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Read MoreThe Evolution and the New Scope of the Youtube Platform
An internet giant for many years, YouTube is a streaming video sharing platform. It was launched in February 2005 by 3 collaborators, ex-employees of the company Paypal. At first, it was introduced as an online dating application in video format, but quickly evolved into the platform we know today: a video sharing environment accessible to everyone. Acquired by Google in 2006 for $1.65 billion, we count in 2022 more than 120 million connections per day on YouTube as well as 500 hours of video upload per minute in 2020. The platform is now a must: whether at school, in business or in personal life, most of the video content that we are looking for will be found on YouTube. You can see all kinds of content: educational, entertaining, or even political. All major companies publish on YouTube today, the platform representing a major commercial interest, even competing with traditional advertising channels. How to explain such a meteoric rise? How can we see the future of YouTube? In this article, I will talk about the way the platform works, with the growing economic interests it represents.
A Veritable Marketing tool
Today, YouTube has become an essential marketing tool. Indeed, with more than 2 billion monthly connections, the platform allows to reach a maximum of potential target. Many famous brands such as Disney, Samsung or Geico operate on the platform. Together in 2018, they generate more than 15.5% of the platform’s advertising revenue (https://www.actualite-fr.com/quels-sont-les-principaux-annonceurs-sur-youtube/). So why choose to invest huge amounts of money on this platform? In a marketing context, ROI, or return on investment, compares the cost of an advertising campaign to the revenue generated. In this domain, Youtube is one of the most attractive platforms on the market. Between 2013 and 2016, Google conducted a study to compare the ROI on TV and the ROI on YouTube. The results of the study show that an advertising campaign on YouTube will be more profitable than on TV in 77% of cases. Also, advertising via this platform allows to reach targets that cannot be reached on TV: young people.
A New Kind of Audience
In a world of technological upheaval, traditional broadcasting channels such as television or radio are less and less attractive for the new generations. Just like the most popular social networks, YouTube is creating a real link between the video makers and the viewers: communities are born. Youtubers evolve and grow along with their community, and therefore offer content that is always adapted to the age / tastes. Also, the principle of video catalog “on demand” and free (with ads) is in trend, it fits the current consumption pattern of generation X and Y. More recently, Youtube has chosen to add a new feature, the “Shorts”, a short video format similar to the tiktok format and a live streaming system, like Twtich. The will is to keep young people on the platform, by offering all the most popular features of the moment.
The Professionalization of the Platform
In light of the platform’s traffic and the profitability of advertising campaigns, product placements are now common on YouTube. They are to be differentiated from the classic advertising of Youtube: these product placements are made in agreement with the youtuber and appear during the video and not before. These additional incomes generated by the videographers now allow solid investments to produce videos. It is now common to find YouTube channels operating as companies, with clearly established business plans. The youtuber “Poisson Fécond” who produces educational videos on various subjects employs 15 people in his Lyon-based company “KHUNDAR”: director, editor, sound engineer: we are getting closer to the way television works while keeping the authenticity of the platform and the interaction it allows. Also, we can take in France the example of Webedia, an agency specialized in online media which concentrates within its headquarters in Paris dozens of more or less known youtubers.
They benefit from advice as well as equipment to make their video. Webedia had a turnover of 95 million euros in 2020 (Webedia Group). The company has contributed to the rise of Squeezie, today the first youtuber in France. We are far from the time of the youtuber who shoots a video in his room with his cell phone.
Youtube is a platform that has been able to ride the wave of the web at its creation, and is now positioned as the undisputed leader of streaming video service. Year after year, we observe the professionalization and the seriousness of the platform’s actors. In a few years, we have gone from the youtuber Squeezie, laughed at and ridiculed by Thierry Ardisson on television in 2017, to the French youtuber/influencer “Léna Situation”, muse of Dior in 2022, guest of the Met Gala and above all the most powerful fashion influencer in the world (Media Impact Value). Youtube, like other platforms such as Twitch, represents for me the future of video media, and its current status is not a coincidence: it represents years of progress, learning and professionalization in the sector. It allows millions of people to learn or be entertained, with easy and free access. And you, could you do without YouTube?
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References :
https://www.ohmymag.com/people/actu-people/lena-situations-la-plus-influente-des-influenceuses-est-premiere-de-ce-classement-international_art147492.html
YouTube.fr
Dior.com
https://thesocialshepherd.com/blog/youtube-statistics))