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Chapter 4
The Role of Geo-Demographic Big Data
for Assessing the
Effectiveness of Crowd-Funded Software Projects:
A Case Example of “QPress”
Jonathan BishopCentre for Research into Online Communities and E-Learning Systems, UK
ABSTRACT
The current phenomenon of Big Data – the use of datasets that are too big for tra-
ditional business analysis tools used in industry – is driving a shift in how social
and economic problems are understood and analysed. This chapter explores the role
Big Data can play in analysing the effectiveness of crowd-funding projects, using
the data from such a project, which aimed to fund the development of a software
lug-in called ‘QPress’. Data analysed included the website metrics of impressions,
clicks and average position, which were found to be significantly connected withgeographical factors using an ANOVA. These were combined with other country
data to perform t-tests in order to form a geo-demographic understanding of those
who are displayed advertisements inviting participation in crowd-funding. The
chapter concludes that there are a number of interacting variables and that for Big
Data studies to be effective, their amalgamation with other data sources, including
linked data, is essential to providing an overall picture of the social phenomenon
being studied.
DOI: 10.4018/978-1-4666-8465-2.ch004
Copyright ©2015, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.
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INTRODUCTION
In the current digital age, we have seen an unprecedented global recession that could
be seen to have challenged the willingness of persons to take risk in innovation (Etz-kowitz, 2013), but this is not always the case (Singh, 2011). One approach that has
been suggested as an appropriate means to help overcome such financial shortfalls
is crowd-funding. Put simply, crowd-funding is the procurement of financial capital
from those who want to benefit from a particular innovation (Kshirsagar & Ahuja,
2015; Ordanini et al., 2011) . The question that is often asked is how to assess the
effectiveness of crowd-funding projects and also how they should be benchmarked.
This chapter argued that an important part of this process is the use of what has
become called ‘Big Data.’ Big Data is still a maturing and evolving discipline and
Big data databases and files have already scaled beyond the capacities and capabili-ties of commercial database management systems (Kaisler et al., 2014) . Big data
is defined as datasets whose size is beyond the ability of typical database software
tools to capture, store, manage, and analyse, where the primary characteristics are
‘volume, velocity, and variety’ (Malgonde & Bhattacherjee, 2014; Zhang et al., 2014) .
It has been argued that geography might provide a useful lens through which to
understand big data as a social phenomenon in its own right in addition to provid-
ing answers to the complexity of social and spatial processes (Graham & Shelton,
2013) . Even so, it has been argued that the aggregation of social media as big data
is not necessarily social science data, even in the fields of human geography andgeographic information science (Wilson, 2014). This chapter shows how using
geo-demographic analyses with Big Data can improve the effectiveness of crowd-
funded projects.
BACKGROUND
This chapter is in essence looking at effective means for assessing the impact of a
crowd-funded campaign supported by advertising. It is argued that geo-demographicfactors play a significant role in the effectiveness of crowd-funding projects, particu-
larly those supported by advertising. It is further argued that Big Data can be used
to identify trends that go beyond the usual metrics for advertising campaigns – such
as impressions, clicks and average position – while at the same time supporting the
use of such measures.
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Big Data
According to the New York Times, many think Big Data is synonymous with “Big
Brother,” in the form of mega-corporations collecting masses of surveillance informa-tion on their customers or potential customers. However, as this chapter advocates,
it can also be of use to smaller entities, such as crowd-funded projects. It has been
estimated that Google alone contributed 54 billion dollars to the US economy in 2009
as a result of Big Data, but there is still no clear consensus on what it is (Labrinidis
& Jagadish, 2012) . Even so, Big Data is something that each business will have to
adopt as a normal way to develop business strategy (Woerner & Wixom, 2015) .
Crowd Funding
It has been argued that the main objective of crowd-funding is to give entrepreneurs
a way of raising money that does not involve banks or venture capitalists, which usu-
ally involved giving the customers of the product a stake in it in one way or another
(Kshirsagar & Ahuja, 2015) . This can be seen as desirable in the current capitalist
environment, where banks charge excessive rates of interests and venture capitalists
extort shares in profits totally unrelated to the assistance they have actually given a
project. Crowd-funding has been used in fields as diverse as archaeology (Bonacchi
et al., 2015) and sustainable development (Kunkel, 2015). By its very name it is
clear that by targeting potential beneficiaries of a product or service, to ask them toget on board with the funding of something they want, then a strong customer base
is possible for products before they have even hit the shelves – or download pages
as may be more appropriate. Crowd-funding is increasingly becoming a trusted way
to provide finance to businesses and consumers alike (Laven, 2014). The existence
of specialist websites like IndieGoGo (Dushnitsky & Marom, 2013; Stern, 2013)
and tailored charitable giving websites, it can be seen the opportunities for reaching
potential investors is possible whether one is looking to be sponsored for a race or
other effort, or get a product off the ground, then crowd-funding can be a means to
do it. It is usually conducted via the Internet and involves not only the investors andinitiator, but often third-parties, such as programmers, who use the funds collect-
ing through crowd-funding initiatives to produce the project being crowd-funded
(Ferrer-Roca, 2014).
