Increasing crowdfunding success through social media

the importance of reach and utilisation in reward-based crowdfunding

Thomas Clauss*, Thomas Niemand, Sascha Kraus, Patrick Schnetzer, Alexander Brem

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

The rising use of crowdfunding makes it important for project initiators to know how they can increase the likelihood of success of their crowdfunding campaign. The effects of using social media, although relatively easy to do via most crowdfunding platforms, have not yet been analysed in greater detail in scientific research. We address this research gap by investigating the effects of social media reach and utilisation on measures of reward-based crowdfunding success, based on an analysis of 230 projects from the crowdfunding platform wemakeit. Our results show that social media reach via the number of social media accounts that belong to the project and the number of accounts that belong to the project initiator increases the number of investors and the percentage of the funding goal that is obtained. Furthermore, social media reach via the size of the projects' and the individuals' social networks has not been found to be important for crowdfunding success. Social media utilisation in regard to the amount of content shared is found to be positively associated with crowdfunding success.

Original languageEnglish
JournalInternational Journal of Innovation Management
ISSN1363-9196
DOIs
Publication statusPublished - 1. Jan 2019

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Social media
Reward
Social networks
Funding
Investors

Keywords

  • Crowdfunding
  • reach
  • social media
  • success
  • utilisation

Cite this

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title = "Increasing crowdfunding success through social media: the importance of reach and utilisation in reward-based crowdfunding",
abstract = "The rising use of crowdfunding makes it important for project initiators to know how they can increase the likelihood of success of their crowdfunding campaign. The effects of using social media, although relatively easy to do via most crowdfunding platforms, have not yet been analysed in greater detail in scientific research. We address this research gap by investigating the effects of social media reach and utilisation on measures of reward-based crowdfunding success, based on an analysis of 230 projects from the crowdfunding platform wemakeit. Our results show that social media reach via the number of social media accounts that belong to the project and the number of accounts that belong to the project initiator increases the number of investors and the percentage of the funding goal that is obtained. Furthermore, social media reach via the size of the projects' and the individuals' social networks has not been found to be important for crowdfunding success. Social media utilisation in regard to the amount of content shared is found to be positively associated with crowdfunding success.",
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author = "Thomas Clauss and Thomas Niemand and Sascha Kraus and Patrick Schnetzer and Alexander Brem",
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language = "English",
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Increasing crowdfunding success through social media : the importance of reach and utilisation in reward-based crowdfunding. / Clauss, Thomas; Niemand, Thomas; Kraus, Sascha; Schnetzer, Patrick; Brem, Alexander.

In: International Journal of Innovation Management, 01.01.2019.

Research output: Contribution to journalJournal articleResearchpeer-review

TY - JOUR

T1 - Increasing crowdfunding success through social media

T2 - the importance of reach and utilisation in reward-based crowdfunding

AU - Clauss, Thomas

AU - Niemand, Thomas

AU - Kraus, Sascha

AU - Schnetzer, Patrick

AU - Brem, Alexander

PY - 2019/1/1

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N2 - The rising use of crowdfunding makes it important for project initiators to know how they can increase the likelihood of success of their crowdfunding campaign. The effects of using social media, although relatively easy to do via most crowdfunding platforms, have not yet been analysed in greater detail in scientific research. We address this research gap by investigating the effects of social media reach and utilisation on measures of reward-based crowdfunding success, based on an analysis of 230 projects from the crowdfunding platform wemakeit. Our results show that social media reach via the number of social media accounts that belong to the project and the number of accounts that belong to the project initiator increases the number of investors and the percentage of the funding goal that is obtained. Furthermore, social media reach via the size of the projects' and the individuals' social networks has not been found to be important for crowdfunding success. Social media utilisation in regard to the amount of content shared is found to be positively associated with crowdfunding success.

AB - The rising use of crowdfunding makes it important for project initiators to know how they can increase the likelihood of success of their crowdfunding campaign. The effects of using social media, although relatively easy to do via most crowdfunding platforms, have not yet been analysed in greater detail in scientific research. We address this research gap by investigating the effects of social media reach and utilisation on measures of reward-based crowdfunding success, based on an analysis of 230 projects from the crowdfunding platform wemakeit. Our results show that social media reach via the number of social media accounts that belong to the project and the number of accounts that belong to the project initiator increases the number of investors and the percentage of the funding goal that is obtained. Furthermore, social media reach via the size of the projects' and the individuals' social networks has not been found to be important for crowdfunding success. Social media utilisation in regard to the amount of content shared is found to be positively associated with crowdfunding success.

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KW - utilisation

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