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.
Viral marketing can be thought of as a diffusion of information about the product and its adoption over the network. Primarily in social sciences there is a long history of the research on the influence of social networks on innovation and product diffusion. However, such studies have been typically limited to small networks and typically a single product or service. For example, Brown and Reingen @cite_36 interviewed the families of students being instructed by three piano teachers, in order to find out the network of referrals. They found that strong ties, those between family or friends, were more likely to be activated for information flow and were also more influential than weak ties @cite_22 between acquaintances. Similar observations were also made by DeBruyn and Lilien in @cite_2 in the context of electronic referrals. They found that characteristics of the social tie influenced recipients behavior but had different effects at different stages of decision making process: tie strength facilitates awareness, perceptual affinity triggers recipients interest, and demographic similarity had a negative influence on each stage of the decision-making process.
@cite_36 @cite_22 @cite_2
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Viral marketing takes advantage of preexisting social networks among customers to achieve large changes in behaviour. Models of influence spread have been studied in a number of domains, including the effect of "word of mouth" in the promotion of new products or the diffusion of technologies. A social network can be represented by a graph where the nodes are individuals and the edges indicate a form of social relationship. The flow of influence through this network can be thought of as an increasing process of active nodes: as individuals become aware of new technologies, they have the potential to pass them on to their neighbours. The goal of marketing is to trigger a large cascade of adoptions. In this paper, we develop a mathematical model that allows to analyze the dynamics of the cascading sequence of nodes switching to the new technology. To this end we describe a continuous-time and a discrete-time models and analyse the proportion of nodes that adopt the new technology over time. We consider the problem faced by a company that wants to use viral marketing to introduce a new product into a market where a competing product is already being introduced. We assume that consumers will use only one of the two products and will influence their friends in their decision of which product to use. We propose two models for the spread of influence of competing technologies through a social network and consider the influence maximization problem from the follower's perspective. In particular we assume the follower has a fixed budget available that can be used to target a subset of consumers and show that, although it is NP-hard to select the most influential subset to target, it is possible to give an efficient algorithm that is within 63 of optimal. Our computational experiments show that by using knowledge of the social network and the set of consumers targeted by the competitor, the follower may in fact capture a majority of the market by targeting a relatively small set of the right consumers. 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. The target of viral marketing on the platform of popular online social networks is to rapidly propagate marketing information at lower cost and increase sales, in which a key problem is how to precisely discover the most influential users in the process of information diffusion. A novel method is proposed in this paper for helping companies to identify such users as seeds to maximize information diffusion in the viral marketing. Firstly, the user trust network oriented to viral marketing and users’ combined interest degree in the network including isolated users are extensively defined. Next, we construct a model considering the time factor to simulate the process of information diffusion in viral marketing and propose a dynamic algorithm description. Finally, experiments are conducted with a real dataset extracted from the famous SNS website Epinions. The experimental results indicate that the proposed algorithm has better scalability and is less time-consuming. Compared with the classical model, the proposed algorithm achieved a better performance than does the classical method on the two aspects of network coverage rate and time-consumption in our four sub-datasets.