YouTube Tutorials and How They are Affecting the Make-up Economy
Haylie Hansen
As flawless contour and “on point” eyebrows become increasingly popular, many are flocking to the internet for tutorials on not only how to do their makeup, but also who to buy their make-up from. Makeup tutorials have been a huge trend lately, as social media encourages everyone to find the perfect look. The trend has gotten so large actually, that there are currently 9.8 billion make-up tutorials on YouTube alone, and this doesn’t include the blogs that are dedicated to similar topics (Marshall). Unsurprisingly, these ubiquitous makeup tutorials have a large effect on the economy.
In the past, the cosmetic world was ruled by large name brands such as Olay, Avon, Lancome, and more, however, since the recent obsession with makeup tutorials, specifically in the last 3 years, these name brand companies are starting to lose their monopoly(Goudreau). YouTubers who make makeup tutorials are usually promoting off brands that are cheaper, but just as effective. In the past people wouldn't sacrifice quality for price, however now they don’t have too. With other people experimenting for them, people can find out which brands have both high quality, and low prices, and those brands usually aren’t the name brands. The effect of this is not only the fall of large makeup producers, but also the rise of smaller companies.
Although YouTube it bringing a lot of large companies down, some companies are finding ways to use this new video tutorial trend to their advantage. For example, while Dove spends 58% of their time and money on brand owned channels, and the other 42% on user generated channels, they are only attraction 230 million views on youtube. However, other brands such as NYX only spend 0.5% of their time and money on brand owned channels, and rely on user generated content for the other 95.5%, and they receive a whopping 380 million views on youtube (Marshall). Even though NYX probably had a smaller budget, they ended up with more views and probably a larger budget surplus, making their income much larger than their spending.
The only large name brands that are thriving in this tutorial obsessed world, are those who have caught onto the trend. Companies that are paying youtubers to mention their brand in their videos, or companies that are changing their marketing techniques are the companies that will stick around. For example, Ulta realized that people no longer want to come in to a department store and have their makeup done, they would rather watch tutorials and do it themselves. So, they came up with a solution. Ulta implemented a self-service display in their stores to allow customers to try out their own makeup techniques that they learned on the internet (Hess).
In summary, YouTube tutorials are changing the makeup game, and the economy. Anyone can thrive, it is just a matter of who knows the most most famous makeup blogger.
Works Cited
Goudreau, Jenna. "Top 10 Global Beauty Brands." Forbes. Forbes Magazine, 20 Apr. 2012. Web. 13 Sept. 2016.
Hess, Dan. "Why Some Retail Brands Struggle To Remain Relevant As Others Thrive." Forbes. Forbes, 3 June 2015. Web. 13 Sept. 2016.
Marshall, Carla. "YouTube & the Beauty Industry: Brands Are Getting Crushed." Tubular Insights. Tubular Insights, 28 Mar. 2016. Web. 13 Sept. 2016.
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I, as a teenage girl, can highly relate to this post due to the fact that I have watched these tutorials and turned to the cheaper, drugstore materials that work just as well as any high end brand to fit my budget. I found it interesting how due to something that probably started very small, large and popular makeup companies are losing business to smaller companies. These makeup tutorials have truly made a huge impact in the economic stance of some companies by bringing these smaller companies up to compete with brands like MAC. When I think about this, I wonder if large companies will try to compete with the smaller companies by lowering prices or buying out the youtubers to express their brand?
ReplyDeletePersonally, I have been watching makeup tutorials before they were “in” and I think your piece brings up some interesting points. I have noticed more and more makeup tutorials circling around YouTube and other social media platforms, and it definitely makes finding them a lot easier. They do open your eyes to a lot more products and brands, but it still surprises me that widely known name brands are losing their monopoly. Even though they might not be used as much anymore, I feel as though they would still be getting some attention from the rising popularity of tutorials that would keep people buying from them.
