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Google and the YouTube Acquisition

Background Introduction

  • users: amateurs to media companies
  • function: single to multiple
  • especially video-searching function

Q2: What was Google hoping to achieve by acquiring YouTube?

  • 4Ps - Place
  • 4Ps - Production
  • Copyright conflict

Thanks for listening!

Channel function

  • To users: make it easier for users to find what they wanna watch or a series of their interested videos.
  • To advertisers: concentrate on the most popular channel, this can make their investment more efficient and specific.

Right model

direction

From its business model, we can know:

YouTube maintains user’s benefit and meets advertiser’s needs

  • Google’s acquisition of YouTube is to make profit
  • But the advertising profit decrease
  • Google is not worried about it, they have some ways to deal with it.

Q3: Which features create the most value for both users and advertisers?

  • Right model direction
  • Channel function

For Users:

  • benefits:
  • reduced cost:

For Content Providers

  • benefits:
  • reduced cost

Q4: In terms of creating value for its users and content providers, how does YouTube compare with traditional channels? Explain your answer in terms of benefits, reduced costs, or a combination of these factors.

Case Analysis

Four Orientations

  • Production
  • Sales
  • Market
  • Value-Based Marketing

Q1: According to the breakdown in Exhibit 1.5, which of the four orientations best describes YouTube?

YouTube's Business Model

Value-based Marketing

We can learn:

What Google Faces

  • Customers can perform the keyword to search for relevant items.
  • Customers can search for video by the individual poster’s name.
  • YouTube can get profit by customers browse advertising.

  • Companies want make profit from marketing
  • Customers want products and services that meet their specific needs and wants or at a competitive price.

  • PVAs (participatory video ads)
  • problem: profit decreasing
  • to solve: expand its reach to traditional media
  • conflict: copy right

In 2006, Google purchased YouTube.

Q5: Visit the YouTube Web site and try some of its features. How can advertisers maximize the potential YouTube offers?

Use Channel

Q6: What risks do advertisers face if they choose to use YouTube?

Development

Content

  • Background Introduction
  • Case Analysis

Group Members

Winni 1230600087 Y2 ACCT

Mario 1230600098 Y2 ACCT

Barry 1030500044 Y4 STAT

Lucy 1030700018 Y4 GIR

Stanly 1230600066 Y2 ACCT

Google and the YouTube Acquisition

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