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Going Viral with the Subscription Business Model Influence Spreading in Social Networks Giovanni Viglietta (in collaboration with Joseph Peters) JAIST September 11, 2019 Going Viral with the Subscription Business Model Marketing in a


  1. Going Viral with the Subscription Business Model Influence Spreading in Social Networks Giovanni Viglietta (in collaboration with Joseph Peters) JAIST – September 11, 2019 Going Viral with the Subscription Business Model

  2. Marketing in a social network A company wants to introduce a new product to a group of people. Going Viral with the Subscription Business Model

  3. Marketing in a social network Instead of marketing it to everyone, it chooses a smaller target set. Going Viral with the Subscription Business Model

  4. Marketing in a social network The initial adopters will spontaneously advertize it to their friends. Going Viral with the Subscription Business Model

  5. Marketing in a social network This starts a cascade of adoptions spreading through the network. Going Viral with the Subscription Business Model

  6. Marketing in a social network Customers have an individual value, but also a network value! Going Viral with the Subscription Business Model

  7. Basic influence-spreading model D. Kempe, J. Kleinberg, and ´ E. Tardos Maximizing the spread of influence through a social network KDD 2003 Individuals may be more or less reluctant to emulate their peers. This is measured by a parameter called threshold. = 3 t If an individual with threshold t has at least t friends who adopted the product, he will adopt the product as well. Going Viral with the Subscription Business Model

  8. Basic influence-spreading model D. Kempe, J. Kleinberg, and ´ E. Tardos Maximizing the spread of influence through a social network KDD 2003 Individuals may be more or less reluctant to emulate their peers. This is measured by a parameter called threshold. = 3 t If an individual with threshold t has at least t friends who adopted the product, he will adopt the product as well. Going Viral with the Subscription Business Model

  9. Basic influence-spreading model D. Kempe, J. Kleinberg, and ´ E. Tardos Maximizing the spread of influence through a social network KDD 2003 Individuals may be more or less reluctant to emulate their peers. This is measured by a parameter called threshold. = 3 t If an individual with threshold t has at least t friends who adopted the product, he will adopt the product as well. Going Viral with the Subscription Business Model

  10. The subscription business model What if the product is subscription-based ? Every month, each individual decides whether to subscribe or not, based on his friends’ choices and his own threshold. Only the current subscribers exert influence on their friends. Going Viral with the Subscription Business Model

  11. The subscription business model What if the product is subscription-based ? Every month, each individual decides whether to subscribe or not, based on his friends’ choices and his own threshold. Only the current subscribers exert influence on their friends. Going Viral with the Subscription Business Model

  12. The subscription business model There may be a “promotional offer” for new subscribers: 1 1 1 1 1 λ λ λ If you become a subscriber, your subscription will remain active for λ months; then, you will decide whether to subscribe again or not. Going Viral with the Subscription Business Model

  13. Influencing the whole network The company wants everyone to become a stable subscriber, only marketing the product to a small initial set of individuals. Problem: How hard is it to determine such an initial target set? Going Viral with the Subscription Business Model

  14. Influencing the whole network The company wants everyone to become a stable subscriber, only marketing the product to a small initial set of individuals. Problem: How hard is it to determine such an initial target set? Going Viral with the Subscription Business Model

  15. Hardness of approximation We have a reduction from the NP-complete problem Set Cover. = { 1 2 3 4 5 6 7 } U , , , , , , = { 1 2 4 } S , , 1 = { 2 3 5 } S , , 2 = { 4 6 } S , 3 = { 3 4 6 7 } S , , , 4 = { 1 5 7 } S , , 5 Choose the smallest number of sets whose union is the universe. Going Viral with the Subscription Business Model

  16. Hardness of approximation We have a reduction from the NP-complete problem Set Cover. = { 1 2 3 4 5 6 7 } U , , , , , , = { 1 2 4 } S , , 1 = { 2 3 5 } S , , 2 = { 4 6 } S , 3 = { 3 4 6 7 } S , , , 4 = { 1 5 7 } S , , 5 Choose the smallest number of sets whose union is the universe. Going Viral with the Subscription Business Model

