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How your firm’s Tweets affect its value — both temporarily and permanently

Firm-generated tweets induce both permanent and temporary price impacts, which are linked to the tweet attributes of valence (i.e., positive and negative sentiment) and subject matter (i.e., consumer and competitor orientation).



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Researchers from University of Edinburgh and University of Maryland published a new paper in the Journal of Marketing that examines the impact of firm-generated social media content on firm stock price in real time.

The study, forthcoming in the Journal of Marketing, is titled “Measuring the Real-Time Stock Market Impact of Firm-Generated Content” and is authored by Ewelina Lacka, D. Eric Boyd, Gbenga Ibikunle, and P.K. Kannan.

Firms increasingly follow an ‘always on’ approach to social media marketing and post social media content multiple times during a day. For example, 92% of firms use their Twitter accounts more than once a day, with 42% of those tweeting 1 – 5 times a day and 19% tweeting 6 – 10 times a day. Although marketing managers engage heavily with this contemporary marketing practice, they are unable to demonstrate its immediate contribution to firm’s financial outcomes. 
This new research uses a combination of tweets disseminated by a sample of S&P 500 IT firms and ultra-high frequency trading data to examine the impact of firm-generated social media content on firm stock price in real time. The price impact estimation approach exploits the variance of sub-second level changes in stock price to capture the temporary and permanent stock price impacts of firm-generated tweets. Firms should aim for their firm-generated content to induce permanent price impact because it reflects information about the value of their firm. Temporary price impact can increase transaction costs for investors and the cost of capital acquisition for firms themselves because it reflects uncertainty about firm value. One could say, therefore, that permanent price impact is positive, while temporary price impact is undesirable, and potentially negative, especially if it leads to a higher firm cost of capital.

The researchers find that firm-generated tweets induce both permanent and temporary price impacts, which are linked to the tweet attributes of valence (i.e., positive and negative sentiment) and subject matter (i.e., consumer and competitor orientation).

Tweets reflecting negative or positive valence are consistently linked with a reduction in permanent price impact and an increase in temporary price impact as measured by the variance in stock price. Similar findings are obtained for tweets that only reflect a consumer or competitor orientation, although the impacts are smaller. Thus, both findings indicate that tweets reflecting only valence (positive or negative) or subject matter (consumer or competitor orientation) are associated with an increase in temporary price impact and a decrease in permanent price impact.

“Our results show the importance of interaction effects between tweet valence and subject matter in generating permanent price impact. The average negative and positive valence tweet when viewed through the lens of consumer or competitor orientation generates a permanent price impact, while a competitor-oriented tweet with a negative valence is likely to have the highest permanent price impact,” explains Lacka. From the perspectives of marketing practice and intraday social media marketing strategy design, this is a crucial finding because valence as a singular attribute is associated with decreasing permanent price impact. 
Boyd says “The implications of our study are clear. Investors in financial markets pay attention to firm-generated social media content and their ability to act on information at sub-second levels allows for instantaneous incorporation of social media content.” This is possible because of a new non-human breed of investor that now make most trade-by-trade decisions in financial markets—the so-called algorithmic traders or ‘algos.’ Algos scour many sources, including firms’ social media content such as tweets, for any indication of firm relevant information and act on it, often all within milliseconds. 
Marketing managers need to be aware of this when designing social media posts and campaigns. When social media posts contain what could be referred as “partial information” (i.e., only valence or subject matter), they lack the context that allows investors to make inferences about firm value. However, when, for example, tweet valence is set in the context of a specific subject (e.g., customer or competitor), it, on average, offers valid information that can be acted on by investors. “Our study shows that by carefully incorporating attributes, such as valence and subject matter, marketing managers can design social media content to generate varying degrees of permanent or temporary impact,” Ibikunle points out. 

In conclusion, these results suggest that firms should reflect valence and subject matter in their tweets if their aim is to improve the informativeness of their stocks with respect to firm value.

Kannan says that “By using permanent price impact as a metric to evaluate the long-term impact of tweets, social media managers can design campaigns that have an enduring impact on firm stock price, which should be a desirable outcome for firms.”

Not all intraday tweets will, nor should they, induce permanent impact on a firm’s stock price. Some tweets are aimed at the creation of social media ‘buzz,’ which is similar to the temporary price impacts we examine in this study. Firms can achieve social media ‘buzz’ by disseminating tweets as we show that tweets, in general, mostly generate temporary price impacts. The researchers urge caution, however, because temporary price impacts are linked to larger transaction costs for investors and cost of capital for firms.


3 Tips to market a medical spa

Here are the top 3 tips for how to market a medical spa, and one tool that satisfies them all.



Marketing a medical spa is highly competitive and difficult. realdrseattle, which claims to “get medical spas more valuable leads using the latest marketing strategies”, offers the top 3 tips for how to market a medical spa, and one tool that satisfies them all.

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#1: Transparent Pricing

In today’s market, potential patients do not have the time or patience to schedule multiple consultations until they find the spa with the procedures and price point they want. Instead, if you are straightforward and honest about your pricing, patients will respect your business more, know what to expect, and move on if they would not book due to price. This gives you better quality leads and earns patient trust.