ReplyDeleteAs a person who watches a lot of Youtube videos, it’s fascinating that youtubers such as NikkieTutorials and Jeffree Star have millions of subscribers for their makeup tutorials. Through this, not only (like you said) do they show reviews of cheap and good quality makeup, but they are also able to promote their own brand. Jeffree Star Cosmetics and Too Faced are now growing because they have so much publicity because of their Youtube channels. Most of their products are sold out. More consumers want what they sell and one of the major reasons is the promotion made through Youtube. By doing this, these cosmetic brands are able to create cheap and good quality formulas while also reaching an audience/consumers of millions. So you bring up a really good point on how Youtube has influenced this industry.
ReplyDeleteIt was interesting to read your piece and see how economics effects everyday activities like doing make-up. While I was reading your post, I found it fascinating how once Ulta and other make-up businesses noticed that YouTubers were creating make-up tutorials and how popular these videos and YouTubers were becoming, some make-up companies adapted to the wants of the consumer (the people watching these make-up tutorials) and geared their businesses towards promoting the famous make-up tutorials and providing self-service displays at their stores. Since these businesses noticed a change in the consumers' desires for make-up products and the new online tutorial craze, the businesses that ended up successful in the make-up industry were the ones who met the needs and wants of their consumers by promoting self-service make-up and even promoting YouTube stars. The make-up magazine "Allure" discussed how YouTuber Jackie Aina was teaming up with BOMB (black-owned makeup brands) to support her cause and the make-up businesses she was working with. Your statement at the end of your piece was so true; the businesses that want to stay alive in this competition are the ones who will meet the demands of the consumer and keep up with the latest trends.
ReplyDeleteMe being apart of the makeup world that watches all these videos on a daily rate, the popularity has risen to extremes. From watching videos on this stuff for years, even just being a simple fan, more and more people have been getting into the makeup world as beauty gurus and reviewers and getting paid for it. How popular brands like Urban Decay and Two Faced, they have more interest in people rather than Lancome or Olay. People like watching normal people just like themselves do creations with makeup giving it more interest rather than watching a video directly from the brand's youtube. The popularity has risen from sponsors and the brands having well known beauty gurus try out their products on camera and have the item increase in popularity, but along with this the non name brand products have been taking over, because personally if they work the same, then whatever price is cheaper is the one that is going to sell more. Me being one of the girls who watches these videos, highly agree and understand why makeup videos have been affecting the economy and high makeup brands and well done on making this post be super interesting and overall eye catching, especially for makeup fans.
ReplyDeleteI found this post incredibly entertaining and informative to read. It’s really incredible to see how far Youtube tutorials are coming in the scheme of things, especially since I, personally, don’t watch them, and they still show up in my recommendations. I agree with all the main points on this -- and the points you brought to the table were informative and unique. Although personally I feel that if I was watching these sorts of videos, and came to look at different products, only to find the channel sponsored by a big brand and only showing off those, it would be disappointing. However, the idea of sponsorships isn’t a new one, but it just doesn’t seem the same as a quick advertisement in the middle of the video rather than what the whole video is about. It would be interesting to gather further information on a couple other questions, though. As the community of tutorials grows, will larger companies resort to just ‘out-bidding’ smaller companies for which channels they can showcase their products on? And will this just end up like the other parts of Youtube, with one channel/big brand dominating it all?
ReplyDeleteI never really considered just how much makeup tutorials would affect the economy. While I knew that they were becoming increasingly popular, I didn’t consider how they are putting well known companies to shame. I found it interesting how a hobby like this can have such an effect on the economy of the cosmetic world and how it can cause brand name companies to actually worry. There have been times where I have spent a lot of money on brand name cosmetics, only to find out that I was not happy with the product. In instances like this, I would benefit from the makeup tutorials. I would be able to watch other people test out the cheaper product first, then I would purchase it for $15 or less and see if I was pleased. It will be interesting to see how larger companies such as Lancome and MAC rebound from the trend that is decreasing their business. This post has me wondering if cheaper, less popular brands such as Elf will become as popular as, say, Olay.
ReplyDeleteReading through this gave me a completely different perspective on how the outlook of doing make-up have changed in recent years. Looking at the growing make-up industry, and the growing technology allowing people to post about makeup, it's clear that people are worrying less about getting their makeup or hair professionally done and more about how they can save money, use off brands, and do it themselves. Also, looking at these tutorials that are being put out, it is much easier to weed out companies that put out products that don't work well or aren't worth buying. With an almost exponential rise in the usage of computers to generate revenue, business is booming with ways to either seek advice online or promote, sell, or give an opinion on a product. The only downfall I see with the entirety of makeup tutorials becoming more popular is that in later years there may be no use for makeup desks in department stores and many people, women specifically, will lose jobs. If there is more availability to do professional style makeup at home, less and less people will be going to a counter at a store to get theirs done for more money.
