Personalizing videos to improve fundraising: evidence from reward-based crowdfunding

Purpose Drawing on integrated insights from signaling theory and the cognitive theory of multimedia learning, this study investigates the effect of video personalization on crowdfunding performance. “Video personalization” is defined as information presented in a video in a way that is designed to promote the feeling of being and interacting with others. This study also aimed to examine the moderating effects among various signals of video personalization. Design/methodology/approach This study constructs a theoretical model of how video personalization affects crowdfunding performance through an integrated theory lens. This study measures several signals of video personalization, namely, first-person wording (FPW), second-person wording (SPW), asking questions and talking to the camera. The direct and moderating effects of video personalization on crowdfunding performance are examined by using 2,858 crowdfunding projects on Kickstarter. Findings This study revealed that using SPW, asking questions and talking directly to the camera positively impact crowdfunding performance, while talking to the camera attenuates the positive effect of using SPW and asking questions with respect to funding amounts. Originality/value This study contributes to the literature on resource mobilization in crowdfunding by examining how video personalization impacts resource mobilization in a crowdfunding setting. The findings extend signaling theory by broadening its boundaries. This advance is accomplished by integrating insights from cognitive science into signaling theory. This study also contributes to cognitive theory in multimedia learning by identifying novel ways to personalize videos and by broadening that work to a novel empirical context, entrepreneurship.