using social media analytics to inform investment decisions 18 september 2012
DESCRIPTION
Presentation I gave in Sydney to the Australian Alternative Investment professionTRANSCRIPT
USING SOCIAL MEDIA ANALYTICS TO INFORM INVESTMENT DECISIONS
SIMON J. RYAN Business Marketing Specialist@simonjryan
AIMA, Sydney – 18th September 2012
Viral
The number of people that choose to
communicate using social media are
measured in the 100s of millions
million users900
Source: Wikipedia, April 2012
Source: Wikipedia, April 2012
million users500
Source: Quora, January2011
million users490
Source: VK website, August 2012
million users124
Source: Wikipedia, November 2011
million users160
100
480300268
Source: Wikipedia, November 2011
41%… of consumers who use social media
are actually influenced by positive and negative
comments about brands and companies on social
media sites
Relevance
Source: YouGov, April 2012
So we monitor, analyse and report
on our brand, products, customers and competitors
Explanation
www.edfenergy.com/energy-of-the-nation
Result
www.metro.co.uk/olympics/907250-twitters-olympic-mood-beamed-to-world-from-edf-energy-london-eye
We can assess the nature of conversations
We can quantify conversations
Capability
We can estimate the impact on sales
Outcome
Negative sentiment has most influence on sales
Neutral messages carry brand messages – effective for reaching early adoptersPositive feelings are persuasive for brands with have high recognition
Definition
Brands have an incentive to get involved
in the social media process
Brands should positively manage anything
leading to negative situations
Action
• People talk about brands and what they say affects sales
• Social media enables consumers views to reach beyond their immediate networks
• Having an increased effect on sales• Their use of social media allows us to track
and measure what is being said• This information can predict earnings
…earnings drive share price
Conclusion
Thank you
Simon J. Ryan Mobile +447 446 119 778E Mail [email protected]
Twitter simonjryanBlogspot simonjryan
Twitter mood predicts the stock market
Johan Bollen, Huina Mao, Xiao-Jun Zeng
Journal of Computational Science, 2(1), March 2011, Pages 1-8
ResourcesHarnessing the power of the web in quantitative investing
Rochester Cahan/Yin Luo/Miguel-A Alvarez/Javed Jussa/Zongye Chen/Sheng Wang
https://www.recordedfuture.com/assets/SignalProcessing20111118.pdf
A dynamic model of the effect of online communications on firm sales
Garrett P. Sonnier , Leigh McAlister , and Oliver J. Rutz
Marketing Science June 2011 mksc.1110.0642
The junk science behind the ‘Twitter Hedge Fund’
Ben Shneiderman et al
http://sellthenews.tumblr.com/post/21067996377/noitdoesnot
This presentation is intended for discussion only. The views expressed accurately reflect the personal views of the author, Simon Ryan. The author has not and will not receive any compensation for providing a specific recommendation or view in this report.