Social Sentiment Indicator

AAA

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.

RELATED TERMS
  1. Social Media

    Internet-based software and interfaces that allow individuals ...
  2. Michigan Consumer Sentiment Index ...

    A survey of consumer confidence conducted by the University of ...
  3. Market Sentiment

    The overall attitude of investors toward a particular security ...
  4. Sentiment Indicator

    A graphical or numerical indicator designed to show how a group ...
  5. In-App Purchasing

    The purchase of goods and services from an application on a mobile ...
  6. Fast-Moving Consumer Goods (FMCG)

    These are consumer goods products that sell quickly at relatively ...
Related Articles
  1. Professionals

    How Financial Advisors Are Leveraging Social Media

    As financial advisory clients are increasingly turning to social media, wealth managers who aren't following suit risk being left behind.
  2. Entrepreneurship

    How Small Businesses Can Best Use Social Media

    As a small business owner, how much time should you spend social networking? We give you some pointers.
  3. Entrepreneurship

    6 Ways Social Media Helps Home-Based Businesses

    The opportunities given to home-based businesses by the easy accessibility of social media are almost limitless.
  4. Personal Finance

    How Youtube Ad Revenue Works

    Many people make money off of their YouTube videos through ad revenue, but just exactly how does Youtube Ad Revenue work? Quite simply, it turns out.
  5. Entrepreneurship

    Taboola: How "Content You May Like" Makes Money

    Taboola's tagline, “content you may like,” conveys a lot about its business philosophy.
  6. Investing

    What's Next For Alibaba?

    Alibaba excited Wall Street its September IPO on the New York Stock Exchange. Seven months later, the e-commerce giant is still looking to shake things up.
  7. Investing News

    Facebook Money Transfer: Transforming E-Commerce

    Facebook's payment service holds huge prospects for Facebook’s business. Here’s how it works, and how it will impact e-commerce and Facebook's business.
  8. Investing Basics

    Social Media: High Risk, High Potential Returns

    Carefully selecting social media ETFs can provide you with the opportunity to diversify your portfolio and enjoy financial rewards due to user growth.
  9. Personal Finance

    How Instagram Makes Money

    Like many big names in social media, Instagram started as a fun idea without a clear path to profit.
  10. Investing

    Sina Weibo and Twitter: What's The Difference?

    Sina Weibo is China's version of Twitter, but how do the Chinese Twitter and actual Twitter stack up against each other?

You May Also Like

Hot Definitions
  1. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  2. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  3. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  4. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  5. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  6. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
Trading Center