It is clear that crowd-funding has a lot of potential to replace the traditional
capitalist way of doing things, where a product’s development is driven by someone
intending to make financial profit through efficient use of human and financial capi-
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tal, rather than it achieve benefits to stakeholders is other ways also (Harvey, 2011)
. This is because when customers become financers, the traditional model of risk
being taken on by a small number of shareholders in a company that brings in money
from selling to customers to reward that risk appears less relevant. It is known that
the cost of private sector services can be equivalent to the value of human capital
in the voluntary sector (Bishop, 2012). On that basis, whilst this study will focus
on the crowd-funding of software through receiving funds to pay programmes, it
is easily conceivable that in the future crowd-funding will involve venture human
capital as much as the micro-financing it does at present.
Online Advertising
Big data is on the one hand distinct from the Internet, and on the other it can be
seen that the Web makes it much easier to collect and share data (Cukier & Mayer-
Schoenberger, 2013) . One such situation in which Big Data can be collected is in
the case of online advertising, which produces a huge number of metrics. This has
long been the case with online advertising, where the tracking of a user’s interests
based on the websites they visit and using that to present custom adverts is long es-
tablished (Arthur et al., 2001). As can be seen from Table 1, the standardised metrics
collected from such platforms are clicks, impressions, cost and average position.
The concept of Big Data in terms of paid advertising campaigns is argued to
yield results in terms of business effectiveness, allowing for the refining and rolling
out of new and existing campaigns (Brechner, 2013). Big Data has been argued to
have a lot of potential for influencing the online advertising markets, with real-time
bidding being widely considered as an emerging frontier in computational advertis-
ing research (Yuan et al., 2014) . The effectiveness of a real-time bid is reflected in
Table 1. Key metrics collected in the serving of online advertisements
Metric Description
Clicks When an advert has been selected, whether by tapping it with a finger or stylus on a
tablet or by using a mouse pointer on a desktop it is said to have been clicked. Thenumber of clicks are the number of times an advert has been selected.
Impressions An impression is when a given advert has been made available on a given page or
screen in order to entice a potential customer to click it.
Costs The cost of an advert is often related to the number of clicks it generates, or in many
cases when the visitor to a website following clicking on an advert actually engages
with the website, such as buying a product or liking a post.
Average Position The average position of an advert reflects how far up a page or screen it is. It is
assumed the farther up a page or screen, the more likely it is to be clicked. On bidding
platforms, the person paying the highest amount on a keyword goes to the top.
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the average position of the advert concerned, as can be seen from Table 1. The
lower the number of the advert position, the more successful the campaign has been,
as the more likely it will have been seen by potential customers. Big Data can
therefore play an important role in seeing what makes an advertisement successful.The cost of an online advertising campaign is usually measured in cost-per-
impression, cost-per-click, or cost-per-action (Huang, 2013). By exploring the overall
picture around this, Big Data can improve the effectiveness of an online advertis-
ing campaign (Huang, 2013). Equally, as the point of Big Data is to mine data in
ways that bring out new information, then it might be a dataset could suggest other
ways of determining the cost of an online advert, such as ‘cost-per-friend,’ where
advertising to the friends of someone who is already a customer, may deliver new
customers. Such systems already exist, such as to recommend people join the buddy
list of someone whom a friend has expressed positive sentiment towards or whoman enemy has been declared an enemy by (Bishop, 2011).
Geo-Demographic Analysis
Effective use of analytics in relation to Big Data is now key to the success of many
businesses, whether, scientific, engineering or government endeavours (Herodotou
et al., 2011; Hurwitz et al., 2013) but by the very nature of Big Data, choosing the
correct method for analysis is a challenge (Shim, 2012). This chapter has sought
to propose that the effectiveness of crowd-funding campaigns be assessed throughmaking use of geo-demographic factors. Table 2 sets out some of the ones that will
be used in this study.
Table 2. Geo-demographic factors that influence advertising campaign effectiveness
Factor Description
Productivity Productivity is the extent to which an area is producing work, such as goods and
services. It has been found in areas with the lowest levels of trolling, productivity
is lower also.
Education Level Education level, often measured in terms of NVQ qualification level, refers to
the extent to which a person has received a formal education. Areas with the
lowest trolling often have lower NVQ levels.
Intelligence Intelligence, often measured in terms of ‘performance IQ,’ refers to the capacity
someone has to adapt to the environment around them and solve problems with
minimal mental effort. Areas with the lowest intelligence have been associated
with low levels of trolling.
Quality of Life Quality of life is the perception that one is getting out of life what one wants.
High quality of life is associated with low levels of trolling and high productivity
is associated with low quality of life.
Rooms in House A high number of rooms in a house are associated with low levels of trolling.
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It has long been argued that labour productivity is linked to geographical factors
(Chaney & Hornbeck, 2012; Norcliffe & Mitchell, 1977) . This may appear obvious,
as some communities have more job prosperity than others. Productivity is also
linked to factors such education and academic accomplishment in terms of geo-graphic determination (Zhu et al., 2015). This can have severe impacts on prosper-
ity – and Internet participation – which may restrict the effectiveness of online
advertising if the intended market is unable to be reached. It is known in some areas
like construction that geographical factors have little impact on productivity (Odes-
ola & Idoro, 2014) . It may therefore be necessary to consider local factors when
interpreting results relating to productivity and its impact on crowd-funding. It is
likely to be that where a geographical location is deficit in one demographic factor
that they may also be deficit in others.
