Introducing the Market Impact Report – Revealing the Effect of News Releases on Stock Activity

June 15, 2015

By Vilan Trub, Business Wire

Earlier today, Business Wire and News Quantified launched the Market Impact Report.  This groundbreaking new measurement tool allows communication professionals to track the impact their news releases have on publically traded companies’ stocks.

Although there are a lot of options for measuring communications efforts, there is a gap when it comes to attributing financial ROI to company issued news. Business Wire identified this gap and in News Quantified saw an opportunity. News Quantified, in partnership with Business Wire, developed a measurement system that will tie news release data with market trading behavior. Now, PR and IR pros will be able to track exactly how the market reacted to the issuer’s stock immediately following the release of company news. They will also be able to compare this trading behavior to that of other company stocks.

What’s the big deal about keeping track of changes to market behavior following the issuance of a news release? With the Market Impact Report you can achieve a deeper understanding of how and why your company stock moves when you issue a news release. You have a deeper view of what kind of investors your news is attracting and how your news is influencing their trading. The report includes 27 key variables ranging from volume and variability to ticks and block trading.

By understanding who your news is reaching, you can tailor your communication in the direction that best benefits the value of your company’s market presence.

Oliver Schmalholz, co-founder and CEO of News Quantified, has spent the last 15 years analyzing market behavior. It was during his time running a private trading firm that he recognized the benefits of an out-of-the-box product that could analyze news impact on stock trading behavior. “News and market data have historically been kept separate – our alliance with Business Wire will help to tear down that wall,” says Schmalholz.  “We are thrilled to partner with a company that has the reputation and expertise of Business Wire.

Business Wire is excited about the partnership and looks forward to the possibilities that lie in providing clients with the first ever financial impact tool. “Business Wire’s collaboration with News Quantified provides listed companies with a better understanding — and appreciation — of the relationship between news and share price.  To see how news is directly influencing market behavior is revolutionary,” said Gregg Castano, Business Wire President. “The Market Impact Report consolidates information from disparate sources into a convenient, user-friendly report that distills complex data into key findings. It is another example of Business Wire’s differentiating value proposition.”

Click here to learn more about the Market Impact Report:  http://bit.ly/1QrNSV8 or email us today to schedule a time to discuss this in greater detail.

Are you attending NIRI 2015 this week?  If so, Business Wire is offering sample reports for investor relations professionals that stop by our booth. The Market Impact Report is the first product in the industry that provides communications professionals with comprehensive stock impact data.

Click here to share this exciting news on Twitter: http://ctt.ec/1lfCK

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The ROI of News Releases: Business Wire Stands Above the Rest

June 9, 2015

By Gregg Castano, President, Business Wire

An announcement is only as important as the impact it has on the intended audience. For publicly traded companies, the biggest impact is typically financial, to influence individuals in how they invest in and analyze the markets. In 2009, University of Chicago doctoral candidate Eugene Soltes conducted a study aiming to find a correlation between the dissemination of company issued news and beneficial fluctuations in capital markets. His research, including the analysis of 9.3 million articles, indicated that, “greater dissemination causally leads to lower spreads, increased share turnover, and lower idiosyncratic volatility.”

Identifying the best avenue for news issuance is a vital decision that can dictate the future of company communications. Business Wire has a vested interest in being the optimal avenue and made it a priority to define the unmatched benefits our services provide. With the help of News Quantified, we decided to put Eugene Soltes’ theory to the test by setting out to measure the impact of company issued news on financial markets by the top newswire services. The report was based on an assessment of key financial elements including bid-ask, volume, and volatility.

News Quantified News Impact Survey Results

The execution of this study was intended to paint a definitive picture of how company announcements issued via a newswire, specifically Business Wire, affect market activity. The results were significant and they were consistent. The beneficial impact of a Business Wire issued news release on stock market activity is second to none.

The data for the report was compiled by a first-of-its kind research initiative conducted by News Quantified that leveraged a sample size of over 211,000 press releases issued between January 2014 and April 2015. The releases were for companies whose stocks trade on the NYSE and NASDAQ and were disseminated by Business Wire, PR Newswire, GlobeNewswire and MarketWired.