ReplyDeleteI thought that this article was very interesting because I’ve never thought of makeup tutorials changing the economy. I have seen these tutorials and I understand how they can take such a strong stand point, due to the fact that they are so widely popular. This article also made me realize how much a youtube “star” could actually be making if companies like Olay and Ulta are willing to pay just to have you suggest their products in videos.
ReplyDeleteIt was interesting to read your piece and to see how economics can effect something like this. Also while reading this it gave me a different perspective on the topic. Personally I have watched makeup tutorials in the past and agree with what you’ve said. I was however surprised that the larger makeup companies have been decreasing in sales while more of the drug store brands have been increasing in their sales. I was also surprised that stores like Ulta implemented a self-service station, but I can see why they did that because the makeup tutorials are so popular on Youtube. With stores doing that, it might help to increase some of the more larger brand names since people are able to do it to themselves first before buying the product.
ReplyDeleteAs well as helping other companies, i've personally seen many videos slandering and besmirching companies such as Kylie Jenner's line and Jeffrey Star's. The media definitely does impact our views on these particular lines. And i agree with you that our makeup skills have been revolutionized. Instead of going to your local drug store for makeup, it is more common for one to go to Ulta. This is a more expense choice but it becoming the social norm. And it is scene as more desirable because of these videos and media coverage.
ReplyDeleteThis was an interesting perspective that you brought with this entry because we can all relate to it. Instagram, Facebook or Youtube videos have quick tutorials on how to do your makeup efficiently and make it look good. The only difference I noticed, though, is that the brands I see that are commonly advertised are the most expensive ones like Urban Decay or Tarte. This isn’t really cost effective marketing because most people don’t care to pay $40 for a simple palette. However, I agree that if they use more basic products and they look good, people will want to buy and that is effective for the business it is representing.
ReplyDeleteIt is interesting to see how something such as makeup can impact the entire economy. We all know people who watch makeup tutorials, or are considered very good at makeup, but you never think of it from a money standpoint. While it might be a beneficial thing in terms of the girls being influenced to buy certain brands of makeup since the companies and stores will make a profit in revenue, I could also see it being a negative thing. As girls become more involved with the social media aspect of beauty products, it is easy to see how things could turn around and become harsh as critiques of their makeup techniques, appearance, brands, etc. begin to take place. However, the videos might allow you to find your passion and some might make a career out of it. According to https://www.statista.com/topics/1008/cosmetics-industry/, the US has the biggest makeup industry in the world and about 17.3 billion dollars was generated in cosmetic sales. So while it might be hard to gain approval and become the best, it is clear that the economy is thriving from these individuals and you were right to say that this is indeed an interesting topic. I think it was smart of you to bring this to public attention since nowadays it is such a large trend.
ReplyDeleteI agree that make-up tutorials are taking over the Internet, especially YouTube. I have also been noticing that make-up tutorials or how to have the perfect makeup is popular on all social media pages now, including Pinterest, Instagram, and Twitter. A lot of people on Instagram are being paid to wear name brand makeup and sponsor these brands. It’s interesting to see the new ways people are able to work and receive money. I’ve noticed that younger age groups are starting to become more involved with technology--this was noted when my fourth grade cousin was teaching me how to upload a video on YouTube--with these younger generations becoming more involved with social media, things like make-up tutorials become more popular. It’s no surprise that the social media world is evolving. It will be interesting to see the next big thing trending in a couple years. As for now, I definitely wouldn’t mind being paid to tell people what kind of makeup to buy, I don’t know about you.
