PROJECT REPORT

On

MARKETING RESEARCH ON YOUTUBE ADVERTISEMENT

By
KUMARAN R (1704010)
Belonging to

POST GRADUATE DIPLOMA IN MANAGEMENT

in
INTERNATIONAL BUSSINESS

Under The Guidance Of

Dr. PRARTHANA KUMAR

Institute of Public Enterprise

Shamirpet
Hyderabad
April – 2018
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my profound gratitude and deep regard to
my professor Dr. Prarthana Kumar, for her exemplary guidance, valuable feedback and
constant encouragement throughout the duration of the project. Her valuable suggestions
were of immense help throughout my project work. Her perceptive criticism kept me
working to make this project in a much better way. Working under her was an extremely
knowledgeable experience for me. I would also like to give my sincere gratitude to all the
friends and colleagues who filled in the survey, without which this research would be
incomplete.
 CHAPTER 1

1.1 INTRODUCTION
Not too long ago, YouTube was the undisputed king of online video. Founded in
February 2005, YouTube’s sole focus has always been video, thereby allowing it to rise (and
stay) at the top of the heap.

Two years after YouTube launched, it rolled out the advertising feature. Now, a decade
later, advertisers can choose from among six different ad formats. For better or worse, users
watching videos on YouTube expect some kind of advertising. It has become the norm.

On the other hand, Facebook went mainstream in 2006 and according to Animoto’s The
State of Social Video: Marketing in a Video-First World study of 1,000 consumers and 500
marketers, 60% of consumers watch branded video content daily on Facebook and 55%
report watching it on YouTube. Not surprisingly, 59% say they watch branded videos on
Instagram, which is pretty much an extension of Facebook at this point.
1.2 LITERATURE REVIEW
A video streaming website, YouTube, has gotten in the top three most visited websites
globally, along with Facebook and Google. The “broadcast yourself” idea became incredibly
popular and has taken over the world. There are years of video information stored in
YouTube’s database and constantly retrieved from it by everyone who has Internet access.
YouTube is not just a video storage website; it is a medium for information and a trendsetter
in every area of human lives.

The central idea of YouTube was people broadcasting their own personalities to others.
While it all was a novel concept once, right now, posting a video of oneself is regarded as a
new social norm. This especially concerns young people who need to show off to get
accepted by peers. A public video online serves as the proof of one’s capacities,
extraordinariness, and often of the mere existence.

Every minute, the total running time of all video materials uploaded is about 300 hours.
Those videos have different purposes which vary from education to entertainment,
promotion of ideas to mere trolling. YouTube plays a role of a public forum where, based
on the number of views, likes, and subscriptions, new celebrities emerge and new ideas are
popularized. Below are some examples of media stars who emerged thanks to YouTube.

There is a story of Brooke Brodack, a comedian who got her 18-months contract with
Carson Daly of NBC because her talent was noticed via her YouTube channel where 45
million people were watching her uploads. There is also the (in)famous Justin Bieber who
gained his popularity after his mother posted a video of his performance on YouTube in
2010. Or take Grumpy Cat, Tabatha Bundesen’s pet whose earnings topped the yearly
income of some Hollywood stars. These are just few examples of how social media like
YouTube can turn somebody into a celebrity after he or she gets noticed by the right people
(or millions of fans).

The existing stars benefit from the media too. Performing artists choose to publish their
singles on their channels or upload concert videos, in order to tease their fans into buying
records or tickets to their gigs. Besides, everyone can now record a video of an event with a
smartphone and upload it online. As a consequence, music publishers and recording
companies have become not as important as YouTube ratings.
 Apart from a star-making factory, YouTube has another purpose: promotion of ideas
and knowledge. There has been a rise of educational channels and those which bring science
to the masses. Vsauce, a popular YouTube channel known for exploring scientific issues
and explaining them in a simple language, has over 9 million of subscribers. Each of the
channel’s videos is watched several millions of times. Thanks to channels like this, more
young people these days are keeping up with the current scientific ideas, research, and
discoveries.

YouTube is also used by politicians to spread their messages and win the electorate.
Debates, promo speeches, and other campaign-related occasions are immediately uploaded
on YouTube. Comments to the videos serve as the chance to communicate with politicians
and their representatives. This has a reverse side too, as the audiences use YouTube to show
their irony towards politicians. Thus, a video mix of the smallest mistake made by a public
person on camera can spread like wildfire and harm the reputation in minutes.

YouTube has changed the way people receive visual information by becoming a
substitute to television for many. It is mainly free (there are paid channels too) and it is
always available. There is little advertising, and one can skip the ad with one click. However,
just like many people have shifted to Internet-based visual media to avoid irritating ads, a
lot of people have also been watching ads on YouTube. The new media has shifted people’s
attention from brands to shared ideas.