In terms of geographic mobility, education has been known to be an importantfactor (Olwig & Valentin, 2014) . Indeed, geo-demographic factors such as size of
household are known to be linked to education (Katircioğlu, 2014). Geographical
factors are known to be causes of barriers to education (Suhonen, 2014). Education
and geographical factors are known to be linked to socioeconomic indicators (Wil-
son‐Ching et al., 2014) . On that basis it is likely education levels in geographical
regions will affect the extent to which people participate in online advertising and
crowd-funding projects. Many crowd-funding projects that relate to software will
often have a limited user-base. It might be that the less likely a mega-corporation is
to develop a particular product or service, the more popular a crowd-funded project– doing something many people want – will be.
Intelligence is known to be linked to geographic factors (Suhonen, 2014), and
also crowd-funding is known to make the best use of finance and knowledge to
provide opportunities to multiple people from diverse backgrounds (Shiller, 2013).
Indeed, crowd-funding has become a popular means for people to improve the qual-
ity of their life though pooling financial and other resources to achieve their goals
(Feldmann et al., 2013) . Crowd-funding therefore has the potential to be a means
to increase opportunity to disadvantaged groups, including through making it pos-
sible for those who have no apparent impairment raise funds to help those who dohave difficulties, but whom may otherwise be denied equal opportunities because
they are not as profitable as mega-corporations deem they need to be in order to be
worthwhile customers.
Table 3 shows two technological factors that could have an effect on geo-de-
mographic differences in assessing crowd funding effectiveness, namely online ad
expenditure and Internet access. It has been argued that when assessing the impact
of expenditure in relation to geographical issues, these should as far as possible
reflect local market conditions (Bojke et al., 2013) . This may be the case with
ad expenditure, meaning factors such as productivity and Internet access being
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important considerations in assessing geo-demographic issues in relating to the
advertising of crowd-funding projects. Factors such as number of rooms in a house
and Internet access available in those rooms are known to be important factors geo-
demographically (Bishop, 2014a).
A GEO-DEMOGRAPHIC ANALYSIS OF BIG DATA CONNECTEDWITH ADVERTISING OF CROWD-FUNDING PROJECTSTHROUGH THE CONTEMPORARY PRISM OF INTERNETTROLLING
Big Data as a term on the whole refers to datasets that are so complex that they
become awkward to work with using standard statistical software (Sagiroglu &
Sinanc, 2013; Snijders et al., 2012) . On that basis, testing its impact on crowd-
funded projects can be challenging, especially as many crowd-funding website donot produce analytics data. The purpose of this study is on the one hand to show that
Big Data can replicate the findings of ‘small data’ (Bishop, 2014a)when it comes to
geo-demographic datasets. On the other hand the study hopes to show that one of
the optimal ways to analyse Big Data is over a period of time based on monitored
categories of data. It is argued that methods such as Panel Data are suited to Big
Data, such as for identifying trends in behaviour over periods of time. In order to
provide evidence in support of this claim an ANOVA is used along with t-tests to
show relationships between metrics such as clicks, impressions, costs and position
with the geo-demographic data of the study to be replicated (Bishop, 2014a). As canbe seen, however, even a dataset this small has the same difficulties as the massive
datasets associated with Big Data, as the multitude of variables still produce a large,
more varied and complex structure that is akin to the difficulties associated with
storing, analysing and visualising Big Data (Sagiroglu & Sinanc, 2013) .
Table 3. Technology-based geo-demographic factors
Term Description
Online Ad expenditure The amount a country spends on online advertising, measured in US
dollars.
Internet Access The percentage of households with Internet access.
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The Role of Geo-Demographic Big Data
The Study Being Replicated
Internet trolling can be defined as the posting of a message to the Internet in order
to provoke a reaction (Bishop, 2013a; Bishop, 2013b; Bishop, 2014a; Bishop,2014b; Bishop, 2014c; Cowpertwait & Flynn, 2002; Crumlish, 1995; de-la-Peña-
Sordo et al., 2013; Hardaker, 2010; Hardaker, 2013; Jansen, 2002; Jansen &
James, 1995; McCosker, 2013; Pfaffenberger, 1995; Phillips, 2012; Walter,
2014) . One might therefore regard advertising – which attempts to provoke
certain reactions in consumers and others – to be a form of trolling. Indeed, a
premise used in this chapter is that online advertisements can be considered to be
acts of trolling users – to draw their attention to something they may not have
originally been concerned with, such as a crowd-funding project. In order to
provide evidence in support of this, the chapter will seek to replicate the findingsof a study into linking Internet trolling to geographical factors (i.e. Bishop,
2014a). This previous study sought to identify factors that could be used to predict
whether a given locality was likely to have high levels of trolling based on its
geo-demographical factors.
As can be seen from the data in Table 4, which had a CV of 3.07, it was safe to
conclude that the locality in which one lives has an effect on education outcomes,
which were likely down to the geo-demographics of the area. Wales, which had
the lowest productivity (164), which was half that of the South East of England
(320) had an education outcome of 2 compared to 3 in the case of the South East.Intel-ligence was also lower in Wales (IQ=92) compared to the South East
(IQ=105), but this may be down to biases in the measure of intelligence, which
can be linked to factors that favour more prosperous communities over more
deprived ones.
