A big part of my approach to understanding the market is to explore the edges, and one of the edges is information arbitrage—where social media analysis meets investment research. Think of a portfolio manager or analyst using social media intelligence to analyze investments and find trading signals. It'a pretty easy to understand the ROI in that application, and it's the kind of application that may just get your CFO's attention.
I've talked with people with some interesting approaches to this specialized market, and I recently started a project to categorize the strategies in the market. There are a number of different angles in play, which makes it a particularly interesting space:
- Atomic Intelligence
- Stock Sonar (Digital Trowel)
Given recent trends in financial markets, I've decided to prioritize other projects, but I expect to come back to this one (so if I missed your company, let me know). It's a potent reminder that there's more to social media than marketing and communications.