Social Media Popularity and Financial Performance in Ecuadorian Market

  • Pablo Andres Estrada Escuela Superior Politécnica del Litoral
  • Kevin Andrés Ortiz
  • Carmen Karina Vaca

Resumen

Uncovering trends that relates social media and financial indicators can help firms to track the customer perception across time and under- stand better the impact of different events on enterprises’ profitability. We have collected Facebook and Twitter data from 32 Ecuadorian companies categorized in 9 industries to find out relationships between financial performance of a firm and online attention metrics. We aim to design quantitative metrics for industries to measure the activity and attention they attract in social networks, visualize the existing correlations between social attention and financial performance, and predict the revenue of a firm based on the normalized attention it receives on Facebook. We have confirmed that, in Ecuador, the audience engage through Facebook. Thus, Facebook based metrics exhibit a high correlation with financial indicators, specially revenue and advertising expenditure, but we did not find a significant correlation between Twitter metrics and financial indicators. Finally, we employ such metrics to predict the financial performance of a company in Ecuador.

Citas

[1] Bello-Orgaz, G., Jung, J. J., & Camacho, D. (2016). Social big data: Recent achievements and new challenges. Information Fusion, 28, 45–59.
[2] Gallaugher, J., & Ransbotham, S. (2010). Social Media and Customer Dialog Management at Starbucks: a framework for analyzing social media based customer dialog. Mis Quarterly Executive, 9(4), 197–212. Retrieved from http://www.samransbotham.com/sites/default/files/GallaugherRansbotham_Starbucks_2010_MISQE.pdf
[3] Kaske, F., Kugler, M., & Smolnik, S. (2012). Return on Investment in Social Media--Does the Hype Pay Off? Towards an Assessment of the Profitability of Social Media in Organizations. In 2012 45th Hawaii International Conference on System Sciences (pp. 3898–3907). IEEE. https://doi.org/10.1109/HICSS.2012.504
[4] J. Lenskold, J. (2003). Marketing ROI : the path to campaign, customer, and corporate profitability. McGraw-Hill.
[5] Vaca Ruiz, C., Aiello, L. M., & Jaimes, A. (2014). Modeling dynamics of attention in social media with user efficiency. EPJ Data Science, 3. Retrieved from http://www.epjdatascience.com/content/3/1/5
[6] Schumaker, R. P., & Chen, H. (2009). Textual Analysis of Stock Market Prediction Using Breaking Financial News: The AZFin Text System. ACM Trans. Inf. Syst., 27(2), 12:1--12:19.
[7] Yu, Y., Duan, W., & Cao, Q. (2013). The impact of social and conventional media on firm equity value: A sentiment analysis approach. Decision Support Systems, 55(4), 919–926.
[8] Coursaris, C. K., v. Osch, W., & Balogh, B. A. (2016). Do Facebook Likes Lead to Shares or Sales? Exploring the Empirical Links between Social Media Content, Brand Equity, Purchase Intention, and Engagement. In 2016 49th Hawaii International Conference on System Sciences (HICSS) (pp. 3546–3555).
[9] Wang, F., & Xu, B. (2017). Who Needs to Be More Visible Online? The Value Implications of Web Visibility and Firm Heterogeneity. Inf. Manage., 54(4), 506–515.
[10] Attigeri, G. V, Manohara Pai M M, Pai, R. M., & Nayak, A. (2015). Stock market prediction: A big data approach. In TENCON 2015 - 2015 IEEE Region 10 Conference (pp. 1–5). IEEE. https://doi.org/10.1109/TENCON.2015.7373006
[11] O’Connor, A. J. (2013). The Power of Popularity. Social Science Computer Review, 31(2), 229–235. https://doi.org/10.1177/0894439312448037
[12] Bollen, J., Mao, H., Zeng, X.-J., Yu, Y., Duan, W., Cao, Q., … Nayak, A. (2010). Twitter Mood Predicts the Stock Market. Computers in Human Behavior, 15(4), 506–515.
[13] Rivas, A., & Llanos, J. C. (2016). Mapa de poder en la red Ecuador 2015.
[14] Spearman, C. (1904). The Proof and Measurement of Association between Two Things. The American Journal of Psychology, 15(1), 72–101. Retrieved from http://www.jstor.org/stable/1412159
[15] Cha, M., Haddadi, H., Benevenuto, F., & Gummadi, K. P. (2010). Measuring User Influence in Twitter: The Million Follower Fallacy. AAAI Conference on Weblogs and Social Media, 14.
Publicado
2017-11-22
##submission.howToCite##
ESTRADA, Pablo Andres; ORTIZ, Kevin Andrés; VACA, Carmen Karina. Social Media Popularity and Financial Performance in Ecuadorian Market. X-pedientes Económicos, [S.l.], v. 1, n. 1, p. 17-29, nov. 2017. ISSN 2602-831X. Disponible en: <https://ojs.supercias.gob.ec/index.php/X-pedientes_Economicos/article/view/5>. Fecha de acceso: 21 apr. 2021

Warning: Invalid argument supplied for foreach() in C:\inetpub\wwwroot\ojs-jg\plugins\generic\recommendByAuthor\RecommendByAuthorPlugin.inc.php on line 114

##plugins.generic.recommendByAuthor.heading##

##plugins.generic.recommendByAuthor.noMetric##