What were the results? Releases issued through Business Wire had a 4x bid-ask spread improvement over the combined average of the other tested newswires. This means that Business Wire issued news releases influenced easier conversion of stock to cash. Other metrics assessed showed similar results. Business Wire’s influence on trading volume showed to be 24% greater and volatility saw a 16% reduction when compared to the combined average of the other wires. For news releases issued through Business Wire the result was more stock being traded with more stable fluctuations in price change. All across the board the numbers show that investors are not only paying attention to, but also acting upon the news stemming from Business Wire’s patented distribution network.

An analysis of the difference between asking price and the price a buyer is willing to pay for a stock on the day company news is disseminated illustrates a direct cause and effect. How does a news release influence the liquidity of a stock? The same applies to measuring the amount of stock being traded in a given amount of time and the amount of uncertainty or risk regarding the size of changes in a stock’s value. These bid-ask spread, volume, and volatility figures, as well as the other metrics provided in the report, pinpoint the beneficial influence a Business Wire issued news release has on investor sentiment.

This data is significant because it exhibits a consistent pattern.  These findings are based on the foundation of a bridge between public relations and investor relations. When financial ROI is tied to company issued news, one distribution method stands above the rest. A news release issued through Business Wire will have the strongest impact on trading activity around your company stock.

News Quantified is an industry leading innovator in measuring news’ impact on stock market activity. Founded by Oliver Schmalholz, News Quantified utilizes a specially developed software system to monitor daily news releases and the trading behavior of specifically selected stocks. The extensive measurements provided facilitate a clear understanding of the type of investors being reached by company issued news and how their trading behavior is being influenced.

Business Wire has a long tradition of earning trust from both media and communications professionals.  A measure of that trust and the value we bring to our partners can been seen in the News Quantified analysis that identifies Business Wire’s superior market benefit on company issued news. This is a new benchmark of influence and we look forward to continuing to drive innovation in market-moving news dissemination for our customers.  For news results that matter most in the C-Suite, there is no more effective “wire” than Business Wire.

Click here to share these survey results with your Twitter followers: http://ctt.ec/M437H

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How to Successfully Measure Your 2014 PR Programs

November 15, 2014

The value of public relations is on the rise, and we could not be more pleased.  In the past 5 years, the metrics for public relations programs have been based on a wide range of factors, like SEO (which is actually a marketing/technology role), that are completely unrelated to the mission of PR.

In this piece, Serena Ehrlich breaks down 11 metrics successful public relations professionals will use to not only measure the success of their PR programs, but to ensure larger budgets in 2015.

 


Case Study: Press Releases Increase Awareness, Sales of Lakemaid Beer

October 16, 2014

By Serena Ehrlich, Director of Social and Evolving Media

Earlier this month, Business Wire launched the first in a series of case studies showcasing how clients are utilizing press releases to increase awareness, message permeation and, ultimately, sales.

In this CommPro piece, we speak with Pocket Hercules to find out how one press release, video and image resulted in hundreds of thousands of dollars in media coverage, views and ultimately, sales for Lakemaid Beer.  This program is one that many PR professionals can duplicate to support a wide range of products, services and more.

Click here to read the entire article and then ask yourself, how are you utilizing traditional PR tools to support your organization?


Upcoming Business Wire Events: Katie Paine in South Florida, Meet the Media in Charlotte

February 27, 2012

Upcoming Business Wire Events

Measurement, Engagement and Influence with Katie Paine- Moving from Theoretical to Tactical

Hosted by Business Wire Florida

Join Business Wire Florida for breakfast and a session with measurement maven, Katie Paine.  Paine’s most recent book, Measure What Matters: Online Tools For Understanding Customers, Social Media, Engagement, and Key Relationships, was released last March and will provide a foundation for her presentation.  “Measurement isn’t just a buzzword on everyone’s to do list anymore,” says Paine. “With tight budgets and a growing proliferation of tools and techniques to get your messages out there, PR pros are increasingly faced with tough decisions on where to put their resources. Only by figuring out what really matters and then developing specific metrics to measure the programs, can the right choices be made.” This event is FREE for all attendees.