ReplyDeleteThis article really made it apparent on how many people actually watch YouTube make-up tutorials and why. I can see now that the people who made the videos, are actually advertising for companies without even knowing it. Brand name companies are probably getting upset that these young YouTubers are using cheaper brands and not their expensive products. But, the people who are advertising for more expensive products, still get many viewers because there are people out there who don't care about how much money it is, as long it has good quality. Another point to be made is that the girls or boys or whoever is doing the tutorial, could become famous from just these videos. If they get enough viewers and likes, they could potentially become someone famous, and then people would spend money to see them, or start sending them gifts. This is just another way for people to become famous from something so little. It reminds me of Vine. Guys and girls make dumb videos that somehow make people laugh, and if they're attractive, they become someone famous. Personally, I think this is something stupid because they didn't really do anything important. In conclusion, the make-up tutorial idea is good for people who want a quick lesson on how to do a specific part of make-up, or maybe even an in depth tutorial on how to do all parts of applying make-up.
ReplyDeleteThis was a very unique and interesting topic to read about as I have never thought Youtube makeup tutorials would have an effect on the economy. I have never really watched a makeup tutorial but now I’m kind of curious to see what all the fuss is about. They must be pretty great if these big brands are losing customers to them. I suppose another reason some of their sales are dropping is due to the fact that less people are watching normal cable TV where they see commercials for these makeup brands, and more are watching Netflix which is free of advertisements. Personally, I know on the rare occasion that I watch cable it’s off of a pre-recorded show where I fast forward through the commercials. If I am watching TV and commercials do come on, I normally turn to my phone out of boredom anyways. If I were these bigger brand makeup companies I would definitely get more popular on the internet and Youtube, and revise our advertising strategies since that’s where this generation of successful makeup companies are headed.
ReplyDeleteThis piece was very interesting to read, I would never have thought that a make-up tutorial on Youtube would have any effect on the economy. I thought it was interesting how NYX has a smaller budget and doesn’t put forth as much effort as Dove does and are making a better profit. This makes me wonder if it isn’t worth all the advertising Dove is doing to try to increase their profit. However it is very clear that brands that are well liked by the beauty Youtubers, seems to sell the most. This makes me wonder what the companies that are lagging will do to compete with these brands that are so highly favored?
ReplyDeleteThis post is incredible, and I find it interesting because not everyone pay attention to what’s affecting the economy nowadays, and if they did it would be probably teenagers who are obsessed with makeup . In my own opinion I feel like everyone doesn’t care about what’s happening around them even this little things that nobody would ever thought of, but yes it does impact our economy. I watch makeup tutorial videos every week just to see what’s new but I never really thought about how it could affect the economy. It’s little things that people don’t see. Also reading your piece I realized that the YouTube is bringing companies down and they are just going out to find other ways to keep their companies up. Although going in the store can help expand the brand names.
ReplyDeleteIt was very interesting to read about the correlation between YouTubers Make-Up tutorials and how that is affecting the make-up market. Personally, I have noticed the trend of the tutorial videos and different make-up trends that come about in culture. I think it would’ve been interesting to see how other social media platforms also enhance the business because another trend is the short Instagram tutorials. I very much enjoyed how you also pointed out that many YouTubers try cheaper drugstore versions and how they give a similar effect as the expensive ones. It was very surprising to see how some of the big name brands sales are decreasing because they aren’t promoting the same way as others.
ReplyDeleteThis was very interesting to read about. It's surprising how just a make-up tutorial video in youtube could change economy drastically. It's incredible what the internet has done to widen the market space in so many ways. This demonstrates digital revolution.The industrial revolution jump started our economy. Now we're entering into the digital revolution where this will really change our economy. Youtubers advertise some products without even realizing that they are representing some of the beauty products, and also youtubers get paid to represent some products that are new to the market or need some attention. So, overall it's crazy how makeup could change economy.
ReplyDeleteI think it's incredible that even over the past few years alone, YouTube has grown into such this huge platform. Particularly for smaller makeup companies, like you mentioned, this idea of free advertising on YouTube has attributed tremendously to their success. We usually we have this mindset that "more expensive means better quality", but in this situation you proved that this isn't always the case. It emphasizes that these less-known brands are really competitive substitutes for name-brands. Especially for younger generations that don't have as much spending money, YouTube assures consumers they are not worse off for buying cheaper products. I'd be interested to see if/how much the demand of products for these smaller companies increase as time progresses.