Differences between the areas in relation to intelligence meant it was suitable to
accept the claim that intelligence differs by geography, which is likely because those
who achieve higher qualifications are more likely to be well practised in the skills
Table 4. Factors affecting propensity of Internet trolling in given geographies
Variable N Wales Scotland South
East
F p-value SE
Trolling Incidents
(Adj)
- 237 365 10201 - - -
Productivity - 164 212 320 - - -
Education Level 161 2 3 3 6.63 <0.003 0.11
Intelligence 150 92 102 105 4.27 <0.003 0.62
Quality of Life 150 33.11 32.01 30.05 3.11 <0.017 0.5
Rooms in House 161 5.96 5.05 5.09 4.45 <0.014 0.01
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that form part of intelligence testing. Perception of quality of life is also significant
and may correlate to the productivity levels as the higher productivity figures seem
to be directly proportional to lower quality of life. The number of trolling incidents
per productivity in Wales, Scotland and in the South East of England provided aclear indicator that increased productivity does not result in reduced cybercrime.
The extreme number of incidents of flame trolling in the South East suggests that
the police authorities in the region are not taking trolling seriously, and it is not
young people that to blame for the flame trolling. Indeed, one police force in that
locality is known to be soft on flame trolling.
Sussex Police refused to take action against a police officer, aged 32 from Bir-
mingham, who allegedly harassed Sussex resident, Nicola Brookes, on Facebook.
The police officer allegedly targeted Brookes directly, including hacking in to her
email, for which computer forensics of his IP address was available, but during the19 months of appeals by Brookes he allegedly had his computer reconditioned. This
clearly shows that even where there is strong geographical links showing trolling
propensity, this does not necessarily reflect itself in terms of police action. Indeed,
one might argue that the reason trolling is so high in some geographical regions is
because of police inaction.
Methodology
The study’s methodology was based on a somewhat empirical approach, where datawas collected in the form of web metrics on the basis that it could be analysed to
provide truths about those in the countries the data was recorded from. In terms of
methods the data was collected through using the metrics that come from Google
Ads, and analysed using ANOVA and t-tests on the basis of that. The dataset was
reduced to produce groups based on countries, which were reduced to 13 OECD
countries on the basis there were at least 30 observations per country and there was
a good availability of quality country-specific data from the OECD. This produced
a total number of observations of 2787. The Google Ad displayed is in Figure 1.
Figure 1. A Google Ad advertisement for ‘QPress’.
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Results
Table 5 shows the result of the outcome of the ANOVA that was run on the dataset. It
is clear to see that for the 13 OECD countries there were three significant outcomes,namely clicks, impressions, and average position. As can be seen below, these were
used as part of a further analysis with the means for each of the countries on each
of these factors being compared on a country level.
Table 6 shows the OECD data on Internet access and online advertisement
spending merged into the same table with the Means for the factors identified in
Table 6, all listed for each of the 13 countries selected. The table is sorted with the
country with the highest amount spent on advertising at the top and the one with
the lowest advertising expenditure at the bottom. No data was supplied by the OECD
for Mexico, and as it is low on many other indicators, it did not seem inappropriateto have it at the bottom due to having a null value. With a CV of 1.786 it is clear to
see that it is safe to reject the null in the case of Clicks (F=2.271, p=<0.008), Im-
pressions (F=6.330, p=<0.001) and Average Position (F=18.745, p=<0.001). In
the case of Costs it was necessary to keep the null because the F-score of 1.229 did
not exceed the CV of 1.786, and in any case the difference was not significant
(p=<0.001). Table 6 shows all three of these factors with the Means for each coun-
try next to the Internet access rate and online ad spend for those countries to enable
to reader to easily see the relevance of these.
Comparing Countries with High and Low Country Metrics
This section seeks to find out the differences between those countries reporting the
lowest scores on various socio-economic factors and those showing the highest. The
socio-economic factor of productivity was derived from the OECD variable of the
same name. Education was calculated from the Wolfgram Alpha databank, which
ranks education level for a given country on a scale of 0 to 1. The value for each
Table 5. Analysis of variance of web metrics
Factor df Mean square F p Null
Clicks 12 0.016 2.271 0.007 Reject
Impressions 12 5437.158 6.330 0.000 Reject
Costs 12 0.009 1.229 0.256 Keep
Average Position 12 0.000 18.745 0.000 Reject
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country in terms of education was multiplied by 5, which is often the upper level for
NVQs in the UK, which was used in the earlier study(Bishop, 2014a). The values
derived seemed comparable with the earlier study. Intelligence was calculated by
modifying the literacy rate provided by the OECD for each country. The median of
all the countries in the data set was used for the 100 baseline and the other countries
calculated in relation to that. The number of rooms was calculated using the OECD
variables of the same name.
What is noticeable from Table 7, is that the countries with the highest impressions
are generally associated with low levels of productivity. A BBC investigation found
that many of the likes on pages are bogus, and can be linked to the least prosperous
of countries. It could therefore be assumed that the high numbers of impressionscould be linked to the fact that many websites in emerging economies are set up
with bogus content for the sole purpose of raising revenue from contextualised ad-
vertising where those who click the adverts have no actual interest in what is being
advertised, but only click because doing so earns the website concerned money.
