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Thursday, December 01, 2011

IBM Demonstrates Social Media Analysis Capability in Predicting Economic Trend

IBM is experimenting on using computer-based analysis on social media's content to make predictive data that can help with business decision making.

Many Chief Marketing Officers are recognizing social media platforms as part of business, however, not many actually is exploring the possibility of gaining insights out of social media's content.

A look back at the last 100 years of shoe fashion trends reveals that heel heights soared during the most prominent recessions in U.S. history. Low-heeled flapper shoes in the 1920s were replaced with high-heel pumps and platforms during the Great Depression. Platforms were again revived during the 1970s oil crisis, reversing the preference for low-heeled sandals in the late 1960s. And the low, thick heels of the 1990s “grunge” period gave way to “Sex and the City”-inspired stilettos following the dot-com bust at the turn of the century.

Now, it seems that in the period of economic downturn, consumers are doing away with heels' height, a trend much attributed to austerity drive. So consumers are going for the more plainer and simplier looks.

The analysis was done by filtering all related contents with policy driven algorithms which have ways to rate popularity and accountability and make use of statistic to derive the conclusion.

It is very mathematical based actually, not much sentimental element.

The IBM project illustrates how sophisticated analysis of social media could be used by manufacturers in planning future products, by retailers in choosing which products to stock, and by marketers in planning advertising campaigns.

Social media analytics is also applicable to politics in order for politicians to understand what people want.

Check out 'IBM Social Media Analysis Points to Lower Heels, Bucking Economic Trend' for details.

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