A Comprehensive Marketing Strategy of YouTube – Detailed Analysis

Quick Read

 

The marketing strategy of YouTube involves several activities, all of which are used to promote their brand, product, or service. Creating a YouTube channel, defining a target audience, analyzing competitors’ research and creating quality YouTube videos are some important steps to keep in mind while formulating one’s YouTube marketing strategy.

Let’s be honest – YouTube is one of the most addictive platforms present today and for good reason. People come on this platform to search and learn information in a video format. But have you ever wondered why?

In this case study, we’ll take a look at the marketing strategy of YouTube, which includes its marketing mix, digital presence, competitor analysis, and SWOT analysis. So, without further ado, let’s get to know YouTube as a company.

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About YouTube

 

Source: Google

Founded in 2005 by Steve Chen, Chad Hurley, and Jawed Karim, YouTube quickly became the world’s premier video-sharing platform. The company’s mission is to give everyone a voice and show them the world. Acquired by Google in 2006, the brand is known today for its diverse content and over 2 billion logged-in monthly users, making it a cornerstone of digital media.

While it is typically known as a platform that can be used for free, it’s worth noting here that YouTube now sells paid content like movies and exclusive content. Here, YouTube and approved creators are members of Google’s AdSense program, which increases revenue for both parties.

YouTube, being an important element of digital marketing, is taught by reputed institutes in their digital marketing course so that aspirants can learn this crucial skill.

Now that you’ve understood YouTube as a company, let’s see the marketing strategy of YouTube.

 

YouTube Marketing Case Study: Statistics You Need to Know

• As of 2023, YouTube had over 2.5 billion monthly active users (source: Statista).
• YouTube’s advertising revenue reached $29 billion in 2022  (source: Alphabet Annual Report 2022).
• More than 500 hours of video are uploaded to YouTube every minute (source: YouTube Press).

 

YouTube Marketing Case Study: What’s New With the Brand?

Before discussing  YouTube’s marketing strategy, let’s first explore recent interesting developments related to YouTube:

Business News

YouTube has announced plans to expand its YouTube Shorts feature to compete more aggressively with TikTok and Instagram Reels.

Product Launch

In early 2023, YouTube introduced ‘YouTube Premium Lite,’ a more affordable subscription model offering ad-free viewing.

Marketing News

One of the YouTube marketing strategies involved the launch of the ‘Create with YouTube, encouraging users to explore their creativity and share original content.

Celebrity News

YouTube signed an exclusive streaming deal with popular musician Billie Eilish, featuring live concerts and behind-the-scenes content.

If you want to learn more about YouTube along with other elements of digital marketing then enrolling in an online digital marketing course is highly recommended.

 

Buyer Persona

The buyer persona of YouTube refers to the general description of its customers. The table below illustrates customers’ lifestyles, pain points, and reasons for purchasing YouTube products.

 

Based on the above-mentioned description, it’s no surprise that YouTube’s marketing strategy involves the use of platforms like Instagram and Twitter to promote the consumption of content in video format. This strategy shares similarities with the marketing strategy of Twitter, where engagement and real-time updates keep users involved and informed.

Before we dive into the marketing strategy of YouTube, let’s gain an understanding of its product mix.

 

Marketing Strategy of YouTube

YouTube employs various marketing strategies to maintain its dominance. These include leveraging user-generated content, personalised recommendations, and investing in original programming. Their recent ‘Create with YouTube’ campaign encourages content creation, enhancing platform engagement and diversity. This campaign featured tutorials and success stories from popular creators, offering inspiration and practical advice to new and aspiring YouTubers.

Campaign Analysis: One of the best YouTube marketing strategies, the ‘Create with YouTube’ campaign successfully taps into the platform’s core strength—user-generated content—encouraging creativity and broadening the range of available content.

Let us look into the Marketing Mix of YouTube, that is, the foundation for their  Marketing Strategy.

