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Vision Statement                                                      Sinan Aral is an assistant professor and Dylan Walker is a research
                                                                      scientist at New York University’s Stern School of Business. This
                                                                      research is drawn from a paper forthcoming in Management Science.




                                                    BLUE              RED                        LIGHT BLUE              GRAY
MAPPING ADOPTION OF                                 INITIAL ADOPTER   2ND-TIER                   3RD-TIER ADOPTER        OTHER PEOPLE IN
                                                                      ADOPTER                    (REFERRED BY            ADOPTERS’ SOCIAL
ONE PRODUCT…                                                          (REFERRED BY AN            A 2ND-TIER              NETWORKS
                                                                      INITIAL ADOPTER)           ADOPTER)




                                 …WHEN THE PRODUCT HAS                                               …WHEN THE PRODUCT HAS
                                 NO VIRAL FEATURES                                                   PASSIVE VIRAL FEATURES



Forget Viral Marketing—
Make the Product Itself Viral
Don’t spend your time saturating YouTube with                                  VIRAL PRODUCTS ARE MORE EFFECTIVE
                                                                               THAN TRADITIONAL MARKETING
goofy videos, hoping one of them will be the next
                                                                               Simply adding a “Share” button to your product can
viral marketing sensation. Research we conducted                               increase peer-to-peer influence over product purchase
with the marketing analytics firm Social Amp proves                             by 400%. Viral product design has been shown to be
                                                                               up to 10 times as effective at increasing adoption as
that you can engineer digital (and even physical)                              traditional banner ads and up to twice as effective as
products to increase peer-to-peer promotion. The




                                                                      400
                                                                        0
                                                                               e-mail campaigns.
graphics above illustrate the explosive effect on
adoption among 2 million Facebook users when
viral features, such as user-generated personalized
invitations, were added to a software app for
sharing and discussing film-industry information.
by Sinan Aral and Dylan Walker              HBR Reprint F1106Z
                                                                                                                                %
                                                                                                                               INCREASE IN
                                                                                                                              PEER-TO-PEER
                                                                                                                                 INFLUENCE

34 Harvard Business Review June 2011
HBR.ORG


                                                                                                 Viral Features
                                                                                                 Passive      Active
                                                                                                 PROS              PROS
                                                                                                 Broader reach     Personalized
                                                                                                                   to be more
                                                                                                 More messages     persuasive and
                                                                                                 sent, and thus    more effective
                                                                                                 more adoption
                                                                                                                   Generates
                                                                                                 Reaches           more user
                                                                                                 a more            engagement,
                                                                                                 heterogeneous     longer use of
                                                                                                 population        the product,
                                                                                                                   and less churn
                                                                                                                   by adopters

                                                                                                 CONS              CONS
                                                                                                 Less effective     Narrower reach
                                                                                                 per message
                                                                                                                   Fewer
                                                                                                 Generates         messages sent,
                                                                                                 less user         and thus less
                                                                                                 engagement,       adoption
                                                                                                 shorter use of
                                                                                                 the product,      Reaches
                                                                                                 and more          a more
                                                                                                 churn by          homogeneous
                                                                                                 adopters          population

                                                                                                 The social cost
                                                                                                 of annoying
                                                                                                 people

                                                                                                 USE IT TO         USE IT TO
                                                                                                 Spread the        Build a loyal
                                                                                                 word about a      customer base
                                                                                                 product widely
                                                                                                                   Make a product
                                                                                                 Generate          sticky
                                                                                                 adoption
                                                                                                 quickly           Increase user
                                                                                                                   engagement

            …WHEN THE PRODUCT HAS
            ACTIVE AND PASSIVE VIRAL FEATURES



THE VIRAL PRODUCT LANDSCAPE                                                               ACTIVE FEATURES ARE
                                                                                ACTIVE




                                                         PERSONAL
                                                                                          MORE PERSUASIVE



                                                                                           % 2%
                        SOCIAL OFFERS




                                                                                          6
                                                         INVITATIONS
                        such as LivingSocial’s           such as those
                        group couponing                  provided with Google
                                                         beta products
USER-GENERATED                                                                                 6% INCREASE IN
NOTIFICATIONS                                                                                  ADOPTION PER
such as “Tweet”                                                                                MESSAGE, VERSUS
and “Share” buttons                                                                            2% FOR PASSIVE