ReplyDeleteI thought I was the only one that noticed makeup tutorials were gaining more popularity/interest lately. I was really intrigued after I read your title since I especially, love watching makeup tutorials in my free-time and using techniques I gain from those videos and using them on myself. I found this article very interesting, although one thing I couldn’t agree on was the fact that you said beauty gurus are using off-brand/cheaper cosmetics in their videos. I’ve seen lots of makeup tutorials and in all of them, they are usually using high quality expensive makeup from sephora. Although, you could be right and I could’ve just been missing out on those off-brand makeup tutorials which makes me really interested because now I want to watch those tutorials and buy some makeup that is cheap and high quality, instead of buying a $30 bronzer by “Too Faced”. Overall, this article made me realize how makeup industries really do make a big impact on our economy.
ReplyDeleteAs an every girl in our modern society, I am also the one who gets attracted to these fascinating make up YouTube videos. The only thing it strikes me is that the Youtubers make the videos really addictive which results the steep increase in views. Like you said, almost every single makeup video shows the cheapest products that is efficient and reasonable for everyone. I say there is one element that is changing the makeup economy, which is the "Technology". The availability of creating free websites and videos (in YouTube) can be done painlessly through the booming technology. Let's a beautician creates a youtube video and links her website to the video(to buy the products), many consumers/viewers would directly click the website and buy the products. As the same way, if we time travel 6 years back (2010), probably there were few people who made makeup youtube videos. If we create a PPC chart of 2010(no of youtube videos vs no of beauty products) the graph certainly moved rightward or increased due to the fact of technology. Overall it is really interesting that people are utilizing the technology for producing beauty products.
ReplyDeleteEven though I’m not a person to watch these types of videos, I do spend a lot of time on Youtube and I’ve noticed this trend with not just makeup, but every type of product you can think of. It’s amazing that so many people can have a following just because they demonstrate a new way to put on eyeliner, but yet it happens. Lots of smaller companies have caught on to this trend quicker than the large ones have, and I’m pretty sure they had to make some new rules on how companies would be allowed to advertise their products through sponsorships. Even if they aren’t sponsored, both the Youtubers and companies can gain from the popularity of these internet celebrities.
ReplyDeleteAs someone who uses the aforementioned tutorials, and have changed my makeup buying habits accordingly, I can definitely see the waves this youtube movement is making. While my mom has a drawer of Avon and Lancome, my makeup is made up of brands like Nyx and E.L.F., because that’s what I learned while watching the videos. However, i’ve never thought of it in a broader context. The makeup market has become a sink or swim industry, and they have to play their cards right in order to win. It’s not about company run content and ads anymore, which is an interesting shift in the consumer world. For years and years, commercials dictated consumption, but, now consumers want to see people they know and trust promoting products; not some random face on a T.V. screen. Your post summed all of this up well, and really demonstrated the shift in a huge industry in America. To add to your brands, I’d also say that Korean makeup and skincare has made a huge impact on America’s beauty habits. Whether or not these youtube tutorials are all a trend is hard to say, but I know i’ll continue to buy products I see reviewed via youtube tutorials.
ReplyDeleteI agree with this statement one hundred percent, I can believe that YouTubers would be able to generate more buyers to a makeup brand just by having people watch their videos. The more subscribers, the more views, and if you were to mention a brand's name and say you like their product, that company is likely to get a surplus of buyers. I've noticed lately as well that companies are starting to stay clear of the old "come in and have your makeup done here" trend, and a leaning more towards come in and do it yourself, which can beg the question are we helping or hurting the business - people lose jobs when they don't have anything to do, or their part of a company is no longer in service. We could be raising the unemployment rate, while helping a company make more money.
ReplyDeleteI think you have a really good point overall about YouTube tutorials and reviews convincing consumers to buy lower priced products and “dupes” for higher end makeup. However, there are also certain mid to high priced makeup brands that have done very well because of social media platforms, especially celebrity makeup lines. For example, Kylie Jenner’s company, Kylie Cosmetics, almost instantaneously sells out of every installment of her Kylie Lip Kit. Part of the reason of her astronomical success is her popularity on social media and reality television. Even on YouTube, trials and reviews of her lip kits increase the demand for them even more. Her company is able to be incredibly successful not because of the actual products, but because people she has capitalized on her status as a social media icon. Social media is definitely an important factor in what products are seen and wanted by consumers.