 

Marketing Mix of YouTube

In a nutshell, the marketing mix is the set of actions or tactics, that a company employs to market its brand or product. This is a detailed examination of YouTube’s marketing mix. Here, we’ll investigate YouTube’s 4Ps (Product, Price, Place, and Promotion) and explain how it has used these marketing techniques to convey its message to customers.

1. Product Strategy

As mentioned before, YouTube is a video-sharing website that allows users to upload and share videos.

Anyone can watch videos on its platform, but only registered users can upload videos. It has put music, news, documentaries, sports, dramas, films, and a variety of other types of videos at the users’ fingertips. YouTube Go, YouTube Kids, YouTube Music, YouTube Originals, YouTube Premium, YouTube Studio, and YouTube TV are its primary product categories (YouTube, 2020).

Source: Google

This highlights how diverse YouTube’s products are. For example, YouTube Kids is an app for kids to have fun in a safer and more contained environment. YouTube also has a recommended video service that assists users in discovering the videos they enjoy. This user-focused customization is similar to the marketing strategy of Netflix, which also uses advanced algorithms to tailor recommendations and enhance user engagement.

2. Price Strategy

Anyone can access YouTube for free. This has been one of the most important factors in the company’s success. However, not all services are provided for free! YouTube TV, for example, costs $64.99 per month and includes 6 accounts. It has over 85 top channels of entertainment, news, live sports, and more. What’s more, their programmes can be recorded without worrying about storage limitations.

 

Source: Google

YouTube’s pricing strategy is an effective one, combining both free and paid services.

YouTube advertising is also inexpensive. Most businesses begin with YouTube as their advertising platform, spending around £6 per day on local campaigns. YouTube typically charges advertisers only when people watch their ads or engage in some way, such as clicking on a call-to-action overlay.

3. Place Strategy

YouTube is available on all smart devices and major browsers; however, mobile devices account for 70% of all watch time. It has been localised in over 100 countries, and viewers can watch its shows in 80 languages (YouTube, 2020).
However, it should be noted that YouTube is not available in all countries. It also t occasionally bans YouTubers for violating its online terms of service and removes their content from the platform.

4. Promotion Strategy

Word of mouth has been one of the most important drivers of YouTube’s global growth has been word of mouth. Every minute, approximately 500 hours of videos are uploaded, and millions of people watch and share them. This spreads the name of YouTube from one end of the globe to the other.

YouTube also employs several sales promotion strategies. For example, to entice advertisers to use its platform for digital marketing, it frequently offers $100 in free credit for every $50 spent on video ads.

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YouTube Marketing Strategies (Digital)

Here are some important strategies that help in the generation of YouTube marketing ideas:

SEO Strategy: YouTube optimises video titles, descriptions, and tags with relevant keywords to improve search engine rankings and increase video discoverability.

SMM Strategy: YouTube actively engages with users on its platform and other social media channels by sharing updates, trending videos, and interactive content.

Ecommerce Strategy: YouTube’s integration with Google Shopping allows users to purchase products directly from video ads and creator channels, enhancing the e-commerce experience.

Mobile App: The YouTube mobile app provides a seamless viewing experience with features like offline downloads, subscriptions, and personalised recommendations.

Influencer Marketing Strategy: Collaborating with popular YouTubers and influencers, YouTube leverages their reach to promote the platform’s features and new content.

Want to learn more? Take a quick peak at our digital marketing case studies.

 

YouTube Marketing Strategies and Advertising Campaigns

The ‘YouTube Rewind’ series stands as one of YouTube’s most famous campaigns, recapping the year’s most popular videos and trends annually. This campaign not only highlights the platform’s diverse content but also engages the community in reflecting on the year’s cultural milestones. For those looking to understand the intricacies of digital platforms like YouTube, exploring digital marketing courses in thane can provide valuable insights into effective content strategies and audience engagement techniques.