                                 EMBEDDED
                                 OFFERS                                                   PASSIVE FEATURES
                                 such as free account                                     GET THE MOST HITS




                                                                                          246
                                                                                            6%
                                 sign-ups in e-mail
                                 messages

                                                          AUTOMATED
  AUTOMATED                                               TARGETING


                                                                                                                   98%
                                                                                PASSIVE




  NOTIFICATIONS                                           such as Amazon’s
  such as iTunes Ping                                     social product
  and Google Buzz                                         recommendations                      246% INCREASE IN
                                                                                               TOTAL ADOPTION,
                                                                                               VERSUS 98% FOR
 BROAD POPULATION                                       SPECIFIC INDIVIDUALS                   ACTIVE

                                                                                               June 2011 Harvard Business Review 35

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Viral products

  • 1. IDEA WATCH Vision Statement Sinan Aral is an assistant professor and Dylan Walker is a research scientist at New York University’s Stern School of Business. This research is drawn from a paper forthcoming in Management Science. BLUE RED LIGHT BLUE GRAY MAPPING ADOPTION OF INITIAL ADOPTER 2ND-TIER 3RD-TIER ADOPTER OTHER PEOPLE IN ADOPTER (REFERRED BY ADOPTERS’ SOCIAL ONE PRODUCT… (REFERRED BY AN A 2ND-TIER NETWORKS INITIAL ADOPTER) ADOPTER) …WHEN THE PRODUCT HAS …WHEN THE PRODUCT HAS NO VIRAL FEATURES PASSIVE VIRAL FEATURES Forget Viral Marketing— Make the Product Itself Viral Don’t spend your time saturating YouTube with VIRAL PRODUCTS ARE MORE EFFECTIVE THAN TRADITIONAL MARKETING goofy videos, hoping one of them will be the next Simply adding a “Share” button to your product can viral marketing sensation. Research we conducted increase peer-to-peer influence over product purchase with the marketing analytics firm Social Amp proves by 400%. Viral product design has been shown to be up to 10 times as effective at increasing adoption as that you can engineer digital (and even physical) traditional banner ads and up to twice as effective as products to increase peer-to-peer promotion. The 400 0 e-mail campaigns. graphics above illustrate the explosive effect on adoption among 2 million Facebook users when viral features, such as user-generated personalized invitations, were added to a software app for sharing and discussing film-industry information. by Sinan Aral and Dylan Walker HBR Reprint F1106Z % INCREASE IN PEER-TO-PEER INFLUENCE 34 Harvard Business Review June 2011
  • 2. HBR.ORG Viral Features Passive Active PROS PROS Broader reach Personalized to be more More messages persuasive and sent, and thus more effective more adoption Generates Reaches more user a more engagement, heterogeneous longer use of population the product, and less churn by adopters CONS CONS Less effective Narrower reach per message Fewer Generates messages sent, less user and thus less engagement, adoption shorter use of the product, Reaches and more a more churn by homogeneous adopters population The social cost of annoying people USE IT TO USE IT TO Spread the Build a loyal word about a customer base product widely Make a product Generate sticky adoption quickly Increase user engagement …WHEN THE PRODUCT HAS ACTIVE AND PASSIVE VIRAL FEATURES THE VIRAL PRODUCT LANDSCAPE ACTIVE FEATURES ARE ACTIVE PERSONAL MORE PERSUASIVE % 2% SOCIAL OFFERS 6 INVITATIONS such as LivingSocial’s such as those group couponing provided with Google beta products USER-GENERATED 6% INCREASE IN NOTIFICATIONS ADOPTION PER such as “Tweet” MESSAGE, VERSUS and “Share” buttons 2% FOR PASSIVE EMBEDDED OFFERS PASSIVE FEATURES such as free account GET THE MOST HITS 246 6% sign-ups in e-mail messages AUTOMATED AUTOMATED TARGETING 98% PASSIVE NOTIFICATIONS such as Amazon’s such as iTunes Ping social product and Google Buzz recommendations 246% INCREASE IN TOTAL ADOPTION, VERSUS 98% FOR BROAD POPULATION SPECIFIC INDIVIDUALS ACTIVE June 2011 Harvard Business Review 35