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Mining Knowledge-Sharing Sites for Viral Marketing

Direct Marketing allows you to personalize and customize a message to different persons and groups at a specific time. The most popular forms are direct mail and e-mail marketing. Direct marketing is perhaps the most effective form of promotion because you have total control over what message you send, who receives the message, and when it is received. You can create general direct marketing pieces that go to a mass audience, such as an invitation, or specific marketing pieces that go to a target audience, such as a letter. Direct Mail Direct mail allows you to communicate with current and potential audiences. It can be used to. | Mining Knowledge-Sharing Sites for Viral Marketing Matthew Richardson and Pedro Domingos Department of Computer Science and Engineering University of Washington Box 352350 Seattle WA 98195-2350 mattr pedrod @cs.washington.edu ABSTRACT Viral marketing takes advantage of networks of influence among customers to inexpensively achieve large changes in behavior. Our research seeks to put it on a firmer footing by mining these networks from data building probabilistic models of them and using these models to choose the best viral marketing plan. Knowledge-sharing sites where customers review products and advise each other are a fertile source for this type of data mining. In this paper we extend our previous techniques achieving a large reduction in computational cost and apply them to data from a knowledge-sharing site. We optimize the amount of marketing funds spent on each customer rather than just making a binary decision on whether to market to him. We take into account the fact that knowledge of the network is partial and that gathering that knowledge can itself have a cost. Our results show the robustness and utility of our approach. Categories and Subject Descriptors H. 2.8 Database Management Database Applications - data mining I.2.6 Artificial Intelligence Learning - induction I.5.1 Pattern Recognition Models - statistical J.4 Computer Applications Social and Behavioral Sciences Keywords Probabilistic models linear models direct marketing viral marketing social networks knowledge sharing I. INTRODUCTION Marketing has been one of the major applications of data mining since the field emerged. Typically the decision of whether or not to market to a particular person is based solely on their characteristics direct marketing or those of the population segment to which they belong mass marketing . This often leads to sub-optimal marketing decisions by not taking into account the effect that members of a market have on each other s purchasing decisions. In many .