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In today’s data-driven world, sentiment analysis is a key resource for market researchers looking to better understand public opinion across various sectors. By analyzing sentiment trends, businesses can gain a clearer picture of public perception, track competitors, and spot shifts in the market. This article explores practical ways sentiment analysis can be used, from monitoring competitors and predicting financial trends to measuring public opinion and identifying risks. These insights help businesses stay responsive and make more effective decisions based on sentiment data.
How Sentiment Analysis Can Transform Your Market Research
By leveraging advanced NLP algorithms, sentiment analysis deconstructs public discourse into quantifiable sentiment scores, typically categorized as positive, negative and neutral. This numerical scale allows machines to interpret and categorize sentiment in a way that can be easily processed by analysts. Such granularity of attitude detection allows companies to quantify and interpret public perception surrounding their brand, products, or market trends.
1{
2"title": "Awash in oil money, Guyana promises cash, free tuition and other perks ahead of election",
3"author": "Associated Press",
4"link": "https://www.dailymail.co.uk/wires/ap/article-13951347/Awash-oil-money-Guyana-promises-cash-free-tuition-perks-ahead-election.html",
5"description": "GEORGETOWN, Guyana (AP) - Guyanese President Irfaan Ali announced several perks ahead of national elections next year, including free college tuition and a...",
6"content": "GEORGETOWN, Guyana (AP) - Guyanese President Irfaan Ali announced several perks ahead of national elections next year, including free college tuition and a one-time cash payment of nearly $1,000 for every household in the oil-rich South American country.\nAli also promised to cut power bills by half and to increase the monthly minimum wage from $350 to $500 starting next year as he addressed Parliament during a special session late Thursday, noting that the recently wealthy nation of nearly 800,000 people can afford to help residents via public aid programs.\nDuring a press conference after the session, Vice President Bharrat Jagdeo said Guyana´s budget can easily absorb the one-time cash grant to the country´s estimated 264,000 households.\n\"We have a $22-billion-dollar economy now,\" he said.\nGuyana was once one of the poorest countries in South America despite large reserves of gold, diamonds and bauxite. But it has been awash in money after a consortium led by ExxonMobil discovered the first major oil deposits in May 2015 off the country´s Atlantic coast.\nProduction began in December 2019, with an output of some 645,000 barrels a day expected to soar to 1.3 million by 2027.\nIn 2022, Guyana´s GDP grew by more than 60%, the highest real GDP growth worldwide that year, according to the International Monetary Fund.\nFree tertiary education had been in place since the mid-1970s but was discontinued in the early 1990s under pressure from the IMF.\nThe offer of free university tuition is one of several new measures to tackle the high cost of living, Jagdeo said.\nSince becoming oil-rich, Guyana´s government has launched infrastructure projects including the construction of hospitals, hotels, schools, highways, its first deep-water port and a $1.9 billion gas-to-energy project expected to lower power bills.",
7"nlp": {
8 "theme": "Business, Economics, Finance, Politics",
9 "summary": "President Irfaan Ali announced several perks ahead of national elections next year. They include free college tuition and a one-time cash payment of nearly $1,000 for every household in the oil-rich South American country. Guyana was once one of the poorest countries in South America despite large reserves of gold, diamonds and bauxite. ExxonMobil discovered the first major oil deposits in May 2015 off the country's Atlantic coast and production began in December 2019.",
10 "sentiment": {
11 "title": 0.9479,
12 "content": 0.9601
13 }
14}
By monitoring news, analysts can measure the immediate reaction to product launches or marketing campaigns. For example, companies can track the coverage in major news outlets to assess whether a product’s reception skews positive, negative, or neutral.
Coca-Cola’s #ShareACoke campaign is a strong example. By analyzing media reports, they identified which elements, like personalized bottles with common names, resonated well with consumers, generating positive coverage and engagement. Coca-Cola then amplified these aspects in their advertising. If issues like limited name availability received negative attention, the company could quickly adjust by refining their communication or expanding the range of names. These swift, data-driven adjustments helped maximize the campaign’s impact, providing insights faster than traditional methods.
