Sentiment analysis, which is the act of analyzing what people are saying, and more importantly, how they are saying it – by examining the language used and the meanings of people’s words and expressions – has been used to track and interpret many things.
This kind of analysis was once used to track and predict, accurately, the results of the London Mayoral elections in 2012. Thomson Reuters have now teamed up with Twitter to connect the fire hose of sentiment analysis into its Eikon market analysis and trading platform. They are competing with Bloomberg, who also include Tweets into their terminal platform and products.
The media, which has long since acknowledged how useful Twitter is for breaking stories, is now implementing a strategy to integrate breaking news on social media with the way breaking news happens in the news room. Dataminr and CNN have teamed up to mine and supply this information. 300 Entertainment is doing the same for insights into breaking music trends.
Financial services, media and music are all industries which have already found profitable use cases for the vast quantities of consumer related data which social media generates every day.
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But what about consumer spending predictions?
We already have quarterly consumer spending reports produced by the US Bureau of Economic Analysis, which is a useful barometer of overall economic activity.
However, this is more helpful on a macro-scale, and not for deciding quarterly marketing goals. A study by Deloitte commissioned by Twitter, found there was a positive correlation between conversations about games and customers buying games.
The study found that a “30% increase in positive tweets led to 4 times as many sales as a 30% increase in traditional paid marketing spend.” Popular games were analyzed such as Call of Duty Black Ops II and Fifa 2013, where the study found that a 10% increase in positive social media engagement would have resulted in an extra $5.3 and $2 million worth of sales, respectively, during the first 10 weeks.
I’m Thinking Arby’s.
This is compared to other marketing spending, like advertising. Sentiment matters. Positive sentiment generates new revenue. The fast food chain Arby’s found that the results they are getting from positive, real-time sentiment-based engagement on social media, would cost them the equivalent of $22 million in advertising spends.
Customers express what they are thinking and feeling on social media. For brands to have ongoing conversations with their customers it is time to develop strategies which enable them to listen and take action which can positively impact the outcome of any mention on social networks.
Attentive.ly is a social behavior platform for elite marketing teams. We help brands and organizations predict how customers and supporters will behave – even what they might do or buy – from social data. It has been used by over 100 companies and organizations to improve thousands of email marketing and social media campaigns.