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The Dynamics of Viral Marketing Essay

  • Submitted by: keanutrinidad
  • on August 1, 2012
  • Category: History
  • Length: 19,974 words

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Below is an essay on "The Dynamics of Viral Marketing" from Anti Essays, your source for research papers, essays, and term paper examples.

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.



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...

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