Tapscott and Williams argue that it is important for new media companies to find ways to make a profit with the help of peer-produced content. The new Internet economy, (that they term Wikinomics) would be based on the principles of "openness, peering, sharing, and acting globally". Companies could make use of these principles in order to gain profit with the help of Web 2.0 applications: "Companies can design and assemble products with their customers, and in some cases customers can do the majority of the value creation".:289sq Tapscott and Williams argue that the outcome will be an economic democracy.
On October 9, 2006, it was announced that the company would be purchased by Google for US$1.65 billion in stock, which was completed on November 13. At that time it was Google's second-largest acquisition. The agreement between Google and YouTube came after YouTube presented three agreements with media companies in an attempt to avoid copyright-infringement lawsuits. YouTube planned to continue operating independently, with its co-founders and 68 employees working within Google.
There was some backlash over these new benchmarks, but frankly, the vast majority of people who lost their monetization privileges weren’t earning much anyway. Most channels make somewhere between $1.50 and $3 per thousand views, depending on their content and audience, and Google won’t even cut a paycheck for under $100 (or roughly 50,000 views — a pretty tall order for the average 14-year-old posting eyeliner tutorials). In other words, if you were looking for an easy side gig, YouTube was never the efficient choice.
Make your videos with a specific type of person in mind. This is basic advertising 101; identifying your target demographic. Don’t tell me that your demographics are 21 – 55 year old women. This is the shotgun approach that’s too general and vague. Do you talk to a 21 year old girl the same way you’d talk to a 55 year old lady? Of course not. Define your audience and create videos that’s catered to them.
“The way YouTube is distributed is not always conducive to ad revenue,” said Tim Bajarin, principal analyst with Campbell-based Creative Strategies, which tracks the the technology sector. “The YouTube ads are on the side, but they are not embedded in the programming, like you see in television.” The current YouTube format might be good for consumers, but that doesn’t mean it’s all that great for the bottom line, Bajarin said. “They are going to have to change things up,” Bajarin said.
Apart from vanity metrics such as impressions, views, likes, comments and shares, will a well-executed YouTube marketing campaign have a positive impact on your business’s bottom line? How successful you’ll find YouTube marketing ultimately depends on how you define a campaign’s success. Video content, like any other, should be created with a strong idea of the customer’s journey and your internal sales funnel in mind. It will likely take time to build a following—as with any social channel—but there are ways to get a jump start on your YouTube success, like setting up an AdWords Campaign. Ultimately, if you stay dedicated and keep producing quality content, you'll see results.
27. Maximize engagement. “Did you know the more comments a video has, the higher it is likely to rank on YouTube? Brian Dean from BackLinko found comment counts to strongly correlate with rankings, after analyzing 1.3 million YouTube videos to better understand how the platform’s search engine works… The more comments a video has, the higher it ranks. Considering YouTube’s emphasis on user engagement, this isn’t too surprising. For this reason, it’s extremely important to encourage viewers to interact with your videos. Close your videos by encouraging viewers to ‘like’ and ‘comment below.’
For example if your YouTube Channel happens to provide valuable video content for a very specific audience. Say the channel teaches business owner how to organize their finances, track their expenses and save money on taxes. Any company who is trying to reach business owners would love to place their ads on that channel because you would both share the same demographic. The people who view that channel are their potential customers.
Are you creating videos around a few specific themes? Playlists might be the perfect tool for you! Playlists allow you to curate a collection of videos from both your channel and other channels. Not only do playlists help to organize your channel and encourage viewers to continue watching similar content, they also show up separately in search results. Creating playlists provide you with more discoverable content.
In June 2009, BusinessWeek reported that, according to San Francisco-based IT consulting company RampRate, YouTube was far closer to profitability than previous reports, including the April 2009, projection by investment bank Credit Suisse estimating YouTube would lose as much as $470 million in 2009. RampRate's report pegged that number at no more than $174 million.
After you upload your channel icon and art, add a channel description, a company email, and links to your company website and other social platforms in the About section. Your description should provide more information on your company and explain what type of video content you plan on sharing. Search engines look at your description when determining how to rank your profile so incorporate relevant keywords in your overview. We’ll talk more about how to optimize your YouTube channel description below.