The advent of crowdfunding, whereby innovative ideas find financial backing from the collective support of online communities, such as Indiegogo and Kickstarter, has allowed countless projects to become viable in recent years. Many of those projects, while attractive and ultimately successful, may never have garnered support from conventional investors and backers. Of course, not all crowdfunding enterprises are successful, and a study in the International Journal of Electronic Business has looked at how much effect first impressions has on what a campaign might ultimately achieve.
Mathupayas Thongmak of the Thammasat Business School at Thammasat University in Bangkok, Thailand, has focused on Indiegogo as a well-known crowdfunding platform. She points out that to date, the rate of success among crowdfunding campaigns remains relatively low. The present study offers insights that might help putative campaigners develop a more effective strategy for success.
Presentation is almost all when it comes to a successful campaign. Potential backers wading through many project options commonly rely on first impressions to decide whether to investigate a given campaign further. In other words, an attractive thumbnail image, text introduction, and category choice, are vital. Without them, most backers scanning for opportunities will simply swipe left, to use the parlance of dating apps, where such a swipe amounts to a rejection.
Earlier work has looked at the factors that coincide with a successful crowdfunding campaign, but Thongmak has used descriptive statistics, word clouds, tree maps, and hierarchical regression analysis to analyse data from more than 300 campaigns to look at what characterises successful outcomes. It seems that timing is almost everything, but appropriate category choice can affect success rate for campaigners significantly. Moreover, the most likely to succeed are campaigns in the technology and innovation sectors, with health and fitness products featuring prominently, followed by home, travel, and outdoor equipment. It is worth noting that text on a thumbnail image did not affect success rate. As such, Thongmak suggests that campaigners should use their thumbnail image to make their project stand out more from the other images through the choice of a more creative design and colour scheme.
Thongmak, M. (2024) ‘Does first impression count? A look at Indiegogo campaigns on the ‘Explore All Projects’ page’, Int. J. Electronic Business, Vol. 19, No. 2, pp.181–208.