This on the one hand proves that considering geo-demographic factors in choosing
outlets for advertising, but on the other hand might suggest datasets collected from
online advertising might not be entirely reliable as it cannot be guaranteed they
represent genuinely interested parties.
Table 6. Advertising and Internet access data for 13 OECD countries (order by ad
expenditure)
Country
Online Ads
(USD 1/100 ofa million)
Internet
Access(Percent) Impressions Clicks Position Cost
United States 324.79 78.70 3.25 0.003 4.41 0.003
Japan 109.74 80.90 6.67 0.006 2.32 0.001
United Kingdom 69.98 82.50 8.15 0.016 4.06 0.018
Germany 51.06 83.90 6.44 0.000 3.78 0.000
Korea 36.12 84.00 22.34 0.027 2.00 0.017
France 28.42 81.70 6.78 0.000 3.16 0.000
Spain 13.86 69.10 12.38 0.011 2.96 0.015
Poland 7.39 67.00 11.89 0.010 2.24 0.000
Switzerland 5.78 86.80 4.89 0.000 4.01 0.000
Hungary 1.50 60.80 17.43 0.000 2.17 0.000
Portugal 0.43 57.90 14.37 0.020 2.79 0.020
Mexico 38.70 18.73 0.031 2.35 0.013
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Productivity and Internet Access: Mexico (Lowest) v Switzerland
(Highest)
In terms of productivity Mexico was the lowest at $23.68 per person and Switzerland
was the highest with $135.83 per person. In terms of Internet access, Switzerland was
the highest with 86.8 per cent of people having access and Mexico was the lowest
with 38.7 per cent of its people having access to the Internet. As can be seen from
Table 8, there was a significant difference (p=<0.001) between Mexico (M=2.35)
and Switzerland (M=4.01) in relation to average position, and with a t-score of
3.829, it was acceptable to reject the null. There was no significant difference in
impressions (p=<0.033) between Mexico (M=18.73) and Switzerland (M=4.89),
nor with clicks (p=<0.005) between Mexico (M=0.04) and Switzerland (M=0.00).
Equally, there was no significant difference (p=<0.037) in relation to cost between
Mexico (M=0.01) and Switzerland (M=0.00). It was therefore not possible to reject
the null in these cases.
The significance of average position in relation to Internet access might be
simple to explain. The average position of the advert in Mexico was 2.35, but in
Switzerland it was 4.01, which might reflect the fact that as more people are sub-
scribed to the Internet in Switzerland (86.8%) compared to Mexico (38.7%) then
Table 7. Education and economic data (sorted by highest impressions)
Country Impressions Clicks
Productivity
(USD Per
Person) NEETs Education Intelligence
No
Rooms
Korea 22.34 0.027 41.28 8.80 4.67 105.31 2.97
Mexico 18.73 0.031 23.68 9.60 3.63 99.36 3.88
Hungary 17.43 0.000 27.29 25.90 4.33 105.31 0.38
Portugal 14.37 0.020 39.93 38.50 3.70 101.59 4.30
Spain 12.38 0.011 72.04 51.60 4.37 104.04 4.57
Poland 11.89 0.010 27.66 27.00 4.11 105.74 3.56
United
Kingdom 8.15 0.016 73.64 20.60 4.08 106.27 4.61
Canada 6.80 0.023 97.65 13.80 4.64 106.06 1.08
France 6.78 0.000 88.83 25.10 4.35 106.27 3.68
Japan 6.67 0.006 94.23 6.90 4.42 106.27 3.91
Germany 6.44 0.000 75.75 8.10 4.60 106.16 4.00
Switzerland 4.89 0.000 135.83 7.90 4.36 106.16 4.32
United States 3.25 0.003 102.50 16.10 4.70 106.16 4.65
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the number of ads displayed will be higher, meaning many will be lower down the
list in Switzerland where there is likely to be more advertisers than in Mexico.
Productivity in Switzerland ($135.83 per capita) is significantly higher than Mex-ico ($23.68 per capita), which may also be a factor in why impressions are higher
in Mexico, where revenue from adverts will be more important. No data on the
amounts spent on online advertising were available for Mexico, but if one considers
Hungary, which has a similar productivity ($27.29) to Mexico ($23.68) as well as
having similar numbers of impressions ($17.43) to Mexico ($18.73) then their
online advertising expenditure is likely to be as low ($150m). Compared to Mexico,
Switzerland’s spending is phenomenal ($578), and the fact that costs of advertising
is higher in Mexico, might suggest that crowd-finders would make a loss by adver-
tising there.
Online Ad Expenditure: Portugal (Lowest) v United States (Highest)
The United States had the highest amount of annual online ad expenditure with
$32,479,000 dollars, and Portugal was the lowest, with $42,800 of online ad expendi-
ture. Table 9 shows that in the case of impressions there was a significant difference
(p=<0.001) between the United States (M=3.25) and Portugal (M=14.37) in terms
of impressions with a suitable t-score of -6.624. Equally there was a significant dif-
ference (p=<0.001) between Portugal (M=2.79) and the United States (M=3.25) interms of average position with a t-score of 6.533. There was no significant difference
(p<0.078) between the United States (M=0.06) and Portugal (M=0.02) in relation
to clicks as can be seen from Table 9. Equally, there was no significant difference
in terms of cost as although there was a p-value of less than 0.003, the t-score of
0.002 was not enough.
