[gov3009-l] Applied Statistics Workshop: Thales Teixeira on Wed., Oct. 10

what works for one decision may not work for the other. In this research we propose a novel consumer-centric model of viral advertising consisting of viewing and sharing decisions. We apply the model to assess the role of humor, present in 91% of viral ads, by teasing out the differential impact that type of humor (pure or shocking) has on each decision. In the lab, we record the facial expressions of consumers as they watch online ads containing either pure (i.e., smile, laughter) or shocking humor (e.g., shock from profanity), and examine its impact on their decisions. The video data is processed using face tracking software and used to calibrate a dynamic sequential model that accounts for both within and cross-decision dynamics. We find that shocking humor increases viewing but reduces sharing compared to no humor at all. Yet, content isn't the only factor of viral ad success; individual traits also matter. We also find that highly extraverted and self-directed consumers share humor ads more often and to a broader group of people each time. The magnitude of the effects of these two novel findings is then measured in a viral field study in which we selectively sent ads to participants and tracked views derived from sharing. We find that extraverted people garnered 300% more total views by sharing non-shocking humor ads than introverted people sharing ads low in humor.