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ReplyDeleteFrom a guy's perspective I never really noticed and thought that there were so many different kinds of makeup and that people care so much about it. I think that the larger companies should pay the youtubers to review and promote there product. I don’t really know about makeup and what the differences are, but aren’t mostly the same? Do you think that this type of product and trend is going to continue growing or fade away? Overall, I thought it was very well organized and thought out.
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ReplyDeleteThis was a very interesting topic to read about because I never really realized the true effect that the make-up tutorials were having. I have never truly sat down to watch one but now I am curious to see what all the hype is about. Something that really stood out to me is that these tutorials actually have a direct relationship with the economy. By using and talking about the products in each video, it is clear that certain products are being marketed in way that makes people want to go out and purchase them. Given that there are over 9.8 billion make-up tutorials on the internet, there is no doubt that people are watching them eventually to go out and purchase the types make-up used in the video. With this number being so large, there are various products that are being used which means that make-up companies are gaining much more consumers to buy their products, ultimately giving them more money. Another thing about this that I found interesting was how most people used to be intrigued to buy make-up from seeing things such as adds on TV. Now a days, many households have Netflix which makes it difficult to see this marketing. However, I think that with the staggering amount of popularity that has grown from the tutorials, companies are much better off having their products marketed from within the tutorials. Overall, if it was my company, I would want my products to be advertised on the internet.
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ReplyDeleteThis actually makes a lot of sense because when makeup tutorials come on the television or appear on billboards, I generally ignore them or tune them out. But when watching a makeup tutorial, you freely choose to watch it, showing your interest in makeup, which you then learn more about these other makeup brands. In the past couple years YouTube has increasingly gotten popular with more and more channels and views. When people watch these videos, they have a sense of trust because they’re doing the tutorial on their own to show others, unlike some tv ads that have professionals do it specifically for marketing purposes. So the viewer is more apt to try out the product for themselves when they watch these tutorials. The makeup brands that choose to advertise with personal YouTube channels are now shifting their strategies to a more interested audience, while also getting good, personal reviews on their products.
ReplyDeleteAs a person that loves doing makeup, I could definitely relate to this topic. I follow so many makeup blogs on Instagram and constantly watch the short tutorials they post. Another thing that is really helping the economy are the YouTubers that actually stick to what they believe in and don't advertise items that aren't really as good as they say. I believe that those YouTubers have made the most money and also in return helped the most girls find the best products. As soon as someone uses products after watching a makeup tutorial with items advertised only for the money, they'll stop watching that YouTuber and soon everyone else will follow. Overall I love this trend and I love that women trying to express themselves is helping the economy. Lastly, along with makeup Youtubers mentioning the best products and inspiring people that way, they're also inspiring people to go out and purchase new items simply by showing them how to use them. All in all, this trend has been so popular lately and I hope the makeup industry continues to grow from it, as well as the economy.
ReplyDeleteThis a very unique twist on economics. Personally, I would never think of connecting YouTube tutorial videos to the economy. Everything you stated though is completely true. Makeup tutorials are showing up not only on YouTube, but all over every branch of social media. People are becoming internet famous for their videos on how to put on makeup. I was very interested while reading your blog because I never knew that high name companies would pay, or sponsor, YouTube videos for extra publicity. YouTube and social media is a booming economic market, because almost everyone uses it. Companies are probably better off paying big name internet stars to advertise for them rather than spending the time and money on making their own ads. I was surprised to hear of how much money Dove spends on their advertising even though they ads are not helping their income incredibly. This trend is very apparent with not only makeup, but almost any other product available to consumers. If companies are able to connect with the most viewed YouTubers, their economic growth could increase substantially because of how popular tutorial videos are today.