The evidence from Table 9 that the QPress advert was in position 4.41 on aver-
age in the United States, compared 2.79 in Portugal is probably evidenced by the
fact that advertising spending in the USA is nearly 800 times higher than in Portu-
gal. That is because the more advertisers then the greater the position value due to
Table 8. Comparing Mexico’s Internet access rate with Switzerland’s using Big
Data metrics
Metric Mexico (M) Switzerland (M) t-score p-value
Impressions 18.73 4.89 -1.985 0.032
Clicks 0.04 0.00 -1.389 0.004
Average Position 2.35 4.01 3.829 0.000
Cost 0.01 0.00 -1.044 0.036
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The Role of Geo-Demographic Big Data
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the advert being further down the page. The fact that the number of impressions
was higher in Portugal (M=14.37) than the United States (M=3.25) might also be
reflective on this fact – the fewer advertisers that exist in a given region then themore likely an advertisement is to be shown near the top. Portugal’s productivity
39.93 and the United States’s is 102.50, which might explain why the average posi-
tion for adverts in Portugal is higher than in the USA. The fact that Portugal has
higher impressions might reflect the fact that the websites located there are more
dependent on website income, or that because the online advertising market in
Portugal is lower then there is a greater chance of adverts being explained. Indeed,
Portugal spends only $40m on online advertising compared to the USA, which
spends $32.5bn. The fewer people that are seeking to advertise in an economy, then
the more likely adverts are to be displayed in that economy’s websites, thus pushingthe impressions up.
NEETs: Spain (Highest) v Japan (Lowest)
As there was no dedicated OECD indictor for youths not in education, employ-
ment or training (NEETs), the available one of youth unemployment was used in
its place. The term NEETs will still be used for analysis purposes. The country
with the highest number of NEETs was Spain with 51.6 per cent of youths being
unemployed, and the country with the lowest was Japan with only 6.9 per cent ofyouths being registered as unemployed. As can be seen from Table 10, in the case
of clicks there was a significant difference (p=<0.001) between Spain (M=0.11)
and Japan (M=0.03) with a t-score of 2.581, it was safe to reject the null. It was
decided to keep the null due to insignificant differences in the case of impressions
(p=<0.026), average position (p=<3.165) and cost (p=<1.256).
As can be seen from Table 10, the number of clicks for Spain (M=0.11) was
significantly higher than Japan (M=0.03). Linking this to the metric of youth un-
employment, such as those not in education, employment or training, could be
conceptually challenging, even if statistically significant. Spain has a higher number
Table 9. Comparing Portugal’s online ad expenditure with the United States’ using
Big Data metrics.
Metric Portugal (M) United States (M) t-score p-value
Impressions 14.37 3.25 -6.624 0.000
Clicks 0.02 0.06 1.879 0.077
Average Position 2.79 4.41 6.533 0.000
Cost 0.02 0.00 0.002 0.002
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of NEETs in the form of 51.6 per cent youth unemployment, compared to Japan,
where youth unemployment is 6.9 per cent. It has been argued that advertising on
social media like Facebook is a cost-effective method of recruiting youth from awide population (Chu & Snider, 2013) . However, a 2012 investigation by the Brit-
ish Broadcasting Corporation found that many clicks on Facebook are done by
people with fake accounts. It could therefore be that some of these clicks are down
to trying to raise revenue for a website on which they are displayed to raise money
for that website, and this may be common in geographical regions where there is
poverty.
Even so, the results may be more related to the fact it was advertising a crowd-
funding project. Even though it has been shown that entrepreneurial activity fell in
Spain as a result of the global recession, entrepreneurship out of necessity increased(del Rio et al., 2014) . A research study into 521 Spanish undergraduate design
students, found that they demonstrate a high entrepreneurial intention (62%) and
that attitudinal factors outweighed the students’ self-perceived inability to develop
their own businesses (Ubierna et al., 2014) . It could therefore be the case that
young people are more likely to take risks with crowd funded projects where they
anticipate future returns.
Room in House, Education: Mexico (Lowest)
v United States (Highest)
In terms of rooms in house, Mexico was the lowest (M=3.88) and the United States
was the highest (M=4.65). The same was the case with education outcomes, with
the United States being highest (M=4.70) and Mexico being the lowest (M=3.63).
There was a significant difference with regards to impressions (p=<0.001) and
average position (p=<0.001). In the case of impressions it would be suitable to
reject the null as there was a t-score of -9.887 and Means of 18.73 for Mexico and
3.25 for the United States (see Table 11). In the case of average position, the sig-
nificant difference could be seen between Mexico (M=2.35) and the United States
Table 10. Comparing Spain’s percentage of NEETs with Japan’s using Big Data
metrics.
Metric Spain (M) Japan (M) t-score p-value
Impressions 12.38 6.67 1.737 0.025
Clicks 0.11 0.03 2.581 0.000
Average Position 2.96 2.32 3.164 3.164
Cost 0.01 0.00 1.255 1.255
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(M=4.41) with a t-score of 6.003, meaning it was safe to reject the null. There was
no significant difference for clicks (p=<0.210) in relation to Mexico (M=0.04) and
the United States (M=0.06), and nor was there a significant difference in relationto costs (p=<0.015) for the United States (M=0.00) and Mexico (M=0.01), which
an insignificant t-score of -1.269.
