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Early prediction of the outcome of Kickstarter campaigns: is the success due to virality?

Author

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  • Alex Kindler

    (The Hebrew University of Jerusalem)

  • Michael Golosovsky

    (The Hebrew University of Jerusalem)

  • Sorin Solomon

    (The Hebrew University of Jerusalem)

Abstract

The spread of information, opinions, preferences, and behavior across social media is a crucial feature of the current functioning of our economy, politics, and culture. One of the emerging channels for spreading social collective action and funding of novelty in all these domains is Crowdfunding on various platforms such as Kickstarter, Indiegogo, Sellaband, and may others. The exact spreading mechanism of this collective action is not well-understood. The general belief is that virality plays a crucial role. Namely, the common hypothesis is that the information or behavior propagates through individuals affecting one another, presumably, through the links connecting them in social networks. The aim of our study is to find out the actual spreading mechanism in one particular case: spread of financial support for individual Kickstarter campaigns. To our surprise, our studies show that “virality” plays here only a minor role. We used this result to construct a simple behavior-grounded stochastic predictor of the success of Kickstarter campaigns which is not based on the viral mechanism. The crucial feature of the model underlying the prediction algorithm is that the success of a campaign depends less on the backers influencing one another (“virality”) but rather on the campaign appealing to a particular class of high-pledge backers. This appeal is usually revealed at the very beginning of the campaign and it is an excellent success predictor. The case of Kickstarter is consistent with a recently proposed generic hypothesis that popularity in social media arises more from independent responses by individuals belonging to a large homophily class rather than from percolation, self-exciting processes, and other cooperative mechanisms resulting from mutual influence between individuals. Thus, the very concept of “virality”, which implies contagion between participating individuals, plays only a minor role in the success mechanism proposed hereby. A more appropriate term for the mechanism underlying the social success in our model could be “social appeal” or “social fitness”.

Suggested Citation

  • Alex Kindler & Michael Golosovsky & Sorin Solomon, 2019. "Early prediction of the outcome of Kickstarter campaigns: is the success due to virality?," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-6, December.
  • Handle: RePEc:pal:palcom:v:5:y:2019:i:1:d:10.1057_s41599-019-0261-6
    DOI: 10.1057/s41599-019-0261-6
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    References listed on IDEAS

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    1. Solomon, Sorin & Weisbuch, Gerard & de Arcangelis, Lucilla & Jan, Naeem & Stauffer, Dietrich, 2000. "Social percolation models," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 277(1), pages 239-247.
    2. Levy, Moshe & Levy, Haim & Solomon, Sorin, 1994. "A microscopic model of the stock market : Cycles, booms, and crashes," Economics Letters, Elsevier, vol. 45(1), pages 103-111, May.
    3. Rajagopal, 2014. "The Human Factors," Palgrave Macmillan Books, in: Architecting Enterprise, chapter 9, pages 225-249, Palgrave Macmillan.
    4. Solomon, Sorin & Richmond, Peter, 2001. "Power laws of wealth, market order volumes and market returns," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 188-197.
    5. Moshe Levy & Sorin Solomon, 1996. "Power Laws Are Logarithmic Boltzmann Laws," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 595-601.
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    Cited by:

    1. Wang, Wei & Guo, Lihuan & Wu, Yenchun Jim, 2022. "The merits of a sentiment analysis of antecedent comments for the prediction of online fundraising outcomes," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    2. Murat Kilinc & Can Aydin & Cigdem Tarhan, 2021. "Do Machine Learning and Business Analytics Approaches Answer the Question of ‘Will Your Kickstarter Project be Successful?," Istanbul Business Research, Istanbul University Business School, vol. 50(2), pages 255-274, November.

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