Viral Marketing : The Rise of Marketing Virus Nitin Singh* Abstract Viral Marketing has generated a lot of excitement in recent years because it seems like the ultimate free hot cake: Pick some small number of people to “seed” your ideas, product, or message and let it “go viral” and then watch while it spreads ceaselessly to reach millions of others. That is the power of Viral Marketing. It has attracted advertisers in recent years, yet little is known about how exactly it works from an information processing perspective. Viral Marketing has evolved into a major marketing branch for many existing companies. Many new enterprises see the effectiveness and advantages of electronic business not being limited by time and distance when engaging in business activity. The opportunities to do business worldwide with the click of mouse are enormous and enticing. The aim of this research paper is to present many diverse facets of the Viral Marketing concept, understand the relationship between word of mouth marketing and Viral Marketing and why Viral Marketing through social media formats has been effective. This paper fully addresses the rationale of the need for corporate presence in social media and the value that can be derived from a well-developed Viral Marketing campaign. Keywords: Word of Mouth, e-Business, Viral Marketing, e-Branding, Social Media. Introduction the audience something they would want to watch, interact with and share. ‘Viral’ campaign helps to do The future of traditional mass media advertising is the same, create an impact and reach out to a wider uncertain in the modern environment of increasingly audience in the shortest possible time and all of this prevalent digital video recorders and spam filters. at a fraction of cost as compared to traditional Marketers must realize that 65% of consumers advertising. consider themselves overwhelmed by too many advertising messages and nearly 60% believe Viral Marketing is one such option and a potentially advertising is not relevant to them. Such information effective way to bypass growing consumer apathy. overload can cause consumers to defer their purchase The main goal is to create infectious, viral messages altogether and strong evidence indicates consumers actively avoid traditional marketing instruments. Consumers are exposed to hundreds of messages *Nitin Singh each day through broadcast and print media, outdoor Strategist - Marketing & Operations promotions, Internet and more. Innovation in Ultra Lofts marketing and its techniques is what makes or breaks Noida, India a brand. Marketers need to break the clutter and give Review of Professional Management, Volume 12, Issue 2 (July-December-2014) 34 that appeal to their target market with high social existing brick and mortar competitors through networking potential that can easily spread through innovative pricing and exploitation of competitors’ individuals. But why are they so effective? It is because distribution channels. The beauty of this marketing the internet has enabled companies to reach out to technique is that none of it requires any effort. the consumers at a more personal and interactive Customers, who have caught the virus, do the selling. level. 75% of the internet’s total population go to a What does a virus have to do with marketing? social networking site like Facebook, Twitter and YouTube, where time spent in social media is a lot As discussed, Viral Marketing describes any strategy more than time spent on email. The sharing effect is that encourages individuals to pass on a marketing fast and rapid, like the Pyramid scheme. message to others, creating the potential for exponential growth in the message’s exposure and Empowered by online social technologies such as influence. Like viruses, such strategies take advantage blogs, social networking sites like MySpace, user- of rapid multiplication to explode the message to generated content sites like You Tube and countless thousands, to millions. The consumer now demands communities across the Web, customers are now a higher, more personal interaction with the company connecting with and drawing power from one another. which leads to the development of an experience. They’re defining their own perspective on companies “The new demands created by changed consumer and brands, a view that’s often at odds with the image needs, societal changes and technological a company wants to project. Viral Marketing exploits developments, mean that organizations would have existing social networks by encouraging customers to keep up with these changes and start to rethink to share product information with their friends. Social their ways of operation.” networks have become a cultural phenomenon. For example Facebook, one of the largest social The consumer’s demands for a personal, interactive networking sites in the U.S. was founded in 2004. By and relational experience have arisen from the February 2009, it boasts more than 175 million active opportunity to demand and experience this type of users and continues to grow rapidly. Worldwide these interaction made possible through improved users spend 3.0 billion minutes each day on Facebook. technology. Companies are responding to the changing More than 850 million photos and 5 million videos are trends of obtaining consumer information and desire uploaded on the site each month. There are hundreds for relational and personal experiences through social of other similar sites including MySpace, orkut, twitter media technologies. and LinkedIn. History of Viral Marketing MySpace has already launched its international sites in Britain, Australia and France. And plans to expand The term Viral Marketing is credited to venture its services to nine other countries in Europe and Asia capitalists Steve Jurvetson and Tim Draper who used in the near future. More than 70% of Facebook users viral to describe the marketing technique behind are outside the U.S. and more than 35 translations Hotmail’s growth. In 1996, Sabeer Bhatia and Jack are available on the site. Other countries have their Smith pioneered a great new product category free own versions of Facebook and MySpace. For example, web-based email. “The special catalyst for Hotmail’s Cyworld which started before MySpace and Facebook rapid growth is what we at Draper Fisher Jurvetson were conceived in the US, had over 21 million have come to call “Viral Marketing” not because any registered users in South Korea by mid-2007, or traditional viruses are involved but because of the approximately 40% of the South Korean population. pattern of rapid adoption through word-of-mouth It has over 90% penetration in the 20-29 year old networks”. market. Cyworld users upload about 50,000 videos and 5 million photos every day. When Hotmail first began, they decided that the best way to entice new customers would be to reach Firms are now structuring their businesses in a way friends, family and colleagues of each user they had. that allows them to grow like a virus and lock out the So, in the footer of each and every email that was sent from a Hotmail account, the Hotmail team placed Review of Professional Management, Volume 12, Issue 2 (July-December-2014) 35 a link that read something like this: “Want a free email For an idea to spread, it needs to be sent and account? Sign-up for Hotmail today!” And yes, believe received. it or not, this strategy worked and this is called viral. Hundreds of thousands of users hurriedly signed up No one “sends” an idea unless: for their free email accounts and the rest is history. They understand it That Hotmail model is the foundation for the Viral They want it to spread Marketing we are familiar with today. From Facebook, They believe that spreading it will enhance their to Twitter, YouTube to LinkedIn, Viral Marketing takes power (reputation, income, friendships) or their many shapes and forms. peace of mind The effort necessary to send the idea is less than It can vary in approach and evolve within each format, the benefits but the bottom line is to share information and do so on a large scale for free. In its first 1.5 years, Hotmail No one “gets” an idea unless: signed up over 12 million subscribers. The The first impression demands further investigation Factsheet (albeit September 2010) from Microsoft They already understand the foundation ideas noted that “Windows Live Hotmail is one of the world’s necessary to get the new idea largest e-mail providers with more than 355 million They trust or respect the sender enough to invest active accounts”. A July 2011 post on the official the time Microsoft blog claimed Hotmail served 360 million unique users a month. According to August 2011 Once an idea is shared it gains momentum. Ultimately, statistics cited by Yahoo!, Hotmail is the biggest businesses and marketers interested in pursuing Viral webmail provider with over 330 million unique users. Marketing efforts, need to understand not only what makes Viral Marketing work but what it is that their Why it Works audiences are interested in, what sparks their curiosity and are willing to share. Viral Marketing works because we are humans, strange but true. It’s the human nature that they are The 3 C’s of Viral Marketing curious and like to share information, especially when the information is relevant to their interest, need or After getting to know the importance of a Viral sense of humor. Viral Marketing to be successful, the Marketing strategy it is important to implement a strategy must include a viral element from the viable strategy to create something that is going to beginning. Not only must the technical aspects be be viral. However, it is not easy as it sounds. Before developed and ready to implement, but the marketer creating a viral campaign there are three important must also have a sense of how to seed the concept of C’s that you should remember.