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Bazaarvoice Releases Conversation Index Vol. 5: The Twitter Edition

Stocks in this article: BV

AUSTIN, Texas, Oct. 18, 2012 (GLOBE NEWSWIRE) -- 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.

A chart accompanying this release is available at http://media.globenewswire.com/cache/19098/file/16221.pdf

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:

  • High Twitter volume tends to coincide with high closing price. The same triggers that make stocks move upward tend to make social chatter spike.
  • Somewhat counter-intuitively, the factors that typically send a stock downward tend not to spur an increase in conversations on Twitter. Rather, a brand's buzz on Twitter tends to decline as its stock falls.
  • Product reviews mention price more often when consumer confidence is low. Likewise, price mentions fall as the Dow Industrial Average rises, and they rise as the Dow falls.

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:

  • Twitter users tend to reveal their personal interactions with brands. They mention what "new" products they're wearing "today" and use words such as "my" and "I."
  • Comparison shopping begins in the search box. Top search terms tend to be at the level of product lines and categories. Specific products were mentioned in only three of the top 20 "Adidas" search terms, which also included competing brands.
  • Reviews are a rich social data source for product-level insights. Since they typically are tied to a specific product, reviews tend to focus on specific product qualities, adjectives and other expressions of sentiment.

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.

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