When it comes to the world of finance, timing and data-driven decisions are everything. Years ago, investors and business professionals used traditional media, such as newspapers, or even their own connections to get access to information. However, the emergence of numerous social media platforms led to countless other opportunities to get informed and make better decisions. These are the top five things to know about public profile data!
What is Public Profile Data?
Public profile data refers to professional social media sites, such as LinkedIn, on which professionals create business-related profiles. These are used to connect businesses with potential customers, partners, and even skilled workforce. These company profiles are displayed on search engine results. At the same time, LinkedIn also has a directory of companies where interested parties can find all the companies with a profile on the platform.
LinkedIn is one of the best social networking platforms for individuals. This is because investors and businesses have the opportunity to easily connect with other individuals from their industry. As you might expect, this is possible by accessing public profile data to identify other businesses or individuals that could help you gather better insight into the industry. Even more, LinkedIn has the significant benefit of being only professionally oriented.
As a result, public profile data offers you all the information you need to find like-minded people with the same objectives. Additionally, you can use this information to understand better certain stocks, products, or how the general market behaves.
Both businesses and investors can analyze public profile data to carry out due diligence. For instance, LinkedIn and Facebook, along with other social media platforms, allow you to analyze both individuals and businesses, industry influences, and more. As an investor, you can examine active groups and follow the right individuals that will keep you up to date, so you can make the right timely decisions.
Social Media Impact on the Investment World
So far, you have probably started to gauge just how important public profile data have become. However, this extent is much more impressive than this. For instance, Thomson Reuters measures brand perception by analyzing 4.5 million social media platforms and news sites. At the same time, Arthur O’Connor, while being a student at Pace University, concluded that 99.95% of stock price fluctuations could be associated with sentiment changes that occurred on Facebook. In other words, the increases or decreases in share prices could be explained by the number of likes on Facebook in the same period.
More and More Investors Use Social Media Data
According to Provoke Media, the use of social media data has reached unbelievable peaks. More specifically, the Digital Investor Survey looks into investor behavior related to digital and social media platforms. The study was conducted in 2019 and concluded that 98% of all buy- and sell-side investors used digital sources for research and investigation purposes.
Additionally, up to 88% of investors used this online information to make investment decisions.
More than half of investors stated that they use social media platforms to stay up to date with what chief executive officers say, while approximately 60% of sell-side investors use these platforms to stay connected with them. As a result, investors consider that connecting with CEOs is of crucial importance – and this can be done easily using social networking platforms, such as LinkedIn and Facebook.
Up to 63% of investors use LinkedIn to conduct their research, while Twitter comes in next with 55% of all investors using it to collect information. Even more, it was concluded that businesses lacking a strong digital presence and public data on social networking sites create communication risks for investors. Public profile data and social networking are seen as a method of creating and supporting a healthy investor relation and providing shareholder value.
Implications for Businesses
These important facts about public profile data and other information posted on social networking sites cannot be neglected by businesses, either. More and more firms use digital means to reach out to investors, provide information about companies, and engage with potential funding opportunities, especially on LinkedIn.
This is extremely relevant as digital and social platforms are not only about creating a digital identity for a business. They are now used to tell a corporate or investor story, allowing the leadership to connect directly with stakeholders and converge all of these experiences that help investors make decisions.
All in all, public profile data is a powerful source of information for investors, businesses, partners, and even customers or other parties. Each firm seeks to connect and engage with its stakeholders via social media platforms, so they publish information that may help individuals or institutional investors make investment decisions, mitigate risks, or get a better insight into a specific industry or company.