Using Sentiment Analysis to Track Competitor Sentiment in Near-Real-Time
Near-real-time competitor sentiment analysis involves continuously monitoring digital discourse, typically with a short delay, to assess public perceptions of market rivals. By deploying machine learning models for sentiment classification, analysts can detect nuanced shifts in competitor reputation. While there may be a latency of several minutes due to news processing and sentiment analysis, this approach still allows companies to stay agile and respond to emerging sentiment trends efficiently. Analysis of news and press releases makes it possible to derive a competitor sentiment index — a critical metric that reflects public opinion on rival brands over time.
For example, a sudden decline in the sentiment score of a competitor like Nike could be an indicator of a public relations crisis — such as a product recall or a controversial marketing campaign. When Nike faced backlash over a flawed sneaker design in 2019, their sentiment score dropped sharply in the days following the incident. Competitors like Adidas could have used this insight to capitalize on the negative sentiment by ramping up their own marketing efforts, targeting the frustrated customer base with messaging around quality and reliability.
Conversely, a significant increase in a competitor's sentiment score could be a red flag signaling a successful campaign or product launch. For instance, Apple consistently sees spikes in positive sentiment around product release events. If a competing brand like Samsung notices a rapid uptick in Apple's sentiment score, it might prompt a reevaluation of marketing strategies to counterbalance the hype. This could mean adjusting the timing of a new product launch or retargeting messaging to highlight areas where the competitor is perceived as weaker.
From News to Insights: Leveraging Sentiment Analysis for Financial Market Predictions
One of the key applications of sentiment analysis in the financial markets is gauging market sentiment toward specific stocks or sectors. For instance, positive news about a company’s earnings or product launches is often reflected in an increase in its stock price, while negative news — such as leadership scandals or declining revenue — can lead to sharp sell-offs. Analyzing the sentiment score of such news articles allows analysts to predict these movements before they fully materialize in the market.
A detailed example of this can be seen in the case of Tesla. In 2020, Tesla’s stock experienced a meteoric rise, partly fueled by strong sentiment in the news and public discourse around the company. Sentiment analysis tools tracked overwhelmingly positive media coverage surrounding Tesla’s continued profitability, successful expansion into new markets, and the growing demand for electric vehicles. By analyzing the positive sentiment in articles from key financial outlets, some traders anticipated the surge in Tesla’s stock price before it reached its peak, positioning themselves early for substantial gains.
By leveraging sentiment analysis of financial news, analysts can gain actionable insights into market movements, giving them the ability to react quickly to sentiment shifts and optimize their investment strategies. This approach bridges the gap between news and market behavior, making sentiment analysis an indispensable tool for predicting financial trends.
For example, an investment firm with significant exposure to Argentine bonds might track negative news focused on Argentina’s economic stability. If sentiment analysis detects a spike in negative coverage related to rising inflation, political unrest, or credit rating downgrades, the firm can act quickly to mitigate risk. This could involve selling off part of their Argentine bond holdings or adjusting their positions to hedge against potential losses. By focusing on region-specific negative sentiment, the firm can safeguard its portfolio against adverse events that may impact asset performance.
1{
2"title": "What Boeing's massive financial crisis means for you",
3"author": "Chris Isidore",
4"link": "https://www.msn.com/en-us/money/news/what-boeing-s-massive-financial-crisis-means-for-you/ar-AA1smtrq",
5"content": "Boeing's finances are a multi-billion-dollar problem for the company, its employees, suppliers and airline customers. The good news is that they probably won't affect the average American – well, not very much.\nAfter 33,000 members of the International Association of Machinists went on strike against the company a month ago, Boeing won't be able to deliver all of its planes as promised. That will hurt airlines and could have a modest impact on the number of seats available, especially on domestic flights around the United States.\nFewer seats could mean airlines will be forced to raise fares. But, currently, fares are falling because there is more capacity in the industry than there is demand to fly. Many of the planes not being delivered were likely due to replace older, less efficient planes.\nSo the strike won't limit your ability to fly. The planes owned by airlines are already sold. Just like when the automakers were on strike last year, no one took your Chevy away from you, Boeing planes that are currently in service will remain in service.\nBut Boeing's financial problems, which started long before the strike could hurt the broader US economy.