Social Sentiment Indicator

Definition of 'Social Sentiment Indicator'


A measurement based on aggregated social media data that helps businesses understand how they are performing in the eyes of their consumers - what they’re doing right and how they might improve - and gives investors an idea of how the company’s stock might perform. Social sentiment indicators help companies identify trends that they can use to target new customers, develop successful marketing campaigns, create profitable products and services and protect and improve their brand identity and image. Social sentiment indicators also help investors identify information in social media that could cause a stock’s price to increase or decrease in the near future.

Investopedia explains 'Social Sentiment Indicator'


Social sentiment indicators are based on information users post publicly to Facebook, Twitter, blog posts, discussion groups and forums. If the social sentiment indicator shows a negative change in reputation, the company can address the problem before it grows. Companies can also use this information to reduce the burden on customer service email and call centers by addressing questions and problems en masse via social media. Collecting information from social media about how consumers perceive a brand can help companies identify individuals or businesses who have a strong social media influence. By identifying those who are dissatisfied with the brand, the company can reach out, try to remedy the problem and hopefully improve its social sentiment indicator. They can also make contacts with these highly influential individuals with an eye to boosting their brand image in social media.

Social sentiment indicators can also help companies determine how successful a marketing campaign is by analyzing reactions on social media to determine whether they are spending marketing dollars wisely and whether they should pursue similar campaigns in the future. Social sentiment indicators can further identify how consumers feel about competitors and similar products, and companies can use this information to improve their own offerings. Also, by paying attention to what consumers are praising or criticizing about their products and services using social media and other online venues, companies can assess what to expand on and what to drop or change.

Sports and entertainment companies can also use social sentiment indicators that they share with customers to give them a more engaging viewing experience. For example, IBM developed a social sentiment indicator that U.S. Open viewers could use to see the volume and negative or positive trend of tweets about each player, giving viewers a real-time idea of how fellow viewers were perceiving a match.



comments powered by Disqus
Hot Definitions
  1. Benchmark Bond

    A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are almost always used as benchmark bonds. Also referred to as "benchmark issue" or "bellwether issue".
  2. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  3. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  5. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  6. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
Trading Center