  17. Hardness of approximation Reduction: U 1 1 1 1 1 1 1 3 3 2 4 3 S S S S S 1 2 3 4 5 Going Viral with the Subscription Business Model

  18. Hardness of approximation Reduction: U 1 1 1 1 1 1 1 3 3 2 4 3 S S S S S 1 2 3 4 5 If λ = 1 , choose the universe and some other elements. Going Viral with the Subscription Business Model

  19. Hardness of approximation Reduction: U 1 1 1 1 1 1 1 3 3 2 4 3 S S S S S 1 2 3 4 5 If λ > 1 , ignore the universe elements. Going Viral with the Subscription Business Model

  20. Hardness of approximation Reduction: U 1 1 1 1 1 1 1 3 3 2 4 3 S S S S S 1 2 3 4 5 If λ > 1 , ignore the universe elements. Note: Set Cover is hard to approximate within a factor of o (log n ) , and we gave an approximation-preserving reduction. Theorem For bipartite networks, the smallest target set is NP-hard to approximate within a factor of o (log n ) . Going Viral with the Subscription Business Model

  21. Complete graphs What if the network is a complete graph? 3 5 2 2 1 4 5 Going Viral with the Subscription Business Model

  22. Complete graphs What if the network is a complete graph? 3 5 2 2 1 4 5 Note: it is convenient to pick the nodes of highest threshold. Going Viral with the Subscription Business Model

  23. Complete graphs What if the network is a complete graph? 3 5 2 2 1 4 5 Note: it is convenient to pick the nodes of highest threshold. Note: picking more nodes is better than picking fewer nodes. Going Viral with the Subscription Business Model

  24. Complete graphs What if the network is a complete graph? 5 5 1 4 2 3 2 Note: it is convenient to pick the nodes of highest threshold. Note: picking more nodes is better than picking fewer nodes. So, sort the nodes in O ( n log n ) time and use binary search. Going Viral with the Subscription Business Model

  25. Complete graphs We can find the smallest target set if we can predict whether a given initial set will influence the whole network. Note: after λ rounds, the number of influenced nodes will be monotonic (increasing or decreasing). So, the influenced set stabilizes in O ( n ) rounds. Since the steps of the binary search are O (log n ) , this yields O ( n log n ) time. Theorem If the network is a complete graph, the smallest target set is computable in O ( n log n ) time. Going Viral with the Subscription Business Model

  26. Paths and cycles What if the network is a path or a cycle? 1 1 2 2 1 2 1 Going Viral with the Subscription Business Model

  27. Paths and cycles What if the network is a path or a cycle? 1 1 2 2 1 1 1 Note: if λ = 1 , we must choose all nodes of threshold 2 , as well as their neighbors. Going Viral with the Subscription Business Model

  28. Paths and cycles What if the network is a path or a cycle? 1 1 2 2 1 1 1 Note: if λ = 1 , we must choose all nodes of threshold 2 , as well as their neighbors. Note: if λ > 1 , if two neighboring nodes of threshold 2 are both inactive, they will never become active. Going Viral with the Subscription Business Model

  29. Paths and cycles What if the network is a path or a cycle? 1 1 1 1 1 2 1 Note: if λ = 1 , we must choose all nodes of threshold 2 , as well as their neighbors. Note: if λ > 1 , if two neighboring nodes of threshold 2 are both inactive, they will never become active. Note: activating a single node in a chain of nodes of threshold 1 will activate the whole chain. Going Viral with the Subscription Business Model

  30. Paths and cycles What if the network is a path or a cycle? 1 1 1 1 1 2 1 Note: if λ = 1 , we must choose all nodes of threshold 2 , as well as their neighbors. Note: if λ > 1 , if two neighboring nodes of threshold 2 are both inactive, they will never become active. Note: activating a single node in a chain of nodes of threshold 1 will activate the whole chain. Going Viral with the Subscription Business Model

  31. Paths and cycles What if the network is a path or a cycle? 1 1 1 1 1 2 1 Note: if λ = 1 , we must choose all nodes of threshold 2 , as well as their neighbors. Note: if λ > 1 , if two neighboring nodes of threshold 2 are both inactive, they will never become active. Note: activating a single node in a chain of nodes of threshold 1 will activate the whole chain. Going Viral with the Subscription Business Model

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