\nBoeing has been hemorrhaging money for more than five years, ever since two fatal crashes of the 737 Max in late 2018 and early 2019 killed 346 people and led to a 20-month grounding of the company's best-selling plane.\nSince that time, Boeing has reported more than $33 billion in core operating losses, and there is no end in sight to the red ink. The strike that started September 13 is adding $1 billion in losses every month to the company's bottom line, according to credit rating agency Standard & Poor's. The problem is the halt of production of the 737 Max has cut off the most important source of funds for the company that gets most of its cash from aircraft sales at the time planes are delivered.\nBoeing is looking to raise up to $25 billion to help it weather the current storm through additional borrowing along with the sale of stock and debt. It is also planning to cut 10% of staff worldwide, or about 17,000 of 171,000 employees, in a cost-cutting move. Those employees will be hurt by the layoffs, as will the 33,000 strikers who will be getting a fraction of their normal salary in the form of strike benefits from the union.\nBoeing's financial problems are bad news for the US economy. It is the nation's largest exporter. And more immediately, business in communities where laid-off Boeing employees and strikers live, mostly in Washington state, could see problems as those people pull back on spending. But the other way that the financial problems would spread beyond Boeing will be the impact of the strike on suppliers. Boeing has 10,000 suppliers, which can be found in all 50 US states. It estimates its own annual contribution to America's economy at $79 billion, supporting 1.6 million jobs directly and indirectly.\nAccording to analysis by Anderson Economic Group, losses by Boeing employees, strikers, suppliers and the company itself, along with local governments, have already reached $5 billion in the first month of the strike.\nBoeing's credit rating is at risk of being downgraded to junk bond status, which would create more financial problems by raising its cost of borrowing. Junk bond status means there's an increased risk of default and perhaps bankruptcy. But even if it is forced to file for bankruptcy, that doesn't mean it will go out of business. It just means Boeing would use the bankruptcy process to shed some of its unaffordable debt and other obligations. Numerous successful companies, including General Motors and most of the nation's airlines, have gone through bankruptcy and gone on to report record profits afterwards.\nAnd it is not likely that Boeing would be forced out of business by its current financial crisis. Boeing and European rival Airbus are essentially the only companies that make the full-size jets that the global airline industry needs. Its place as part of a duopoly essentially ensures its survival.\nFor more CNN news and newsletters create an account at CNN.com",
6"nlp": {
7 "theme": "Business, Economics, Finance",
8 "summary": "Boeing won't be able to deliver all of its planes as promised because of the strike of the International Association of Machinists. The company is looking to raise up to $25 billion to help it weather the current storm. Boeing and Airbus are the only companies that make the full-size jets that the global airline industry needs. Boeing is planning to cut about 17,000 of its 171,000 employees.",
9 "sentiment": {
10 "title": -0.9756,
11 "content": -0.9693
12 }
13}Measuring Public Opinion on Key Industry Issues: The Power of Sentiment Analysis
By systematically analyzing news articles analysts can monitor how specific topics resonate with the public, which can directly inform strategic decision-making.
One of the most effective uses of sentiment analysis is tracking public reaction to industry-specific legislation. For example, in the pharmaceutical industry, new drug regulations or changes to healthcare laws can spark widespread public discourse. By applying sentiment analysis to news coverage, pharmaceutical companies can better understand public sentiment on regulatory changes. News often captures opinion leaders' perspectives and covers public events, such as strikes, helping to gauge overall reactions to these developments.
When the U.S. Food and Drug Administration (FDA) approved the COVID-19 vaccines, sentiment analysis tools quickly highlighted public concerns about vaccine safety and side effects. This data allowed pharmaceutical companies and healthcare providers to address these concerns in their communication strategies, tailoring messaging to build trust and dispel misinformation.
Another strategic use of sentiment analysis is monitoring public opinion around emerging technologies. In sectors such as fintech, AI, or renewable energy, sentiment can offer early indicators of market readiness or resistance. For example, when the concept of blockchain technology first gained attention, there was a mix of skepticism and excitement in public discourse. By tracking sentiment trends across various platforms, analysts were able to observe a gradual shift toward more positive sentiment as understanding of the technology grew. This helped fintech companies fine-tune their marketing strategies, focusing on the benefits of transparency and security, which were increasingly highlighted in positive public discussions.
