Do YouTube?

From February 2008

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BIGresearch compiled a snapshot of the YouTube user as part of the Simultaneous Media Usage Study (SIMM) it published last month. The average YouTuber – those who say they use YouTube.com for video or music content – is just over 32 years of age (contrary to widely-held assumptions, users are spread relatively evenly across the 18- to 24-, 25- to 34- and 35- to 44-year-old age ranges).

Forty percent of YouTubers say they regularly give advice to others about products or services: 56 percent dole out advice “occasionally.” Twenty-nine percent of YouTubers regularly purchase items online; 63 percent “occasionally” buy products online.

The upshot: Social media users, led by YouTube surfers, are an engaged group capable of influencing purchases, and they seek out sites that offer rich, entertaining experiences that they can share. They not only create and share videos, they remix them and “mash” them up – a phenomenon that’s been dubbed “collaborative social media.”

“The power of the people is getting louder and louder,” says Paula Rosenblum, managing partner at RSR Research. “Consumers have more technology at their disposal today than some retail companies. It’s incumbent on retail executives to recognize the power those customers hold.”

The industry’s general lack of enthusiasm about social networking “is tied to the loss of control they feel,” Rosenblum says. “It’s understandable, and, at the same time, it’s time to get over it. Retailers may have to reinvent themselves a little when it comes to this type of marketing; they’ll have to develop different instincts, but ultimately it’s a growing piece of the media mix and they need to be there. ”

It’s a Mall World
Retailers that have experimented with online videos have taken different approaches. Among the leaders is American Eagle Outfitters: In August, it introduced a dedicated media channel called 77E on its website, ae.com. 77E features original and user-generated content, including a range of media from music to comedy to drama.

The new platform debuted with the premiere of “It’s a Mall World,” a 12-episode series directed by Milo Ventimiglia of NBC’s “Heroes.” The series, set in a mall, features six young characters who confront real-life situations. Not surprisingly, one of the characters works at an American Eagle store. The Pittsburgh-based teen retailer followed that with a round of web shorts called “Winter Tales.”

Kathy Savitt, chief marketing officer for American Eagle, reports that both features boosted traffic to the company’s website – particularly Mall World, which delivered a lift of more than 20 percent on the nights it was shown. She recently told The New York Times that more than 75 percent of those who watched the Mall series also made a purchase.

“Social online communities are a part of our customers’ daily lives,” says Jani Strand, vice president of corporate communications for American Eagle. “Making 77E content available on sites such as YouTube enables American Eagle to make a lasting connection with its customers in a very relevant way.”

Victoria’s Secret Pink opted for user-generated videos. The chain hosted a contest inviting customers to submit videos of themselves dancing to Fergie’s “Here I Come,” and allowed consumers to vote for their favorite. The winner received a $500 shopping spree. That was followed by a promotion called Road to the Runway in which contestants vied for 30 stand-in spots on the catwalk at the Victoria’s Secret Fashion Show. Although the videos were posted on the VS Pink website, many ended up “shared” on YouTube, MySpace and Facebook, attesting to the viral nature of online videos.

Resource Interactive was instrumental in helping Pink to step into social networking and social media. Laura Evans, executive director and manager of the retail practice at the Columbus, Ohio-based company, insists it’s up to each retailer to figure out how to leverage this new tool. “All alternative media sites need to be considered, particularly when you think about how these sites have emerged as both entertainment and educational vehicles,” she says. “Retail companies need to listen to the conversation taking place on social networking sites and figure out how to get their brand to positively participate in the banter.”

A video proposal
Sierra Snowboards, a small online retailer, found that the best way to get its brand in front of YouTube viewers was to create a how-to video. Michael Harrosh, founder and CEO of the Sacramento, Calif., company, created a video on how to properly wax a snowboard. In less than four months, it was downloaded from YouTube more than 23,000 times. Along with attracting snowboard enthusiasts who might not otherwise have found the site, the views have translated into a higher search-engine ranking for the video and thus more traffic on the Sierra website.

1-800-Flowers kicks off its engagement with YouTube this month with the marriage proposal contest and another competition called Video Valentine; the company plans to build contests and events around other holidays and occasions throughout the year. Through Google Gadget, it’s also offering a free widget that users can use to send virtual bouquets or to link directly to the 1-800-Flowers website. In addition, the company is using Google’s offline ad placement services to run ads on the radio, in print and on TV, directing consumers to the YouTube channel.

Tim Armstrong, Google’s president for advertising and commerce, recently told The New York Times that 1-800-Flowers is taking advantage of how consumers use the Internet.

“That’s the game changer for YouTube,” he says, “if it can become a platform where marketers learn to leverage the community rather than reroute it [to their own websites]. This shows the ability of YouTube to capture an event like Valentine’s Day and really build a community around it.”

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