Money Spent (millions $) Figure 13 Views per $ spent vs Money given away in a video in the past 2 years (as of 04.03.2022) (2) It is worth noting that two of three $1M videos were uploaded in the past 3 months so comparing them to the videos which were out for up to 2 years may be misleading. It is likely that $1M videos have not reached their full potential yet so better comparison could be made in the future. Page 7 of 13 1.2 1.2

ME30403 Business Case Study CRITIQUE Finding the optimal giveaway amount MrBeast started making philanthropy videos in the early 2016, when he gave away two $15 dollar gift card to his followers. (2) That video brought only 27K views and the results were similar for the next two videos where he gave away $100. Jimmy took a gamble in his fourth philanthropy video where he donated $10K to a homeless person. The gamble did pay off as the video generated 9.9 million views as illustrated in Figure 14. At that moment Jimmy realised that bigger donations bring bigger views, so he continued giving away $10K to strangers on the streets and online and the videos kept bringing him millions of views.

The next Jimmys move was to increase donations even more, this time to $100K. He gave this money to his mother and received positive feedback as the video accumulated 28 million views. This was his record-breaking philanthropy video at a time, however it cost him 10 times more than his previous videos but brought only 1.5-2 times the amount of views. ) s n o i l l i m 110 100 90 ( s w e V i 80 70 r o 60 ) $ d n a s u o h t ( 50 40 30 t n e p S y e n o M 20 10 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 Video Number in chronological order Views (millions) Money Spent (thousand $) Figure 14 Video views vs Money given away in the first 50 philanthropy videos (as of 04.03.2022) (2) The big questions are: What sum of giveaway brings the most views? What sum of giveaway is the most cost-effective? Page 8 of 13

ME30403 Business Case Study MrBeastss first 50 philantropy videos have been analysed as each of them has been out on YouTube for at least 3 years. This makes the comparison between the videos relatively fair as the fast growth phase has already passed for all of them. Figure 15 shows that as the giveaway amount increases the views also rise but at a decreasing rate. The first peak is reached at $25K after which there is a sudden drop in the views. The viewership is regained again at $50K after which it continues to drop. MrBeast has not made any videos with donations above $100K within the analysed period. 100 80 ) s n o i l l i m 60 ( s w e V i 40 20 0 0 10 20 30 40 50 60 70 80 90 100 Money Spent (thousand $) Views (millions)