Furthermore, sentiment analysis can provide critical insights into consumer attitudes toward emerging trends or societal issues. For example, during the rise of sustainability as a critical consumer demand, brands that engaged in sentiment analysis could identify increasing positive sentiment toward eco-friendly practices and products. By correlating these sentiment trends with market data, organizations could prioritize the development of sustainable products and implement green marketing strategies to align with consumer expectations.
How Analysts Can Use Sentiment Analysis to Spot Emerging Risks and Opportunities
Sentiment analysis is key to risk management and opportunity identification, enabling analysts to track public sentiment across digital channels like news outlets. By using techniques such as sentiment classification and trend analysis, organizations can detect early warning signs of crises or seize emerging opportunities.
Using sentiment analysis to monitor sentiment trends allows analysts to identify both risks and opportunities in real time. For example, a sudden uptick in negative sentiment regarding a brand's product can serve as a harbinger of potential reputational damage. This shift is typically detected through sentiment analysis tools that apply lexicon-based approaches or machine learning classifiers. By examining sentiment trajectories, analysts can assess the magnitude of the negative sentiment and correlate it with external events, such as product recalls, negative press coverage, or competitive moves. A prime example is the way United Airlines managed the fallout from the infamous passenger removal incident in 2017. By employing real-time sentiment analysis, the company was able to gauge public outrage and adjust its communication strategy accordingly, aiming to mitigate reputational damage.
Similarly, sentiment analysis can track changes in competitor sentiment to detect risks related to market shifts. For instance, if a competitor suddenly begins receiving more positive attention due to an innovative product or successful marketing campaign, this shift could signal a growing competitive threat. By tracking sentiment spikes, analysts can quickly adjust their strategy to remain competitive. A company like Pepsi, for example, could monitor Coca-Cola’s marketing campaigns to detect when a new product launch is gaining significant traction. Detecting this positive trend early would enable Pepsi to counter with promotions of its own, preventing Coca-Cola from dominating market share.
1{
2"title": "OPEC cuts demand growth forecast again",
3"author": "Reuters",
4"link": "https://tribune.com.pk/story/2502841/opec-cuts-demand-growth-forecast-again",
5"description": "OPEC cuts demand growth forecast again",
6"content": "LONDON:\nOPEC on Monday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year and also lowered its projection for next year, marking the producer group's third consecutive downward revision.\nThe weaker outlook highlights the dilemma faced by OPEC+, which comprises the Organisation of the Petroleum Exporting Countries and allies such as Russia, which is planning to start raising output in December after earlier delaying the hike against a backdrop of falling prices.\nOn Monday, OPEC in a monthly report said world oil demand will rise by 1.93 million barrels per day (bpd) in 2024, down from growth of 2.03 million bpd it expected last month. Until August, OPEC had kept the forecast unchanged since it was first made in July 2023.\nChina accounted for the bulk of the 2024 downgrade. OPEC trimmed its Chinese growth forecast to 580,000 bpd from 650,000 bpd. While government stimulus measures will support fourth-quarter demand, oil use is facing headwinds from economic challenges and moves towards cleaner fuels, OPEC said. \"Diesel consumption continued to be subdued by slowing economic activity, mostly a slowdown in building and housing construction, and the substitution of liquefied natural gas (LNG) for petroleum diesel fuel in heavy-duty trucks,\" OPEC said in reference to August.\nOil held an earlier decline of about 2% after the report was issued, with Brent crude trading below $78 a barrel. There is a wide split between forecasters on the strength of demand growth in 2024, partly due to differences over China and over the pace of the world's switch to cleaner fuels. OPEC is still at the top of industry estimates and has a long way to go to match the International Energy Agency's far lower view.\nOPEC said this year's demand growth was still above the historical average of 1.4 million bpd seen prior to the Covid-19 pandemic, which caused a plunge in oil use.\nFor next year, OPEC cut its 2025 global demand growth estimate to 1.64 million bpd from 1.74 million bpd.\nLibya, Iraq, Russia cuts\nOPEC+ has implemented a series of output cuts since late 2022 to support the market, most of which are in place until the end of 2025.