Article

Charlotte Hurley
Charlotte Hurley 3 May 2019

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:
 

  • Branding is a consistent combination of several factors that come together to create a company’s image.

  • The cold Coca Cola you’ve been craving, or the newest Apple iPhone upgrade. Brands, brands, brands. We recognise these immediately - we trust them.

  • So how does branding impact stock price? Strong brands performed 20% better than weaker brands.

  • 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

Please login or register to add a comment.

Contribute Now!

Loving our articles? Do you have an insightful post that you want to shout about? Well, you've come to the right place! We are always looking for fresh Doughnuts to be a part of our community.

Popular Articles

See all
‘Complainer marketing’ – should we harness rage to promote brands?

‘Complainer marketing’ – should we harness rage to promote brands?

As marketers, we're always looking to get the best results for our clients. But should we highjack the emotions of their customers to do so? No, as I explain in this post, you're better than that.

Tom Chapman
Tom Chapman 18 July 2018
Read more
How AI is Revolutionizing E-commerce and Online Shopping

How AI is Revolutionizing E-commerce and Online Shopping

In recent years, the world of e-commerce and online shopping has experienced a significant transformation thanks to the advancements in Artificial Intelligence (AI).

Andrea Crook
Andrea Crook 14 August 2023
Read more
Accelerate Your Content Creation Process With These Valuable Tips

Accelerate Your Content Creation Process With These Valuable Tips

As a writer, you must accelerate your process with timely, quality content. Read this post for content creation tips.

Dave Brown
Dave Brown 16 August 2023
Read more
Streaming Society: The Social Impact of Live Streaming in the Digital Age

Streaming Society: The Social Impact of Live Streaming in the Digital Age

This article delves into the social impact of livestreaming, analyzing its influence on communication patterns, community formation, celebrity culture, mental health, and economic opportunities.

Sim Johnsons
Sim Johnsons 1 September 2023
Read more
Bridging the Digital Divide: The Next Frontier in Employee Communication

Bridging the Digital Divide: The Next Frontier in Employee Communication

While marketers are seamlessly connected to the world of work via our computers and mobile phones, some 80% of the global workforce operates outside the confines of a traditional desk.

Nick Watt
Nick Watt 12 September 2023
Read more