It is known that in Mexico, the number of rooms in a house is indicative of social
and economic status more widely (López-Feldman, 2014; Mora-Ruiz et al., 2014).
In Mexico, the size of the house and the number of rooms mould the number and
type of activities people can do, and the relationship with those outside of the house
is also connected with positive life experiences (Landázuri et al., 2014) . It has been
found that the highest numbers rooms equated with areas with the lowest productiv-
ity and highest levels of trolling (Bishop, 2014a). Even though not a significantdifference, the mean number of clicks were higher in the United States even though
the number of impressions were nearly six times greater in Mexico. The t-score for
impressions (i.e. -9.887) by being a negative value would suggest instead high
number of impressions is equated with low levels of education and room numbers.
This, taken with the number of clicks, would suggest that those in Mexico are less
prone to ‘feed the troll’ in the form of advertisers, which may be down to not being
able to afford the product advertised. However, as QPress is marketed at academics,
it might simply be that low education outcomes (3.65 out of 5) would lead to little
interest in QPress’s functions. The reason the average position is higher in theUnited States may be because there is more completion for advertising space in the
US, or simply that QPress is advertising for the same areas as other products and
services.
Intelligence: Mexico (Lowest) v Japan (Highest)
Even though the numbers of impressions for Mexico (M=18.73) are higher than
Japan (M=6.67), because the t-score is negative (t=-3.163) it suggests that a
higher number of impressions is linked to lower intelligence (i.e. literacy) and not
Table 11. Comparing Mexico’s rooms in house and education outcomes with the
United States’ using Big Data metrics
Metric Mexico (M) United States (M) t-score p-value
Impressions 18.73 3.25 -9.887 0.000
Clicks 0.04 0.06 0.630 0.209
Average Position 2.35 4.41 6.003 0.000
Cost 0.01 0.00 -1.269 0.014
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higher intelligence. One might expect the opposite – for searches that would call up
an advert on QPress to be linked with more academic audiences. One might there-
fore want to consider whether it was the crowd-funding aspect that draw people to
the advert. Mexico is associated with micro-financing more as a recipient than asan investor (Smith et al., 2014), but the relative poverty in the region might mean
necessity entrepreneurship would be higher. Japan is associated with several high
profile crowd-funding initiatives, and micro-financing is an accepted practice
(Ikeda & Marsumaru, 2012) .
Mexico’s productivity ($23.68 per capita) is lower than Japan’s ($93.23 per
capita), which might explain why the impressions for Mexico are nearly triple Japan’s.
Mexico needs the funding due to its low geo-demographic figures and it might be
websites are being set up for the sole purpose of extorting funds from advertisers
who have not optimised their advertising campaigns. The fact that a cost of an advertin Mexico is significantly lower than Japan, which has higher intelligence, might
suggest it is not the most optimal market for targeting crowd-funded schemes, which
want to raise funds and not expend them.
GENERALISING THE DATA
This chapter has so far explained the differences between countries in terms of the
geo-demographic data associated with them. This section aims to put this togetherto show how in the advertising for QPress findings can be used to further its devel-
opment, which might be generalised to other contexts.
Figure 2 shows the factors that are most associated with whether impressions,
clicks, average position, and cost are high or low. A low number of impressions
can be seen to be associated with countries with high education attainment and
lowest intelligence, which may appear contradictory. Conversely, a high number
of impressions were associated with low numbers of rooms in housing and low ad
expenditure for a country. This could be because low ad expenditure means that
Table 12. Comparing Mexico’s Intelligence levels with Japan’s using Big Data metrics.
Metric Mexico (M) Japan (M) t-score p-value
Impressions 18.73 6.67 -3.163 0.001
Clicks 0.04 0.03 -0.292 0.560
Average Position 2.35 2.32 -0.183 0.066
Cost 0.01 0.00 -1.760 0.000
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one’s online ad is likely to appear higher up the page, or more frequently, becauseless people are advertising.
In terms of clicks, a high number of clicks is associated with a high number of
young people classed as NEETs. It is known that online adverts are more likely to
be clicked on by those who develop, or have already developed, strong brand aware-
ness (Dahlen & Bergendahl, 2001) . It is a fact that online ads that offer high in-
volvement products as opposed to low involvement are also more likely to be clicked
on (Dahlén et al., 2000) . The advert for QPress shown in Figure 1 by referring to
“Invest in QPress” clearly suggests an amount of involvement will come from the
activity. There is, however, known to be an amount of cynicism about the actualengagement of young people when it comes to online advertising, which is seen as
representing the commercialisation of the medium (Loader, 2007). Other reasons
may be that because young people are out of work, they are more likely to be inter-
ested in opportunities to make money, such as from investing in QPress as the online
advert displayed encouraged. The fact that few other factors were significantly as-
sociated with clicks might suggest that advertising schemes based on clicks are least
likely to be effective in achieving a return on investment. With some advertising
Figure 2. Geo-demographic factors associated with online advertising metrics.
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initiatives being based on pay-per-interaction, such as Pages or Posts that have been
‘boosted’ on Facebook, or those banners available on Tradedoubler requiring prod-
ucts to be purchased before fees are paid to the publisher, then the pay-per-click and
pay-per-impression models will likely become obsolete, as such methods are opento abuse, where they may be viewed or clicked on by people who have no interest
whatsoever in what is being advertised.