 

YouTube Channel’s Competitor Analysis

In short, the term ‘Competitor analysis’ within the marketing and strategic management field involves evaluating the strengths and weaknesses of both – existing and potential competitors. This analysis provides a strategic context for identifying opportunities and threats from both, an offensive and defensive standpoint.

YouTube is the market leader in the online video market, with 2 billion registered users and $15 billion in advertising revenue.

So, without further ado let’s take a look at the top competitors of YouTube.

– VIMEO

Source: Google

Vimeo is an online video-sharing platform owned by the InterActive Corp (IAC) group. It was founded in 2004 by filmmakers Jake Lodwick and Zach Klein who wanted to create an easy and fun way for their friends to share videos. Today, it is the meeting place for 150 million video creators worldwide, has 1.24 million subscribers, and generated $ 160 million in revenue in 2018 with a total of 8,700 employees.

The service is free to use and does not include advertising. It also includes options to share, store, and comment on videos, as well as a social network. Their revenue is generated by monthly and annual subscriptions that users pay in exchange for cloud-based services that allow them to create, host, stream, monetise, analyse, and distribute online content on various devices.

For professionals looking to enhance their digital skills, exploring digital marketing courses in Gurgaon could provide valuable insights into leveraging platforms like Vimeo for strategic content distribution and engagement.

 

– DAILYMOTION

Source: Google

Dailymotion is a French website that allows users to upload and share videos. It is available in 25 languages and has 43 localised versions worldwide. The platform was founded in 2005 by Benjamin Bejbaum and Oliver Poitrey. It is now worth $128 million and generates $110 million in annual revenue. It currently has 300 million active users.

Dailymotion offers benefits such as advanced algorithm-based recommendations and the ability to discover sports, music, politics, fashion, and eSports content from around the world. The integrated player has been used to watch over 3.5 billion videos. All users are free to share their videos, and the platform provides creators with innovative technology resources, great flexibility, and visibility.

For those interested in enhancing their digital skills, exploring digital marketing courses in Surat could provide valuable insights into leveraging online platforms like Dailymotion for effective marketing strategies.

 

– TWITCH

Source: Google

Twitch is an American platform that specialises in video game and eSports content. It was founded in 2011 by Justin.tv and was purchased by Amazon for $1 billion in 2014. It generated $230 million in revenue in 2019 and has roughly  1,500 employees. It has three business units, that is, their subscription service, advertising, and the sale of bits’, which users use to tip and cheer on their favourite streamers as well as share emoticons with their friends.

Every month, 3.2 million users broadcast live. Furthermore, the company has a library of 124 million clips available on demand. It is the most popular video service among fans of eSports and video games.

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• Noted below are a few other YouTube competitors: TikTok: Renowned for its concise video content and the viral trends it spawns.
• Instagram: Competes with YouTube through IGTV and Reels, focusing on visual storytelling.
• Facebook: Offers video content through Facebook Watch and integrates videos into the social media experience.

 

Marketing Strategy of YouTube – Failed Campaigns

YouTube Rewind 2018 was a highly anticipated annual video celebrating the year’s trends, creators, and moments on the platform. How did it fail?

Issue: The 2018 edition of YouTube Rewind was heavily criticised for being out of touch with the community and missing significant creators and events.

Backlash: The video became the most disliked video on YouTube, leading to widespread negative feedback and memes mocking the effort.

Response: YouTube acknowledged the feedback and made efforts to improve subsequent Rewind videos by incorporating more community input and highlighting key moments more accurately.

For those interested in learning more about content creation and community engagement, they can explore a free ChatGPT course to enhance their skills.

 

YouTube’s Digital Marketing Strategies 

Customers can easily browse through your company’s portfolio if you have a digital presence. It allows you to interact with your customers while keeping you ahead of the competition. YouTube relies on social media platforms too. Let’s take a look at them.

– Facebook

Source: Google

1 Hundred million followers on Facebook

 

– Instagram

Source: Google

27 Million+ Followers on Instagram

 

– Twitter

Source: Google

72 Million+ Followers on Twitter

Along with the above platforms, YouTube also has a presence on LinkedIn, one very important platform in which every working professional must build an online presence. Want to learn more about LinkedIn? Check out this free masterclass on LinkedIn Essentials.

