Businesses tap YouTube as marketing tool

An online peer-to-peer (P2P) currency exchange is the latest company to attempt to harness the marketing power of YouTube by offering $10,000 for budding film-makers to create a short advert for the company and post it on the video-sharing website.

FxA World is offering the prize money to the best short video that promotes the company and its values, and is asking people to post their entries on YouTube.

FxA World allows its members to trade currency directly with each other online and to set their own exchange rates, effectively cutting out the banks and broker middlemen. It can be used by businesses trading with customers and suppliers in different countries or individuals, for example, buying property overseas.

The guidelines for entries are simple with the rules stating that videos must be no longer than 45 seconds, represent FXA World "values" such as 'exchange', 'currency', 'experience', 'innovation', 'vision' and 'peer to peer' - and contain no profanity, nudity or political statements.

Mahesh Ramachandran, non-executive director at FxA World told silicon.com the aim of the competition is to get some innovative and creative short adverts that the company can actually use in future.

Ramachandran said: "We are primarily a P2P business using the power of the internet. When we looked at the concept of YouTube bringing users together it is conceptually the same values. If you look at the value proposition of our business it's about how we eliminate the middleman and our strategy is in line with that."

Although the final decision will be made by FxA World judges on 1 June 2007, the company says the popularity of the video on YouTube will be a "critical factor for success", along with the aesthetic quality of the film and how well it conveys the key values of the company.

Ramachandran predicted more businesses will go down this route and experiment with web 2.0 technologies and user-generated content. "What we are doing will become more mainstream and more companies will go this way," he said.

While the competition, which is open to all comers, may attract some creative entries promoting the company's brand and values, there is also the risk of others creating offensive or spoof videos.

Ramachandran claimed there is "no such thing as bad publicity" but said the company would ask for YouTube's help in taking down any videos that are offensive or political.

The viral marketing possibilities of YouTube haven't escaped the big multinational corporations either with the likes of MTV, Nike and Warner Bros posting short commercials. Nike's clip of Brazilian footballer Ronaldinho in a new pair of trainers spread around the world as consumers emailed the video to their friends.

In another example US airline Southwest is using YouTube for a competition asking people to post a short clip of something embarrassing or humiliating happening to them, with the winning video to be used in Southwest's official "Wanna Get Away" campaign.