WHAT IS IT?: More and more businesses are using YouTube in the form of contests and video distribution to generate marketing awareness. From big names to no names, YouTube appears to democratize marketing with low budget, world wide distribution.
WHAT DOES IT MEAN TO MY BUSINESS?: Done right, YouTube can be used as a powerful tool to build awareness for your company.
PROS: YouTube is no doubt a revolutionary distribution medium for video messaging as long as the message, product, or service just is as remarkable.
CONS: In a YouTube contest, entries can be far from what you had hoped to receive. Not only could it be irrelevant, it could be negative. And when it is negative, it’s even worse to remove those videos in our world of transparency. Also, it takes time and resources to sift through all of them. In addition, for most corporations there is also a huge marketing cost behind the grass roots videos on YouTube.
THE BOTTOM LINE: Due to the large budget to properly promote contests on YouTube and the resources to manage them and filter through submissions it sometimes is may not be worth the budget and effort to conduct a video contest on YouTube. On the other hand, if you produce a remarkable video, one that truly has people talking, then YouTube’s ability to inexpensively distribute your message worldwide is truly revolutionary. If you have a remarkable message, product, or service, YouTube away. Otherwise, it may not be the best place for Web 2.0 marketing.
YouTube strategy gone BAD:

“Heinz has said it will pick five of the entries and show them on television, though it has not committed to a channel or a time slot. One winner will get $57,000. But so far it’s safe to say that none of the entries has quite the resonance of, say, the classic Carly Simon “Anticipation” ad where the ketchup creeps oh-so-slowly out of the bottle” Source
YouTube strategy gone GOOD:

The “Here It Goes Again,” video debuted on YouTube on July 31, 2006 and, as of July 1, 2007, has been viewed over 19 million times making it the sixth most viewed video on the website of all time. It premiered on VH1’s Top 20 Countdown that same day. OK Go performed the dance routine live at the 2006 MTV Video Music Awards. The music video won the 2007 Grammy Award for Best Short Form Music Video and the 2006 YouTube awards for Most Creative Video. Source
LINKS WORTH YOUR TIME: