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Revenue plan
Market share of YouTube Corporation is close to 60% of all the internet video services. Originally, it is a big marketing operation service, as numerous entrepreneurs are uploading their commercial videos, and gain exposure from YouTube using viral video strategies. It is stated that 6.2 million tune into YouTube.com daily.
The pricing of the services entail the fee for uploading commercial video.
- YouTube General: $50K or greater spend on YouTube within 90 days.
- YouTube Brand Channels: $200K or greater spend on YouTube only.
- YouTube Contests: $500K or greater spend on YouTube only.
- YouTube Homepage Roadblock: $175K/day flat fee plus a $50K incremental spends on Google and YouTube over 90 days ($225K or greater total spend).
Premium flight dates may require a higher initial flat fee. (Barnes, 2009).
As for the revenues, Lastufka (2008) emphasize that YouTube has $500 million of revenues per year.
Marketing Budget
The personnel of the company is divided into technical and administrative parts. Originally, technical personnel is responsible for the proper functioning of the system.
This analysis presupposes the analysis of the marketing expenses in comparison with the Gross Profit in the context of the incomes and market share. Originally, the tendencies are represented on the graph, while the real situation is featured with the possible fluctuations.
Profit plan
The analysis of the profit plan generally entails the calculation of the net profit, taking into consideration the matters of sales revenues, margins, ROI, ROS and net marketing contribution.
Break-even analysis
This analysis presupposes the analysis of the marketing expenses in comparison with the Gross Profit in the context of the incomes and market share. Originally, the tendencies are represented on the graph, while the real situation is featured with the possible fluctuations.
Performance scorecard
Income Statement
Originally, the matters of Return on Sales are stated in the previous slide. In comparison with the previous year, the results of 2009 appear to be rather satisfying, and, it should be emphasized that the market of internet video advertising is rather stable, as the marketing performance and sales of YouTube are growing stably.
The only ratio, which should be paid attention here is the operating income.
- 2006 $ 30 400 000;
- 2007 $ 45 300 000;
- 2008 $ 80 500 000;
- 2009 $160 000 000.
Reference List
Barnes, S. (Ed.). (2009). E-Commerce and V-Business: Digital Enterprise in the Twenty-First Century (2nd ed.). Oxford, England: Butterworth-Heinemann.
King, N. J. (2008). Direct Marketing, Web Advertising, and Consumer Privacy: Ensuring Adequate Disclosure and Consent Mechanisms for Emerging Video Advertising Practices. Federal Communications Law Journal, 60(2), 229.
Lastufka, A., Dean, M.W. (2008) YouTube: An Insiders Guide to Climbing the Charts OReilly Media, Inc.
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