This research considered whether YouTube is a good advertising method to encourage people to buy

new products, to help company to increases revenue. Aims Find out how YouTube increases company
revenue Find out whether YouTube changes people’s shopping habits Find out if YouTube is a useful
advertising tool for a company 1.2 Objectives Give advice to companies as to how YouTube may be used
to increase company revenue Offer advice as to ways in which YouTube may influence changes in
shopping habits Method of Research The project is based on secondary research and primary research.
Secondary research information was used to gain information about YouTube and Internet advertising
from academic books, journals, newspapers and websites.

It was conducted on the 20th May 2013. Findings from secondary research YouTube is one of the most
successful websites in the world. Many people may watch and listen to this website. As a result,
YouTube can be an effective advertising medium in marketing. Therefore, many companies spend a lot
of money on YouTube to increase their revenue.

Conclusions & Recommendations To sum up, it is clear that there is 80% of interviewees used YouTube
to find out new music, so YouTube had many different types of customers and so it is good for
advertising companies’ products. Moreover, the improved YouTube advertising strategies in 2012 had
raised the number of intervieweeswho watch more the mandatory video advertisements and it can
change people’s shopping habits. These findings demonstrate that YouTube canincrease
people’sinterest and as a result encourage them to buy advertised products.

Likewise, YouTube can increase company revenue, because it can be seen from appendix (I, where 60%
of interviews had bought a product advertised on YouTube after watching the video. So YouTube it can
influence people’s shopping habits. Limitations of the Research This is the project allocated and the lack
of experience is the biggest problem to be faced.

When people are interested in that music or products they can get more information and buy them.
Secondly, YouTube will make an analysis of every user, such as what they often view. Then YouTube will
handle the data and will propose some similar video to users. Also, YouTube will give the data to some
companies which are related to that video to do some research inform them about user habits.

Nevertheless, there appears to sufficient evidence to demonstrate that the money spent on such
advertising is profitable. Firstly, YouTube net revenue was $2.6 billion in 2012 an increase of 35%
compared to the second quarter of 2011 (Larry. 2012). From this result it can be seen that many
companies spend a lot of money on YouTube advertising, because in this generation, time spent on
computers is increasing and many people find some entertainment from YouTube.

3 billion people watch YouTube every day (Henry. 2011). Many companies can see that YouTube has
different types of customer. So it is a potentially useful tool to promote their company. For example,
VEVO is the only company that has legitimate music channels on YouTube and it has many subscribers.
So, when people watch a music video, it will include advertising about that music or other products.

The seventh question, people agreed that YouTube could change their shopping habits, it can be seen
from appendix (H), the agree rating score of 4 is 35% and the disagree rating score of 2 is 20%,
representing that more interviewees YouTube can change their shopping habits. Since the percentage of
people strongly agree and strongly disagree are the same of 5%, a conclusion cannot be drawn. The
eighth question, have they ever bought a product advertised on YouTube after watching the video, is
shown in appendix (I), that 60% of interviewees have bought a product advertised on YouTube after
watching the video and the remaining 40% said they did not purchase the product.

There are different typesof customer, so many companies focus on YouTube for this market. However,
some people think YouTube is not a useful method for advertising; because many people may ignore the
15 seconds mandatory video advertisements or may not concentrate on the video advertisements
(Fisher. 2011).

Introduction Nowadays, numerous people spend a lot of time using the Internet. Therefore, many
companies invest substantial capital onInternet advertising to increase their revenue. YouTube is a
useful method to advertise company produce, because 3 billion people watch YouTube every day
(Henry. 2011).