In terms of average position, a place lower down the screen was associated with
high education and low productivity, whereas being higher up the page in terms
of average position is associated with countries with a high number of rooms per
house, high Internet access and where low ad expenditure is the norm. Average
position of an advert is an important issue in having an effective online advertising
campaign (Rutz & Bucklin, 2011). Knowing the position of a given keyword can
help one know whether to focus on it (Rutz et al., 2012) . For instance, a low averageposition could mean one has a lot of competitors, whereas a high average position
could mean that one might not be marketing to the right people.
In terms of cost, the high the cost then the lower that country’s average intelli-
gence. It is known that those who randomly surf the Internet are more likely to click
on banner adverts than those who are being more purposeful, such as information-
seekers (Li & Bukovac, 1999) . On this basis it is likely that the view that those
who do generic searches have little brand awareness (Rutz & Bucklin, 2011) might
be true of those from more deprived areas, who might not have awareness of what
the product being advertised actually is.
IMPLICATIONS AND FUTURE RESEARCH DIRECTIONS
This study has shown that it is possible to combine national data on countries with
individual observations in order to understand social factors, such as Internet ac-
cess, education and intelligence. One might argue that in case of geographical fac-
tors, there are a number of interacting variables in the dataset used. This could be
generalised to conclude that in order for Big Data studies to be effective that theyneed to amalgamate with other data sources, including linked data, as an essential
component of providing an overall picture of the social phenomenon being studied.
The study has presented a model for understanding the links between online advert
metric and geo-demographic data. Future research will have to uncover whether this
relates online to the advertisement associated with QPress (Figure 1), or whether it
can be applied more generally to other crowd-funding projects.
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DISCUSSION
Big Data is the use of datasets that are too big for traditional business analysis tools
used in industry. This chapter has explored the role Big Data can play in analysingthe effectiveness of crowd-funding projects, using the data from such a project,
which aimed to fund the development of a software plug-in called ‘QPress.’ Using
an ANOVA, the website metrics of impressions, clicks and average position, were
found by this chapter to be significantly connected with geographical factors. To
understand these further, they were combined with other country data to perform
t-tests in order to form a geo-demographic understanding of those who are displayed
advertisements inviting participation in crowd-funding.
The question as to whether it was possible to replicate the findings of an earlier
study now has an answer. It appears clear that the factors such as productivity,number of rooms in house, education, intelligence and NEETs, are indeed impor-
tant to understanding what affects the extent to which an online communication is
provocative. The study looked not at regions as with was the case with the earlier
study, but countries, and it was still found that these facts play and important part
in understanding the geo-demographics that exist and are measurable in relation to
human behaviour.
The chapter has presented a model linking the geo-demographic factors identi-
fied with the online advertising matrix. It shows that a high number of impressions
is associated with low rooms per house and low ad expenditure. It also shows thathigh clicks are associated with high numbers of young people not in education,
employment or training (NEETs), and that a high cost campaign is associated with
lower intelligence. It found that the average position of an online advert is low ad-
vert expenditure, high rooms per house and high Internet access, while low average
position is associated with high education outcomes and low productivity.
It can there be concluded that an online advertising campaign, like the one for
the crowd-funded application called QPress, has its success dependent on geo-
demographic factors. It is clear that when considering how to advertise to a locality,
these will have to be taken into account. When advertising to countries with lowproductivity and education outcomes, an advertising method based on cost-per-
impression or cost-per-click would not be the most effective option, due to it being
more likely they will be received by websites that’s are clicked on by people with
little interest in what is being advertised. Methods based on cost-per-interaction,
such as where an ad is only paid for when a person buys from a website, leaves a
comment or likes a post, would be most suitable to these economies. Cost-per-click
models would be most suited to geographies where productivity is high, along with
education outcomes and intelligence being the same. This may be because people in
these economies are least likely to click on adverts, meaning a cost-per-impression
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model would have least return on investment. Cost-per-impression models seem to
be most suited to developed economies, such as Japan, Canada and the USA for the
reason that the number of impressions is low, but number of clicks is high. These
economies have the highest spending on online advertising this results in fewerimpressions and greater competition for a good average position. It is therefore
necessary for advertisers to know their target market as bidding high on a keyword
most will search on to get higher up the page may pay off more than bidding on
many keywords of little relevance.
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KEY TERMS AND DEFINITIONS
Appalachia: A geographic and cultural region of the Mideastern United States.
The population in media is portrayed as suspicious, backward, and isolated.
Big Data: Big Data is the term used to describe information which is of a form
that it is difficult to analyse using traditional business software or where a data col-
lected for one purpose is then used for another to improve a business’s offerings.
Clicks: The number of times an advert has been clicked on by a user on a given
website(s).
Average Position: The extent to which an advert is offset from the top of the
advert stream where it is competing for the top spot with other advertisers, usually
based on a bidding price.
Google Ads: A platform that enables business to advertise on Google websites
and those websites that Google has agreed for its adverts to be displayed on.
Impressions: The term that refers to how many time an advert has been displayed
on a given website(s).
OECD: An international economic body whose data is used to understand the
nations it covers.
QPress: A software application that allows for the collection and exporting of
Q-methodology q-sorts via the Internet.