using social media analytics to inform investment decisions 18 september 2012

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 simon@socialadvisors.co.uk

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.