products over the Youtube Site. In the enclosed paper, you will see a prospectus for a report that I spoke about describing the new commercial feature Youtube will be developing.

As you spoke about yesterday, any additional marketing that Apple can promote over the holidays will only help sell its items. Gen Y is a very “apple based” generation, with almost 56% of Americans owning apple products. I believe proximity can work well with Apple to help promote these products.

In the first month of this, we can provide you with numbers showing how many times commercials/ads were viewed, and feedback on them. We truly believe that you will see a very large improvement on number of products sold from Apple, especially like I said, over the holiday season. YOutube is the number one video networking site on the web, and your company will benefit greatly by joining us.

I would like to take this opportunity to extend a personal invitation to our firm here in Towson to discuss further implications. Thank you for your time

Proximity Reports Improving Gen Y Since 2009 Online Video Advertisements: Marketing of the Future Current Problem: With new applications such as TiVo, businesses are facing a problem never expected. Commercials, which are a primary source for advertising, are now being skipped and fast forwarded through. This problem is dropping numbers for businesses and their sales drastically. Proximities Solution: Since focus on advertising is primarily on commercials, we feel it is very appropriate (with a growing internet community), to advertise more on the web. YouTube is the number one Video Networking site that sees millions of hits each day. Imagine every time someone clicks a video, your add pops up first. No skips. No fast forwards. 30 seconds of fame, 1,000,000 times a day.
 * Prospectus**

Avaliable now at WWW.ProximityGenYNow.Edu


 * Final Report

in e-mail**