ReplyDeleteThis actually makes a lot of sense because when makeup tutorials come on the television or appear on billboards, I generally ignore them or tune them out. But when watching a makeup tutorial, you freely choose to watch it, showing your interest in makeup, which you then learn more about these other makeup brands. In the past couple years YouTube has increasingly gotten popular with more and more channels and views. When people watch these videos, they have a sense of trust because they’re doing the tutorial on their own to show others, unlike some tv ads that have professionals do it specifically for marketing purposes. So the viewer is more apt to try out the product for themselves when they watch these tutorials. The makeup brands that choose to advertise with personal YouTube channels are now shifting their strategies to a more interested audience, while also getting good, personal reviews on their products.
ReplyDeleteI enjoy how youtube can be used as a way to achieve that american dream.. do what you want, work hard, and you’ll make it. As in every capitalist economy there is competition but our system does seem to be constantly run by the name brands or big companies that only mildly compete with each other. Your post is perfect in displaying this idea that youtube is societies new way of shopping in a way. The small companies get a chance because they are put to the test against the big. I would’ve liked to see how much it costs these companies to sponsor youtubers because that would likely be a surprising figure, but either way this is a solid article. Great work!
ReplyDeleteThis a very unique twist on economics. Personally, I would never think of connecting YouTube tutorial videos to the economy. Everything you stated though is completely true. Makeup tutorials are showing up not only on YouTube, but all over every branch of social media. People are becoming internet famous for their videos on how to put on makeup. I was very interested while reading your blog because I never knew that high name companies would pay, or sponsor, YouTube videos for extra publicity. YouTube and social media is a booming economic market, because almost everyone uses it. Companies are probably better off paying big name internet stars to advertise for them rather than spending the time and money on making their own ads. I was surprised to hear of how much money Dove spends on their advertising even though they ads are not helping their income incredibly. This trend is very apparent with not only makeup, but almost any other product available to consumers. If companies are able to connect with the most viewed YouTubers, their economic growth could increase substantially because of how popular tutorial videos are today.
ReplyDeleteI never thought that youtube tutorials could significantly decrease the value of companies in that industry, but I suppose that that’s the case for many companies who don’t catch on to the new fad. It’s interesting to observe a phenomena like this - a new innovation occurs, and the businesses that survive pounce on the opportunity, while those who are late to the show end up failing. It seems like a recurring theme throughout American economics; for example, copious amounts of newspapers are failing or fighting to stay alive due to the prevalence of internet news. They haven’t come up with a way to take advantage of the situation yet, much like the makeup companies, and this is a really interesting, new perspective on that.
ReplyDeletePersonally, I'm not all that fascinated by makeup, but I still know exactly the look you're describing because it's everywhere online. Youtube is not the only social media platform promoting this new look, there are also plenty of 6-30 second videos to be found on Instagram and Twitter of girls just moving their faces around, showing off their immaculate makeup. This trend is huge, and companies that don't join such bandwagons are doomed. Clearly, NYX knows what they're doing, and the trade-off of paying Youtubers to use their products in videos in exchange for publicity is obviously paying off. I don't think all makeup companies realize what a huge loss it could be if they don't get in on this trend, as viewers are shown consistently that the handful of brands that pay youtubers work well. If viewers have proof that one brand works, and is being sold at a reasonable price, why would they buy another one? In a world that is constantly changing due to the widespread use of technology, it is imperative that companies keep up with major trends.
ReplyDeleteIt is interesting to see how the internet allows individuals to influence the actions of large companies. In the past make-up companies would not have paid any attention to their consumers and only focused on their bottom line. Now Youtube has given these companies the chance to do better for themselves and their consumers. Indeed it seems like the opportunity cost is too high for these companies to risk not taking advantage of this new form of advertising. It also raises the question of what will be the next product to follow this trend. Maybe soon electronics or fashion companies will have to put more of their advertising money into Youtube just to keep up.
ReplyDeleteI think that it's interesting that youtube and the internet are have such a large affect on the makeup company. People on youtube promote the cheaper brands so that is causing the bigger companies to lose consumers because people realize that even though the makeup is cheaper it does the same thing that the more expensive brands of makeup can do. I believe that makeup tutorials have made a huge impact on the economy and it is causing girls to not want to buy the more expensive and older products and is causing them to become obsolete. I can relate because I have watched makeup tutorials and it makes me realize that I can buy cheaper products instead of the more expensive brands.
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