#2: Engagement

People visiting your website do not want to be bored. Your website should be attractive and engaging. Website content is one way to do this, but content will not universally engage everyone. Additionally, most people are likely to skim it. Instead, find ways to engage leads and visitors that keep them on your website longer, entertain them, and lead them to convert.

#3: Utilize Multiple Contact Methods

When you obtain a lead, it is best to capture the main methods of communication: phone number and email. That way, you can reach the lead via call, text, and email, instead of relying on one form of communication. This makes the lead more likely to book and gives them multiple ways to contact you.

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4 Tips to help businesses engage customers beyond Halloween

iStock reveals four tips to help businesses of all sizes to effectively, and authentically, visualize celebrations in their marketing.



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According to Visual GPS, an iStock research initiative, 86% of people still look to celebrate the good things in life – and now, more than ever, people are feeling the strain of social distancing, wanting to feel a sense of connection and belonging with others after many months of isolation.

The most common hopes people shared once transmission for the COVID-19 virus is under control and as vaccination availability increases are travel (53%), dining out/going out for drinks (47%), reviving connections with friends and family (39%), return to live events (38%) and kids resuming normal activities (36%).

“Our concept of celebration is nuanced and ever-changing, with the pandemic further impacting the way we gather and spend time with family and friends,” said Claudia Marks, Senior Art Director, iStock. “The fact is that customer preferences and feelings about celebrations and activities outside of our homes continue to evolve, which is why using visuals that depict our modern realities is crucial to connecting with customers on a deeper level.”

Here, iStock reveals four tips to help businesses of all sizes to effectively, and authentically, visualize celebrations in their marketing:

  1. Showcase connection and community: The importance of relationships with family, friends, partners, coworkers, neighbors and more has only increased in value and meaning since the pandemic. According to iStock research, 70% of people say that the pandemic made them appreciate their personal relationships more. Not to mention, almost three quarters of people (68%) say they appreciate small/local businesses more as a crucial part of their community and 66% want to continue prioritizing supporting small businesses during this time. By focusing on the significance of community and the positive outcomes of the pandemic, businesses can foster a sense of belonging among their customers and find ways to unite us all through the visual content—imageryvideos and illustrations—they use in their holiday campaigns year-round.
  2. Be relevant: With the COVID-19 virus still a risk, businesses should consider a multi-layered approach to appeal to a broad audience. iStock research shows that 31% of people still want to see people wearing masks and 36% want to see people practice social distancing in visual communications. To alleviate differing thoughts on COVID safety measures, focus on showing visuals which depict social distancing and tell stories of security, but also, think about the future and use visuals and messaging which look beyond the pandemic.
  3. Harness the power of video: Statistics shows that video resonates more deeply with customers, with 92% of marketers noting it as an important part of their visual strategy. Though video has traditionally been more expensive and professional quality video creation may seem daunting, businesses can really benefit by integrating video into their marketing strategies, especially during holidays. To ease these barriers, iStock has created a new free, quick and easy video maker that doesn’t require any previous design or editing experience.
  4. Reflect the diversity of your audience: Use visuals that portray real people and real situations. iStock research shows that 72% of people expect businesses to celebrate diversity of all kinds so ensure you are choosing visuals that reflect the broad diversity of people across all ages, genders, sexual orientations, ethnicities, abilities and body types.

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7 Tips to help SMBs strengthen their supply chain

As they seek to find different avenues to secure supply, only 44% of SMBs are getting their shipping and logistic services from a single vendor.



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In the midst of having to navigate waves of COVID-19 and lockdowns, 87% of small to medium-sized businesses (SMBs) have maintained, or spent more, on transportation, logistics, and expediting to overcome shortages — this according to the “Logistics: Heads Up” study from Cargo, and their research partner Phase 5.

The survey of 1,154 small business owners across North America highlighted the fact that COVID is still causing supply chain instability for SMBs. The study also showed that as they seek to find different avenues to secure supply, only 44% of SMBs are getting their shipping and logistic services from a single vendor. This was surprising insofar as past “Heads Up” studies indicated SMBs are very likely to “sole source” services and assets such as financial services and commercial vehicles.

Other findings of the logistics study indicate that 30% of SMBs are open to new logistics partners, 62% are confident they have all the information they need to make the right decisions about their logistics and shipping, and 63% of owners seek advice from employees outside of their purchasing staff.

Toby Stansell, CEO of Cargo, offers the following tips to help SMBs strengthen their supply chain:

  1. Dual/tri-source all critical raw materials, components, and sub-assemblies.
  2. Balance purchase order placements and order volumes between two or more competing suppliers.
  3. Develop a geo-diverse sourcing model and supply network.
  4. Increase your purchasing clout and buying power by joining a Group Purchasing Organization.
  5. Prioritize predictable and reliable availability over marginal cost differences.
  6. Reengineer products and processes to utilize more readily available components, technology, or labor resources and skillsets.
  7. Invest in a simple, cloud-based sales forecasting, demand planning, and inventory replenishment software that can easily interface with your primary suppliers’ systems.

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