tag:blogger.com,1999:blog-6187396913880956540.post499153140392972793..comments2024-03-03T09:54:30.438-05:00Comments on Experience: The Blog: No Correlation Between Facebook Fans and Stock Market Performance [Social Media Study]Augie Rayhttp://www.blogger.com/profile/11717746847853655184noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6187396913880956540.post-10513631663420288462012-08-03T10:55:36.997-04:002012-08-03T10:55:36.997-04:00Augie:
Thanks for your response. Yeah, I feel t...Augie: <br /><br />Thanks for your response. Yeah, I feel there's a real need to elevate the overall analysis of social (I like to use the word digital) analysis in terms of the impact of this content on business drivers beyond sentiment, volume and engagement metrics. <br /><br />We're doing some work in this area (in the field of digital health) and will have more to share in the coming months. Thanks again for the dialogue.Fard Johnmarhttps://www.blogger.com/profile/10131875739527426394noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-59846402055669146912012-08-01T11:17:10.333-04:002012-08-01T11:17:10.333-04:00Fard,
I very much agree with you--I would have li...Fard,<br /><br />I very much agree with you--I would have liked to compared Facebook (and Twitter) presence to more than just stock market performance (and do so for far more companies.) Unfortunately, it's just me blogging, and that analysis took me 8 hours as it is. I hope it might inspire someone in the business of research and analysis to get a little more serious about using statistical analysis to tie social media efforts to REAL business results. I am growing tired of seeing "case studies" that are measured in the number of retweets, new fans or Pinterest pins are created. <br /><br />Thanks for the comment!Augie Rayhttps://www.blogger.com/profile/11717746847853655184noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-29272331838858653292012-08-01T09:58:15.698-04:002012-08-01T09:58:15.698-04:00Augie:
I like this analysis, but one of the thin...Augie: <br /><br />I like this analysis, but one of the things that I often think about when analyses of this nature are conducted is whether doing a bi-variate analysis like this really takes into account the full business value of social channels -- especially from an intelligence gathering, product development and customer insights perspective. First, I agree with you that the get more fans arms race is misguided, which is the primary purpose of your post. But, as we move toward leveraging digital channels to enhance business operations and influence other important metrics shouldn't the analysis begin to focus on the holistic benefits of these technologies rather than the impact of one-to-many communications (such as Facebook fans)? <br /><br />I'd also love to get a sense of whether Facebook fans are driving profits at these companies, which obviously has a lot more influence on stock price (revenue), versus audiences who are not being activated or encouraged to do anything that provides short or long-term economic benefits to these firms.) <br /><br />Thanks,Fard Johnmarhttps://www.blogger.com/profile/10131875739527426394noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-49228650860815911452012-07-30T15:34:43.676-04:002012-07-30T15:34:43.676-04:00Thanks Tom.
Terry, I don't think "the mo...Thanks Tom.<br /><br />Terry, I don't think "the more the better" is almost ever a good strategy unless it has a qualification. The more the better--of our actual customers. The more the better--of our advocates. The more the better--of people who want to know more about our brand. Any brand can collect Twitter followers who won't see their tweets or Facebook followers who won't see their posts. <br /><br />But, I'm right with you--the quicker social can become mature in companies and used for multiple, value-focused strategies, the better!Augie Rayhttps://www.blogger.com/profile/11717746847853655184noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-57779995082124175222012-07-30T15:00:00.523-04:002012-07-30T15:00:00.523-04:00As we move to the next phase, we will be able to a...As we move to the next phase, we will be able to appreciate multiple types of strategy. Each will have different objectives and required tactics. The "more the better" does have a role but for a very limited segment of the market. Other strategies will focus on community building, closed group partner communications, and customer communications. Right now we are in that naive stage where we value just one strategic vision, but your blog helps us all to become more mature.Terryhttps://www.blogger.com/profile/17838813951356770058noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-29172207632352648852012-07-30T14:20:18.190-04:002012-07-30T14:20:18.190-04:00Great insight, as always, Augie. I'm using you...Great insight, as always, Augie. I'm using your data to make my case against the arms race with anyone who will listen (which hopefully includes my bosses). <br /><br />Thanks for the ammo. Hope the job search is going well, sir.Tom Buchheimhttps://www.blogger.com/profile/12104845842096332046noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-25172786231309163852012-07-30T12:45:35.086-04:002012-07-30T12:45:35.086-04:00Excellent comment, Terry. You're right--mass m...Excellent comment, Terry. You're right--mass media communications done in a social channel is hardly a good definition of social media marketing. Still, the stupid social media "arms race" continues, and too many social media pros are being complimented or promoted based on their fan counts. <br /><br />While looking for a job, I had a conversation with a fairly well known social media mover and shaker with her own social media company. I was candid in my thoughts of one of the programs they had run, which added TWO MILLION fans to a brand's Facebook page in ONE DAY. I made the same arguments I always do on my blog--about the value of true engagement and real fans versus just giving crap away--and she fundamentally could not see my point. To her, more fans was good under any circumstance--period. <br /><br />To me, this attitude demonstrates there is much we need yet to learn and act upon before social media is done right. And in the meantime, I think man brands are harming themselves, not helping themselves with their poor social media strategies.<br /><br />Thanks for the dialog!Augie Rayhttps://www.blogger.com/profile/11717746847853655184noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-22074753217329443962012-07-30T12:23:46.699-04:002012-07-30T12:23:46.699-04:00nice post augie
My question is whether Facebook ...nice post augie <br /><br />My question is whether Facebook pages with fans in the millions are social media at all. There can be no concept of dialog so why do fans join at all? Is it to get deals, updates or to make complaints. What do brands want - is it just message delivery -mass marketing? If so, we cannot expect any correlation between satisfaction and fan count because this is not the common bond. <br />.Terryhttps://www.blogger.com/profile/17838813951356770058noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-4196682234799404212012-07-30T10:43:51.392-04:002012-07-30T10:43:51.392-04:00Richard,
Thanks for taking the time to comment an...Richard,<br /><br />Thanks for taking the time to comment and consider the analysis. Ironically, I did the EXACT same thing you did as I was composing the blog post. I noted, as did you, that Facebook has the largest fan count, the lowest ACSI rating, and among the worst stock performance, so I yanked it out and found the same thing as you. Yes, it changes the correlations a little, particularly making the fan:satisfaction rating more of a random correlation than a negative one. But, in the end, removing Facebook doesn't have any real impact on the other correlations. <br /><br />Thanks for the thought and consideration on this!Augie Rayhttps://www.blogger.com/profile/11717746847853655184noreply@blogger.comtag:blogger.com,1999:blog-6187396913880956540.post-1481025634264050392012-07-30T10:29:05.471-04:002012-07-30T10:29:05.471-04:00The first thing I noticed looking at this data set...The first thing I noticed looking at this data set is that the fan count is dominated by Facebook who has 30 million more fans than the next nearest brand.<br /><br />Running the analysis without this massive gorilla switches the Fans/ASCI correlation positive (0.1) and the Fans/Stock correlation positive (also 0.1)<br /><br />I was thinking that Fans/Stock correlation would be even more positive once Facebook's dismal stock performance was removed, but this is not the case.Anonymoushttps://www.blogger.com/profile/07658225789294353805noreply@blogger.com