How Does Stock Price Correlate with Google Searches?
Businesses can adopt a solid marketing and branding
strategy that allows their Google search volume to increase.
- Branding is a Google ranking factor. Referring to an
algorithmic input that Google measures directly and uses to
determine ranking position.
- With successful brand strategies in place, we see correlation
between branding and google search rankings.
- A correlation doesn't always mean they are moving in the
same direction.
‘Bad Press is Better than No Press’ - PT Barnum
There’s no such thing as bad publicity. Businesses suffer from bad press, Google does not discriminate.
Websites that Google rank on the page 1 are considered most relevant/ useful.
Rankings are rankings, and can increase whether the information on page 1 is positive or negative.
Printkick have pulled data to look at global brands and their Google rankings, from FTSE 100 companies to see how their Google rankings correlate to stock growth.
Case Study: A Piece of Cake
Associated British Food is a British multinational food processing and retailing company whose headquarters are in London.
Known to be hovering over their debts but stable, their Google search results and stock price is almost perfectly contrasting.
With a large-cap stock it is considered by a lot of investors as a safe investment bet.
But research shows that if a word such as “debt” increases in search frequency or decreases in search frequency from one week to the next, the Google ranking is affected.With higher debt levels, stock price falls and Google ranking rises.
Case Study: Oil and Gas Prices…
Oil and gas stocks represent an essential portion of the energy sector.
They are a huge global market holding large amount of asset.
If there has been a crash within the oil stock price, Google search will inevitably rise as people demand further data and information.
An increase is oil and gas prices can stifle growth of the economy through their effect on the supply and demand for goods other than oil and gas.In conclusion, there is a clear correlation whereby a high oil and gas stock prices indicate a low Google ranking.
Case study: Branding vs Stock Price & Google Searches
Can we bring short-term sales goals and long term value together through brand-building and marketing?
Originally known as Thomson Holidays, the holiday company decided to undertake a total rebrand, becoming TUI, in 2017.
CMO Kate McAlister explained that upon rebranding, their brand awareness increased by 36% in under one year.
As indicated in the graph, 2017 saw a boom in stock prices and google searches - a clear correlation.
Furthermore, this is a perfect example of the positive effect branding can have on a business’ stock price and google search.
Conclusion:
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Branding is a consistent combination of several factors that come together to create a company’s image.
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The cold Coca Cola you’ve been craving, or the newest Apple iPhone upgrade. Brands, brands, brands. We recognise these immediately - we trust them.
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So how does branding impact stock price? Strong brands performed 20% better than weaker brands.
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Statistics show that 32% of businesses plan one year ahead, with consideration for the ways in which the marketing industry will change through digital technologies.
Sources: Google, Printkick