Now that you’ve seen a glimpse of YouTube’s digital presence and activities, let’s take a look at its SWOT analysis.

 

SWOT Analysis of YouTube

A SWOT analysis is a model that helps to identify the strengths, weaknesses, opportunities, and threats of a company. Its primary goal is to assist organisations in developing a comprehensive understanding of all the factors involved in making a business decision.

Noted below is YouTube’s SWOT analysis:

1. Strengths of YouTube

• Largest Video sharing site: Simply put, YouTube is the world’s largest video-sharing website. It has billions of views and continues to grow every day.
• Viral concept: Viral marketing is a concept that arose as a result of YouTube videos. In fact, when social media first emerged, it was primarily focused on YouTube videos, which quickly went viral. YouTube can be considered the birthplace of viral marketing.
• Huge revenue driver for Parent company: Google, which is now Alphabet, was YouTube’s parent company. Because of the number of viewers who visit the site daily and the advertising revenue generated, YouTube is one of the most important revenue generators for its parent company.
• Multi-lingual support: YouTube is available in 34 languages, including several localised versions. This multilingual support goes a long way toward making users feel at ease and increasing traffic to the site.

2. Weakness of YouTube

• A rise in Podcasting: More and more bloggers and podcasters are shifting away from YouTube and toward their own private podcasts, where they earn money directly from brands. Even Vimeo is growing in popularity, and many users believe that YouTube has become too noisy for brands.
• Social media shared videos: The majority of videos shared on Facebook and Twitter are uploaded directly to social media sites, and these social media sites do not allow YouTube-linked videos to be uploaded. As the popularity of social media videos grows, the popularity of YouTube videos declines. Even social media platforms like Facebook are experimenting with new ways to monetize video content.
• Copyright material: A major issue that YouTube has repeatedly encountered is users uploading copyrighted material as original content, resulting in revenue loss for the original content creator. Even movies are being leaked online at an alarming rate.

3. Opportunities for YouTube

• New customers from online channels: The company has invested a significant amount of money in the online platform over the last few years. This investment has provided YouTube with a new sales channel. In the coming years, the company can capitalise on this opportunity by better understanding its customers and meeting their needs through big data analytics.
• Adoption of the Internet and smartphones: As time goes on, more and more people are using the Internet. Even the most remote locations now have access to the internet. The same is true for smartphones. With its app becoming increasingly popular and Android being the most widely used mobile operating system, YouTube comes pre-installed on all phones, resulting in increased usage.

4. Threats to YouTube

• Intense competition: Over the last two years, stable profitability has increased the number of players in the industry, putting pressure not only on profitability but, also on overall sales.
• Isolationism (Avoidance of foreign political involvement.): The growing isolationism in the American economy may prompt a similar reaction from other governments, negatively impacting international sales.

Due to an excellent marketing strategy, marketing mix, competitor analysis, digital presence, and SWOT analysis, the brand has been able to remain at the top of its game, and with this, we have concluded the case study on the Marketing Strategy of YouTube.

 

Conclusion

YouTube is one of the most well-known companies in its field. YouTube was founded during the internet’s peak popularity, and it was later acquired by Google. When Google began marketing YouTube, the website’s traffic skyrocketed, and it is now one of the world’s largest websites. While there are numerous video-sharing platforms on the market, most brands and customers rely on

YouTube is their primary content distribution channel for matched pre-rolls and branded content.

Building a business on the YouTube platform has largely allowed brands and customers to enjoy a relatively large degree of freedom while operating in a well-established and relatively stable environment.

Mastering YouTube with other digital marketing subjects is very important. Upskilling yourself with IIDE’s Post Graduation Program in Digital Marketing and Strategy will help you develop the skillset that is needed to enter this dynamic industry.

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