This is our second post on how professional communicators can benefit from sentiment analysis. Last week we looked at public relations and today we’ll dig in to IR.
A key challenge for investor relations teams is gaining insight into the sentiment of the investment community. Fortunately with social media and social networks, understanding how your investors and potential investors are feeling on any given day is now possible.
Consider this. You’re in IR and looking to release your quarterly earnings statement. Prior to online monitoring and analysis tools, you would be more or less putting your release on the wire with a less than comprehensive understanding of what frame of mind your audience was in, let alone how your message will be received. Scary thought when your bottom line is showing.
Online media monitoring gives IR professionals the ability to explore and develop a greater understanding of the general attitudes of their investors, gaining insight into the tone of online and social media coverage.
Using an aggregator with automated sentiment analysis like MediaVantage, IR teams can track financial blogs, investor forums, websites and their investor community on Twitter, giving the department the advantage of identifying (and riding) the sentiment of investors. Automated platforms can significantly assist in filtering out the noise via tonality filters (among others) that investor relations pros can leverage directly on their media coverage dashboard.
Financial blogs, and investor bloggers are often the source of lengthy candid reviews, possibly more representative of the general market as they are often written by active investors. Investor relations practitioners can use this information to get a better handle on the sentiment or attitudes of investors and influencers within the stock trade industry.
As an investor relations professional, how do you use sentiment analysis to be more effective in your role? Please comment!
Next week I’ll look at how Analyst Relations can benefit from sentiment analysis.