Interactive Business Communication

Digital Economies – YouTube

It can be easily determined that when looking for a company via social media, one is more likely to find a twitter page or a facebook page than a YouTube channel. Not to say that companies are using YouTube, they are, it simply appears as the least likely of platforms being utilized. This is odd being that video is one of the most popular forms of advertising mediums know today. Social is what McKinsey Quarterly to as a mutation:

“Mutations create new frameworks; they are not simply new technologies, though they do leverage technologies to do new things. Historically, mutations have superseded innovations when fundamental shifts in what people want require a new approach to enterprise: new purposes, new methods, and new outcomes.” (Zuboff p. 3)

Today more than ever, social media has created a desire for a more personal relationship with the world around them. As the Harvard business review explains, the more consumers feel connected in a social way the more willing they are to pay for your product or service. (Piskorski)

YouTube offers a new perspective on traditional television advertisement. It is a mutation that differs in both content and method of delivery. Rather than force their content obtrusively on viewers during television programming must attract their viewer to them. Meaning, said content seeks to be attention earning rather than showy, meaningless attention grabbing. The result of which takes advantage of the economic concept of “The Long Tail”.

Resource: Wired Magazine

The Long Tail, popularized by Chris Anderson of Wired magazine, sates that sales of small quantities to varieties, it total, is larger than selling a singly type to a large audience. (Anderson) It is this kind of niche audience that YouTube content caters too. Content can be created at a low cost and then shared for no cost. While traditional television and online based video advertisement is not going away, YouTube is clearly a mutation of the medium that more accurately serves today’s consumers wants in terms of social relations and utilizes a more profitable economic model.

Resources:

Anderson, C. (2004, October). The Long Tail. Wired, <http://www.wired.com/wired/archive/12.10/tail.html&gt;.

Psikorski, M. (2011, November). Social Strategies That Work. Harvard Business Review, 117-122.

Surowiecki, J. (2004). The Wisdom of Crowds: Why the Many are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies, and Nations. New York: Doubleday.

Zuboff, S. (2010). Mckinsey quarterly. Creating Value in the age of distributed capitalism , 1-12.

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This entry was published on March 26, 2012 at 5:40 PM and is filed under Uncategorized. Bookmark the permalink. Follow any comments here with the RSS feed for this post.

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