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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

Podcast = iPod + broadcast

Syndicated downloading of audio and video file

Syndicated, subscribed to and downloaded automatically

Personal On Demand broadCASTING (PODCASTING)

Catch hold in 2004

Easy to download and update current contents

Introduction

The domain “ .com” on Feb.2005

“Broadcast Yourself” launch on Nov.2005

Acquisition by for $1.65 billion on Nov. 2006

's Invention of the Year for 2006.

2007 revenue noted as “not material”

Exposure to copyright issues

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Profile

User base is broad in age range, 18-55

52 percent of 18-34 year olds share videos

19 countries and multiple languages.

Popular category

Easy uploading and viewing

community for everyone

For

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Arts & Entertainment(86%)

Trend of online video

75 % of U.S. Internet users watched over 3 hrs of online video

Online video duration was 2.7 minutes

134 million Americans viewed over 9 billion videos online

Online video viewer consumed 68 videos, or over 2 per day

accounted for 2.4 billion videos, Yahoo! 390 million

captured 67 million viewers , Yahoo! 35 million

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Competitors

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YouTube

YahooMySpace

Google

Source : Hitwise, May 25 2006, Market share of page views

Competitors

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Popular social networking website

Strategic alliance with Google

World’s largest global online network

Launching Yahoo video search service

Internet video streaming service

Launching Soapbox

Software-based online digital media store

Selling video files

Advertising in Social Media:

• Premier Strategy for Social Media Viral Marketing

• Viral Marketing Takes Advantage of Existing Social Networks Online To Increase Brand Exposure and Recognition

• Transmission of Ad Free Publicity for the Firm

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• Best Known Example of Viral Marketing Hotmail

Free Email Accounts

Tagline advertising Hotmail at Bottom of Emails Resulted in Rapid Adoption

Get your information fix on your phone. With MSN Mobile you get regular news, sports and ?finance updates. Try it today!

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• To be Successful Firm’s Message Must:

Be Easy To Transfer

Be Free

Take Advantage of Other Medium’s Resources

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YouTube Video Example

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Best Practices of Getting Buzz on YouTube

“Yes We Can” for Barack Obama

“No You Can’t” for John McCain

Easily share link and video clips

Paris Hilton’s official site

Nintendo Wii

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Best and Worst Practices of Getting Buzz on YouTube

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Best and Worst Practices of Getting Buzz on YouTube

Dump Cupid promotion

Interview with Cupid

Cupid Pole Dance

Cupid Rap

Roadkill of Chrysler

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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.

Source: Jupiter Research

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While online ad revenues are growing 26% per year, online video ad revenues are growing

55.5% per year

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Great numbers, but is there money?

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Estimated $5.8 B spend in online video advertising in the next 4 years.

Source: eMarketer

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Recommendation: 3 Principle to leverage the platform

“Aggregated”: develop the function or interface that allows the audience to bring their content or also provide additional sources.

“Syndicated”: extend their products usefulness to the locations where customers spend the most time.

“Social”: new roles of the editors and journalists-> moderators and curators in the information flow between users and companies.

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Recommendation (2): Sell products or content.

Niche Market: a medium which combines a great amount of diversity, interest and purposes into one single platform.

pay-per-view business : margin comes from the subscription fees.

Click-to-Buy: a affiliate link showed after video play(just announced on this Tuesday)

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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?

BACK UP SLIDES FOR Q&A

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How to deal with Copyright issue?

Copyright issue of YouTube

- Most movies are inherently exposed to potential copyright infringement issues

- Legal disputes

- However, media group needs YouTube due to YouTube’s huge advertisement potential

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How to deal with Copyright issue?

How to solve it?

- Judgment based on intention or legal standard in the situation

- Favorable legal distribution environment

- Combination copyright protection and advertisement

- Creative Commons License (CCL)

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