How do Social Media Entrepreneurs Monetize YouTube? A multiple case-study on eight YouTube channels, analyzing the various monetization strategies available. Bachelor Thesis within: Business Administration Number of Credits: 15 credits Program of Study: International Management Author: Artemis Katsimente & Ida-Maja Eldås Group Number: 52 Tutor: Thomas Cyron Examiner: Anders Melander Jönköping: 18th May 2020 2 Acknowledgments Hello everyone, welcome back to our YouTube channel We would like to give some special accreditation to individuals who supported and assisted us while conducting our thesis. Most importantly, we would like to thank each other for all the love and support given to each other during this period. We hope to continue our research on social media in the future. We would also give our gratitude to our fantastic tutor Thomas Cyron for showing immense interest in our research question and who triggered us to be the best version of ourselves. We, more than anything, want to thank our fellow graduating peers for giving excellent feedback and elevating our thesis to the next level. Moreover, the support received in our seminars by our opposing group is worth acknowledging as it made us confident in our results. Please smash the like button and subscribe to our channel for more content. 2 3 Abstract Background: Regarding previous literature, there has been much focus on Social Media in recent years. Researchers have elaborated on how social media platforms are tools for big companies or SMEs in terms of marketing and networking. Moreover, research shows how individuals can use social media as an entrepreneurial platform. The monetary success of individuals on online platforms has created a new generation of entrepreneurs. The possibility of monetization on social media is available to anyone, from which different strategies to reach monetization have emerged. Problem: There is substantial knowledge on how firms use social media as a tool, and research that supports the claim that entrepreneurs can achieve monetary gains of social media. Although related research exists, how social media entrepreneurs monetize digital platforms and the different means to do so has not been documented enough. Purpose: This paper aims to add knowledge and make clear that social media is not only a tool for companies, but that the monetizing features of social media are not as clear as the marketing and networking aspects. Thus, the research question “how do social media entrepreneurs monetize YouTube” was created. Method: A qualitative multiple-case study with direct-observations on social media platforms was desired, but it was limited to the platform YouTube, where eight channels, which are divided into movie review and makeup review content, were observed. The findings are interpreted with the existing knowledge the literature offers. Result: The monetization strategies a social media entrepreneur can apply through YouTube are advertisement, affiliate codes/links, collaborations, merchandise, crowdfunding, PR and, sponsorships. The subscriber relationship clarifies the different strategies of reaching monetization. Two types of strategies emerge from the data: the career-oriented and audience- oriented framework. Keywords: Social Media Entrepreneur; YouTube; Monitization 3 4 Table of Contents 1. Introduction ..................................................................................................................... 7 1.1 Background .................................................................................................................... 7 1.2 Problem ......................................................................................................................... 8 1.3 Purpose .......................................................................................................................... 8 1.4 Choice of Method ........................................................................................................... 9 1.5 Contribution ................................................................................................................... 9 1.6 Definitions ................................................................................................................... 10 2. Frame of References ....................................................................................................... 11 2.1 Literature Search Strategy .............................................................................................. 11 2.2 Social Media ................................................................................................................ 12 2.3 Social Media Entrepreneur ............................................................................................. 13 2.4 Monetization ................................................................................................................ 14 2.4.1 Sponsorship ............................................................................................................... 14 2.4.2 Advertisements (Ads) ................................................................................................. 15 2.4.3 Public Relations (PR) .................................................................................................. 16 2.4.4 Affiliate .................................................................................................................... 16 2.4.6 Crowdfunding ............................................................................................................ 17 2.5 YouTube Polices ........................................................................................................... 17 2.5.1 Legal Policy .............................................................................................................. 17 2.5.2 Spam and Deceptive Practices ...................................................................................... 18 2.5.3 Sensitive Content ....................................................................................................... 18 2.5.4 Violent or Dangerous Content ...................................................................................... 19 2.5.5 Regulated goods ......................................................................................................... 20 2.6 Customer-Oriented vs Business-Oriented Framework ........................................................ 20 3. Methodology .................................................................................................................. 20 3.1 Research Purpose .......................................................................................................... 20 3.2 Research Approach ....................................................................................................... 21 3.3 Research Paradigm ........................................................................................................ 21 3.4 Research Design ........................................................................................................... 22 3.5 Selection of Industry and Cases ...................................................................................... 22 3.6 Data Collection ............................................................................................................. 30 3.6.1 Empty Shell Table ...................................................................................................... 31 3.6.2 Direct Observation ..................................................................................................... 31 4 5 3.6.3 Archival Records ........................................................................................................ 31 3.6.4 Adaptive Strategies ..................................................................................................... 32 3.7 Data Analysis ............................................................................................................... 33 3.8 Research Ethics ............................................................................................................ 34 3.8.1 Credibility ................................................................................................................. 34 3.8.2 Transferability ........................................................................................................... 34 3.8.3 Dependability ............................................................................................................ 35 3.8.4 Confirmability ........................................................................................................... 35 3.8.5 Ethical Issues ............................................................................................................. 35 4. Findings ........................................................................................................................ 36 4.1 Within-Case Analysis .................................................................................................... 36 4.1.1 The Film Theorists ..................................................................................................... 36 4.1.2 Dylan is in Trouble ..................................................................................................... 37 4.1.3 Let me Explain ........................................................................................................... 39 4.1.4 FoundFlix .................................................................................................................