YouTube has become over its time of existence a powerful tool for promoting ideas,
messages, and images, creating memes and setting new trends. However, just as YouTube
can turn one into a celebrity and bring immediate success, it can also ruin one’s career in a
very short time. This is a part of the cost people pay for a possibility to shoot off instantly
and be on the tongues of men.
 CHAPTER 2

2.1 RESEARCH METHODOLOGY

2.1.1 Meaning of Research
Research is a common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. The Advance Learner’s Dictionary of
current English lays down the meaning of research as “A careful investigation or inquiry
specially through search for new facts in any branch of knowledge.” Redman and Mory
defines research as a ”Systematized efforts to gain new knowledge.” Some people consider
research as a movement, a movement to from the known to unknown. It is actually a voyage
of discovery. We possess the vital instinct of inquisitiveness for, when the unknown
confronts us, we wonder and our Inquisitiveness make us probe and attain full and fuller
understanding of the unknown.

2.1.2 Methodology
In planning and designing a specific research project, it is necessary to anticipate
all the steps that must be undertaken if the project is to be successful in collecting valid
and reliable information.

2.2 Sampling Technique

The type of sampling that was carried out was probability (convenience) sampling
due to limited resources available. In non-probability sampling, I have chosen RANDOM
sampling. Because this was best sampling method to do market survey. On the other
aspect, to cover all consumers in Ghaziabad was easy task.

Sample Size
The total number of these selected persons is called sample size. In this case, study
sample units are Eighty Two.
Sample Area

Sample area is Institute of Public Enterprise, Shamirpet

2.3 Scope
The scope of this project is to figure out the YouTube Advertisement impact on
viewers and how it affects their buying decision.

2.4 Need

The need of this project is to figure out the number of individuals who are watching
YouTube Ad and who has made decision of buying a product after watching the ad.

2.5 Objectives

 To study the people’s response on YouTube Ad .

 To study about the impact of YouTube Ad on People.
 To determine the consumer buying behaviour based on the ads.
.
2.6 Limitations

 Small Sample Size = in my sample survey I have taken a sample size of

82 responses, but only with these samples I can’t make a proper conclusion.
 Sample Area = the survey was conducted in the Institute of Public
Enterprise only, hence the study may not be useful for projection of
behavioural aspect of consumers living in other cities.
 Time Constraint = Time for this project is not sufficient. As I go for the
survey to each and every individual then time for completing and filling
the questionnaire is not sufficient.
 CHAPTER-3
3.1 RESULTS AND FINDINGS
Q1. Age

The study is made from the Students and faculties who belongs to different age groups. 89%
belong to the age group of 20-25 and 9.8% belong to the age group of 26-30 and 1.2% belong
to the age group 35-40.

Q2. Gender

The study is made from respondents consists of male and female. 78 % are male respondents
and 22% are female respondents.
Q3. Preferred way of consuming YouTube content

The study is made to know in which mode they preferred to watch YouTube. 84.1% are
preferred to watch in Mobile and 15.9% preferred to watch in computer.

Q4. How often do you watch YouTube Videos?

This study is done to know how much they are spending time on watching YouTube videos.
73.2% are daily youtuber and 8.5% are eat sleep youtube i.e 24/7 they will youtube videos
and 18.3% said they will watch rarely. We can see the no of person eatching youtube video
is significant this can be due to introduction of JIO also. Because of their entry many network
providers offering data packs in cheap rates which might have lead to the increase in
consumption.
Q5. How many times you encounter ads before watching the videos?

53.7% of the respondents have said that they have encoutere the ad all the time i.e when ever
they watch videos on YouTube, 40.2% have said some of the time they encounter ads and
6.1% respondents are using Ad Block extension to avoid the ads.

Q6. On encountering YouTube ads, what will you do?

87.8% respondents has said that they will end the video right there and 12.2% has said that
they will watch the ads.
Q7. What kind of advertisements do you see on YouTube?

71.4% of the respondents has said they have encountered pre roll ads i.e ads at the start of
the video and 28.6% have said they have encountered mid roll ads i.e ads in between the
videos.

Q8. Rate the rage level when ads interrupt your video

74.4% of the respondents said they will get anger like the movie character hulk and 25.6%
of the people said they will patiently wait for the ad to get over.
Q9. Will you bear the advertisement if it is for 5 or 10 seconds?

45.1% said they are not ready to watch the ads even if it is going to be 5 or 10 seconds ad,
40.2% of the respondents said if it is 5 or 10 seconds advertisements they will watch and
14.6% said they are okay with anything. They don’t give much attention to the duration of
the timing.

Q10. Are the suggested videos relevant to your interests? (Based upon
your recent search)

Now a days many websites and search engines have started collecting data about users
browsers history and ads are displayed based on that. This question is framed to understand
the kinds of ads displayed to the users.

67.1% of the respondents said that ads are irrelevant to their searches and 32.9% said that
that ads are relevant to their recent searches.
Q11. If it is an unskippable advertisement

67.1% have said that they will watch the video after the ad ends and 32.9% said they will
skip watching the video if the ad is unskippable.

