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Online social networks have become the medium for efficient viral marketingexploiting social influence in information diffusion. However, the emergingapplication Social Coupon (SC) incorporating social referral into couponscannot be efficiently solved by previous researches which do not take intoaccount the effect of SC allocation. The number of allocated SCs restricts thenumber of influenced friends for each user. In the paper, we investigate notonly the seed selection problem but also the effect of SC allocation foroptimizing the redemption rate which represents the efficiency of SCallocation. Accordingly, we formulate a problem named Seed Selection and SCallocation for Redemption Maximization (S3CRM) and prove the hardness of S3CRM.We design an effective algorithm with a performance guarantee, called SeedSelection and Social Coupon allocation algorithm. For S3CRM, we introduce thenotion of marginal redemption to evaluate the efficiency of investment in seedsand SCs. Moreover, for a balanced investment, we develop a new graph structurecalled guaranteed path, to explore the opportunity to optimize the redemptionrate. Finally, we perform a comprehensive evaluation on our proposed algorithmwith various baselines. The results validate our ideas and show theeffectiveness of the proposed algorithm over baselines.

Seed Selection and Social Coupon Allocation for Redemption Maximization in Online Social Networks