Bazaarvoice reveals patterns and relationships at the intersection of social data, traditional media, and business performance, offering new insight to help marketers understand how they can capture and use social data to drive their business.
AUSTIN, Texas – Oct. 18, 2012 – Bazaarvoice (NASDAQ: BV) today released The Conversation Index Volume 5, a new research study that investigates Twitter’s role and influence in brand-related conversations. In the latest volume of its quarterly research series, Bazaarvoice reveals patterns and relationships at the intersection of social data, traditional media, and business performance, offering new insight to help marketers understand how they can capture and use social data to drive their business.
The Conversation Index Volume 5 not only identifies how consumers use Twitter to talk about brands, but also illustrates social's connections to both routine and major events. The report is based on an analysis of 26 million tweets, each of which mentioned at least one of 13 brands from the BrandZ Global 100 Brands list, including Adidas, Clinique, Colgate, Gillette, Hugo Boss, Nike, Pampers, Pepsi, Ralph Lauren, Samsung, Intel, Tesco, and Sony. This data was then compared with more than 8,000 TV and radio mentions, 17 months of stock price data, more than a year-and-a-half of Google search data, and 270,000 pieces of consumer-generated content from online reviews—all for the same 13 brands. Key findings include:
Stock prices move with Twitter mentions
The Bazaarvoice analysis found a remarkably high positive correlation between stock performance and the volume of tweets with brand mentions. In particular:
Twitter evolves from portal to destination
The Conversation Index highlights that Twitter is used differently than other social channels and its data should be used differently, too. For example, a comparison of tweets, search terms, and reviews related to Adidas shows:
Moreover, the proportion of brand-oriented Tweets that include a link is decreasing—from 68% in 2010 and 55% in 2011 to 51% in the first half of 2012—an indication that users are increasingly talking about brands instead of just pointing to what they bought or want to buy.
Brand mentions in Twitter lag behind overall Twitter growth
While content about brands on Twitter is becoming increasingly conversational, the Bazaarvoice analysis shows that less of the conversation is about them:
Search interest doesn’t correlate to Twitter mentions, stock performance, or TV and radio coverage
While it may seem that people tweet what’s top of mind, they’re not tweeting about what they’re searching for. Similarly, unpaid media coverage does not appear to produce a corresponding bump in search interest. To these points, the research found:
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Bazaarvoice brings the voice of customers to the center of business strategy, transforming business performance for nearly 2,000 clients globally, including over half of the Internet Retailer 500 list of the world’s largest retailers, over 20 percent of the Fortune 500, and over one-third of the Fortune 100 brands. Bazaarvoice social software helps clients like Best Buy, Costco, Dell, Macy's, P&G, Panasonic, QVC, Travelocity, and USAA create social communities on their brand websites and Facebook pages where customers can engage in conversations. These conversations can be syndicated across Bazaarvoice’s global network of client websites and mobile devices, making the user-generated content that digital consumers trust accessible at multiple points of purchase. Through Bazaarvoice, manufacturers can also connect directly with consumers on retail sites to answer questions and respond to reviews about their products. The social data derived from online word of mouth translates into actionable insights that improve marketing, sales, customer service, and product development. Headquartered in Austin, Texas, Bazaarvoice has offices in Amsterdam, London, Munich, New York, Paris, San Francisco, Stockholm, and Sydney. For more information, visit www.bazaarvoice.com, read the blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice.