YouTube and Brand Name Value
How much is YouTube’s brand worth? In late 2006 Google purchased them for $1.65 billion, even though after almost 3 years, they are still not profitable. Recent estimates place YouTube’s annual expenses between $174 – 470 million (as estimated by RampRate and Credit Suisse).
Many people do not realize that there are hundreds of other video sites with very similar features. In fact, many of their competitors started several years before YouTube.com even went live. So why has Google dumped more than $2 billion into a website that they could easily reproduce for a fraction of the cost? Simple…brand name value.
With smart marketing, impeccable timing, and arguably a lot of luck, YouTube has become THE standard for video sites. Their brand name has been used so much now that it is synonymous with “video site”. It’s a phenomena shared by few brands.
Here are a few more examples. I think you’ll be surprised how many brand names on this list you use to describe these items. Is YouTube the new Kleenex?
|
|
| Band-Aids | plastic bandages |
| Chapstick | lip balm |
| Jell-O | gelatin dessert |
| Kleenex | facial tissues |
| Q-Tips | cotton swabs |
| Scotch Tape | cellophane tape |
| Vaseline | petroleum jelly |
| Velcro | hook and loop fastener |
| Xerox | photocopier |
Tags: brand name, brand value, online video, YouTube
This entry was posted on Friday, June 19th, 2009 at 3:19 pm and is filed under Branding & Design, Online Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Leave a comment: