TAILIEUCHUNG - The Dynamics of Viral Marketing ∗

Partnering with celebrities has been another critical element to the success of the YouthAIDS model. In order to deepen these partnerships, the YouthAIDS team has taken many trips into the field with celebrity ambassadors, corporate partners and individual donors. On these trips, the team not only promotes the work of YouthAIDS and PSI globally, but also highlights programming at the local level. By harnessing the power of celebrity, the YouthAIDS team attracts a large volume of local press and donor interest. These trips are capacity building sessions for local staff as they teach media and donor relations, thoughtful. | The Dynamics of Viral Marketing Jure Leskovec Machine Learning Department Carnegie Mellon University Pittsburgh PA Lada A. Adamic School of Information University of Michigan Ann Arbor MI Bernardo A. Huberman HP Labs Palo Alto CA 94304 April 20 2007 Abstract We present an analysis of a person-to-person recommendation network consisting of 4 million people who made 16 million recommendations on half a million products. We observe the propagation of recommendations and the cascade sizes which we explain by a simple stochastic model. We analyze how user behavior varies within user communities defined by a recommendation network. Product purchases follow a long tail where a significant share of purchases belongs to rarely sold items. We establish how the recommendation network grows over time and how effective it is from the viewpoint of the sender and receiver of the recommendations. While on average recommendations are not very effective at inducing purchases and do not spread very far we present a model that successfully identifies communities product and pricing categories for which viral marketing seems to be very effective. 1 Introduction With consumers showing increasing resistance to traditional forms of advertising such as TV or newspaper ads marketers have turned to alternate strategies including viral marketing. Viral marketing exploits existing social networks by encouraging customers to share product information with their friends. Previously a few in depth studies have shown that social networks affect the adoption of individual innovations and products for a review see Rog95 or SS98 . But until recently it has been difficult to measure how influential person-to-person recommendations actually are over a wide range of products. Moreover Subramani and Rajagopalan SR03 noted that there needs to be a greater understanding of the contexts in which viral marketing strategy works and the characteristics of products and services for which it is most This work .

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