Crowdfunding in Politics
By Bart Everaert and Anthony G. Desmet
2012 UGent
MacrowikinomicsMacrowikinomics.wordpress.com
Crowdsourcing
Crowdfunding
Research environment
GOP RACE
Mitt Romney Ron Paul
GOP RACE
Ron Paul “Crowdfunding-based approach”
Mitt Romney“Traditional campaign”
Evidence for crowdfunding
Source: opensecrets.org
Mitt Romney Ron Paul
CONTRIBUTORS DIFFERENCE
Crowdfunding in reality
• Moneybombs
– Limited time period > "a one-day fundraising frenzy“
– Recent phenomenon > Since Ron Paul
Need for Transparency“We take the trust our donors place in us very seriously and are deeply commited to transparancy and accuracy in our reporting.” (Jesse Benton; RP Campaign Manager)
Importance of openness
• Clear communication
• Democracy benefits
• Report every expenditure >$200
• PAC (Political Action Comittee)
Access: www.opensecrets.org
Expenditure comparison
• Romney has more than twice Paul’s budget
• Romney spends 15% more on advertising
Further on
• Ron paul has 10% more(Campaign direct mail)
• Ron paul spends less on(moneybomb approach)
• Romney spends more on
Internet popularity
Conclusion
• Crowdfunding is not a decisive element yet
• Probably decisive in future « younger generation »
• Positive side effects « It’s as promoting your investment »
• Constant Cashflow
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