\nThe group was due to start unwinding the most recent layer of cuts of 2.2 million bpd from October, but decided to delay the plan for two months after oil prices slumped. OPEC's report showed production fell in September due to unrest in Libya and a cut by Iraq. OPEC+ pumped 40.1 million bpd, down 557,000 bpd from August. Iraq pumped 4.11 million bpd, down 155,000 bpd but still above its 4 million bpd quota.\nAs well as Iraq, OPEC has named Russia and Kazakhstan as among the OPEC+ countries which pumped above quotas. Russia cut output in September by 28,000 bpd to about 9 million bpd, the report said, citing data from secondary sources such as consultancies. Kazakhstan, however, raised production by 75,000 bpd to 1.55 million bpd.\nThe OPEC report projects demand for OPEC+ crude, or crude from OPEC plus the allied countries working with it, at 43.7 million bpd in the fourth quarter, in theory allowing it room for higher production. Other forecasts suggest less room. The IEA, which represents industrialised countries, sees much lower demand growth than OPEC of 900,000 bpd in 2024. The IEA is scheduled to update its figures on Tuesday.\nOil falls over 2%\nMeanwhile, oil prices declined more than 2% on Monday, wiping out all of last week's gains, as OPEC lowered its 2024 and 2025 global oil demand growth view while China's oil imports fell for a fifth month in a row.\nChina's stimulus plans also failed to inspire investor confidence while markets continued to watch for potential Israeli attacks on Iranian oil infrastructure.\nBrent crude futures were down $1.72, or 2.2%, at $77.34 per barrel by 1618 GMT, while US West Texas Intermediate crude futures fell $1.72, or 2.28%, to $73.82 per barrel. Brent gained 99 cents last week, while WTI climbed $1.18.The dollar also hit a nine-week high on Monday in thin trading. A firmer US currency can hurt demand for dollar-denominated oil from buyers using other currencies.",
7"nlp": {
8 "theme": "Business, Economics, Finance",
9 "summary": "OPEC has revised down its global oil demand growth forecast for 2024 by 1.93 million barrels per day. It is the third downward revision since it was first made in July 2023. China accounted for the bulk of the 2024 downgrade. Oil prices declined more than 2% on Monday, wiping out last week's gains.",
10 "sentiment": {
11 "title": -0.9982,
12 "content": -0.9935
13 }
14}On the opportunity side, sentiment analysis can help companies spot positive trends or shifts in consumer preferences. Consider the rapid growth of plant-based diets. Before plant-based alternatives like Beyond Meat and Impossible Foods became mainstream, sentiment analysis on social media showed growing positive discourse around sustainability, animal welfare, and health benefits tied to plant-based eating. Early detection of this trend allowed food companies to shift product development, marketing, and supply chain strategies to meet the rising demand for plant-based alternatives. Companies that used sentiment analysis to track this positive shift were able to launch products ahead of competitors, gaining first-mover advantage in an emerging market.
Enhancing Business Intelligence Reports with Sentiment Data
Traditional BI reports often focus on hard metrics such as sales performance, market share, customer demographics, or operational efficiency. While these figures are essential, they often miss the emotional and attitudinal context behind consumer behavior and market movements. This is where sentiment analysis becomes a game-changer. By tracking how customers feel about products, services, or brands, businesses can gain a deeper understanding of market sentiment and the underlying reasons behind the numbers.
For example, a retail company might already be using BI reports to track sales data and customer retention rates. However, by integrating sentiment analysis from news, the company can gain additional insight into why sales are fluctuating. If a spike in negative sentiment is detected around a recent product launch due to quality issues, the business can quickly correlate this sentiment with declining sales figures. This creates a more complete picture, allowing executives to pinpoint the exact cause of a downturn and address it directly — whether through product adjustments, targeted marketing, or improved customer service.
Additionally, sentiment data can be analyzed by demographics or geographic regions, allowing companies to tailor their strategies more precisely. For example, a global beverage company could enrich its BI reports by integrating sentiment data by country or region. If positive sentiment around a new product is concentrated in Europe but not in North America, the company can adjust its marketing strategy to target the right market more effectively, refining promotional efforts in regions where sentiment is already favorable and making improvements where it's lacking.
In conclusion, incorporating sentiment analysis into market research offers businesses a powerful tool for gaining deeper insights and making data-driven decisions. From tracking public perception of brands and competitors in real time to predicting financial market movements based on news sentiment, this technique allows companies to stay ahead of industry trends, manage risks, and seize opportunities.