Q12. The 5 second ad conveys the essence of the ad campaign

1- Disagree 5- Agree

25.6% has strongly agreed that 5sec ad conveys them essence i.e purpose of the ad. Equal
amount of percentage has agreed to the question. 29.3% has taken neutral chance that
they neither agree or disagree to the question. 6.1% has disagreed to the question and
13.4% has strongly disagreed that 5sec ad doesn’t convey the purpose of the ad
campaign.
 Q13. Which are more impactful?

50% of the respondents has accepted that 5 sec ads in YouTube are impactful. 31.7% has
accepted for 10 sec ads and 13.4% has voted for 30 seconds are impactful and 4.9% has said
5 mins ads are impactful. So on the average we can consider that people are feeling the ads
between 5-10 secs finds impactful. This information which is very important for
advertisements agents and companies also have to keep in mind while making ads.

Q14. Does the ad impact your buying descisions?

15.9% of them said that ads do impact their buying decisions and majority of 84.1% has said
that it doesn’t impact their buying decisions.
Q15. What do you look out for in an advertisement?

55.8% has said they look for product information in the ads, 45.5% of them said they will
look for discounts and sales, while 36.4% said that they will look for the brand they are
familiar and trust. 19.5% of them look for the interaction happening between them and ad
and 13% look for the celebrities and rest 1.3% look for nothing.

Q16. Which methods of online advertising are most influential on your

buying behaviour?
46.8% have said google ad is more influential, 36.4% has said facebook ads are influential,
35.1% has said YouTube is more influential and 28.6% has said mobile phone ads very
influential and 19.5% has said banner ads are influential and rest of them said twitter and
flash ads are influential.
 CHAPTER 4
4.1 ANALYSIS OF RESEARCH
1) Impact of buying decision based on gender

From this analysis we can understand that males are not affected by ads on youtube when
compared to females.

2) How often do you watch YouTube videos and how often you encounter
ads?

From the above analysis we an understand that in the age group of 20-25 there are many
people who watch youtube videos 24/7 and they encounter ads all the time, where as in the
same age group daily youtuber i.e who watches video daily but not all the time has
encountered ad some of the time only.
In the age group of 26-30 also there are many eat sleep youtube case. And most of them are
using ad block to avoid ads and next highest was daily youtuber who has encountered ads
all the time.
In the age group of above 35 there are daily youtuber and they have encountered ads some
of the time only.

3) Whether 5 sec ads conveys the essence of ad campaign and how much it
had affected their buying decision?

From this we can understand that 5 sec ad has changed their buying decision whereas 30 sec
doesn’t work out much. This might probably because of the option skip ad which is available
in the 30 secs ad. Most of the user has used that option so the ad doesn’t served the purpose.
 CHAPTER-5
5.1 CONCLUSION
From the results and data interpretation, it can be concluded that 89% of respondents
watch YouTube every day, 9.8% of respondents watch YouTube weekly. 84.1% of
respondents watch YouTube through Mobile phones and 15.9% of respondents use
Computer/Laptop to access YouTube. 53.7% of respondents have come across
advertisements while watching videos on YouTube and 6.1% is using adblock.

For this research questionnaire was prepared, for people between 20-40 years.
Researcher with the help of the questionnaire collected the primary data and found some
facts like most of the respondents see pre-roll advertisements on YouTube. Not only this,
researcher also found that 84.1% of respondents are not influenced by advertisements over
their buying behavior and according to 15.9% of respondents YouTube advertisements are
influential on their buying behavior.

The focus of the study was to determine the effect and behavior of people toward
YouTube advertisements. YouTube advertisements could influence determinants such as
unnecessary purchasing and also helps in enhancing knowledge. In today’s media oriented
society, almost everyone is bombarded continuously with advertising messages including
over hundreds advertisements every day, from television, radio, movies, Internet,
newspapers, magazines etc.
Bibliography:

1) April 2015, Measuring the impact of Online Video on Brand Metrics, (10). Retrieved from
https://www.thinkwithgoogle.com/articles/youtubeinsights-stats-data-trends-vol10.html How
much impact do YouTube ads make in business? Retrieved from https://www.quora.com/How-
much- impact-do-YouTubeads-make-in-business

2. Lauren Fisher (June 12, 2011), only 30% of YouTube Users Skip Pre-Roll Ads [Correction: 30% in
fact WATCH the ads]. Retrieved from http://thenextweb.com/socialmedia/2011/06/12/only-30-
of-youtube-users-skip-pre-roll-ads/#gref

3. Raksha J (August 11, 2014), YouTube Video influence 64% of consumers to make purchases!
Retrieved from http://dazeinfo.com/2014/08/11/youtube-videoinfluence-64-consumers-make-
purchases/

4. Market research questionnaire Retrieved from http://www.marketest.co.uk/market-

researchquestionnaire/247/advertising-methods
THE END
PRESENTED BY
KUMARAN R
PGDM-IB
1704010