NYU Study Shows The Power Of Viral Marketing

Written on
Feb 7, 2008 
Sarah Novotny  |

casestudy.jpgNYU Stern Professor Vasant Dhar, along with student Elaine Chang, has released a new research paper titled “Does Chatter Matter”. Dhar, an expert in the strategic implications of information technology has found that the volume of blog posts featured on a site before an album’s release can significantly affect future album sales and in turn, predict sales for record labels.

This study is one of the first to quantify the economic impact of viral marketing on the music industry.

Based on a sample of 108 albums released during the first two months of 2007, Dhar found that when legitimate blog posts exceeded a threshold of 40 before an album’s release, sales were three times the average. If albums blogged about were associated with a major record label, sales went up five-fold. When blog activity reached more than 250 posts, sales were six times the average regardless of an association with a major or independent label. The number of an artist’s MySpace friends also contributed to higher future sales, but had a weaker correlation as compared to blog chatter.

Sarah Novotny is a contributing editor at Adotas. Sarah grew up in San Jose, California. Her educational and professional career have taken her to both Los Angeles and New York City where she received a B.F.A. from NYU. As a writer, Sarah has free-lanced for various publications focusing primarily on traditional advertising and media reviews. When not writing and editing for Adotas, Sarah is continuing her acting career in various theatrical and film/television productions.

Reader Comments.

Great Article. I have been testing viral marketing for My Internet Business and have seen an increase in traffic and sales statistics, however I am broadening my analogies to other forms of business, and services. Thanks for the input.

Big Thumbs up and I will be definately returning to see what other information you have.


Posted by Megan | 5:18 am on February 16, 2008.

Yes, really interesting stats, which do confirm the impact of the social web.

Posted by mediablogger | 1:24 pm on February 28, 2008.

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