Tuesday, March 6 at 8:30 am EST
Nova Southeastern University
3301 College Avenue Carl DeSantis Building, 3rd floor Sales Institute, Ft. Lauderdale, FL, 33314

To register: RSVP to Julia.Sotelo@businesswire.com by Friday, March 2.

Meet the Media

Hosted by Business Wire Charlotte

A panel of media experts will discuss topics including what’s a good story and current trends in journalism, as well as give tips on effective pitching. Panelists include: Rick Martinez, News Director, NewsRadio 680 WPTF; Rick Smith, Business and Technology Manager, WRAL-TV; and David Bracken, Assistant Business Editor, The News & Observer. This event is FREE for all attendees.

Thursday, March 15 at 11:30 am EDT
Sheraton Imperial Hotel & Convention Center
4700 Emperor Blvd., Durham, NC, 27703
To register: Please RSVP by March 9 to Penny Sowards at penny.sowards@businesswire.com

Business Wire holds dozens of local events every year. We bring local media members and industry thought leaders to your market to discuss today’s most relevant topics, from trends in today’s newsrooms to writing for SEO. Events are usually free of charge to members. For more upcoming local Business Wire events or to see what’s coming up in our award-winning webinar series, visit BusinessWire.com. Follow live updates from Business Wire events on Twitter: hash tag #bwchat


PRSA International Conference Preview: See you in Orlando!

October 14, 2011

by Amy Yen, Marketing Specialist, Business Wire Los Angeles

Heading to the PRSA International Conference this week? So are we! We’re looking forward to meeting PR professionals from across the country and learning about the latest trends and developments in the industry.

Don’t forget to come by and see us at Booth #401/403 for fun giveaways and a chance to win an iPad2.  We’ll have our team of experts on-hand to discuss our entire suite of public relations services, including:

While you’re at the show, take advantage of free one-on-one demonstrations of our dynamic NewsHQ Online Newsroom solution conducted by our online newsroom expert Ibrey Woodall.  You’ll learn how a better online newsroom can benefit your organization. Contact your local account executive or email Conferences2011@businesswire.com to schedule your free consultation.  We have times available all day Sunday and Monday.

Business Wire’s Laura Sturaitis, Executive VP of Media Services & Product Strategy, will be speaking with Greg Jarboe, president of SEO-PR, at a session called “Maximizing Press Release Performance Online” on Tuesday, October 18 at 9:45 a.m. ET in Palazzo Salon E.   You won’t want to miss their presentation of the results of an 18-month study on online press release performance and the strategies and best practices for optimizing press releases to increase traffic and engagement with key landing pages and websites.

Follow live updates from the conference on Twitter @BusinessWire.   Hope to see you there!


To Register or Not to Register? For Press Release Measurement, a Tough Question

August 9, 2011

by Sandy Malloy, Senior Information Specialist Sandy Malloy, Senior Information Specialist

In a column on ClickZ entitled “5 Traits of the Analytically Empowered Organization,” Neil Mason offers basic guidelines on how to get the most out of measurement and analysis.  Mason addresses website analytics but his guidelines can also apply to interpreting press release measurement data collected in Business Wire’s complimentary Newstrak reports.

“In an ideal world, data is integrated around known users but this may not always be appropriate or possible,” wrote Mason. “Some internal data may be on a customer level, but digital data is often based on cookie level data.”   

In other words, if you know with whom you are dealing (your own customers, or website visitors about whom you have specific information that they provided upon registration) you can record accurate information about those people.  If not, you have to gather information using less direct, and therefore less accurate, methods.

So, although ideally you would like in-depth, accurate data about each visitor to your site, or viewer of your press releases, realistically you might not be able to gather this data without compelling that person to register.  But compulsory registration can cause someone to leave a website.  A recent study found that 75% of consumers take issue with being asked to register on a website and will change their behavior as a result.

The Business Wire site stopped requiring registration as a prerequisite to reading full press releases because we wanted visitors to stay on our site longer and read more of our clients’ releases.  The trade-off is missing visitor-supplied information about their geographic location, industry, job title, and other facts from registration forms. 

We can still report upon each visitor’s “location” but that information actually corresponds to the IP address of the visitor.  Sometimes that’s the same as where the visitor is located.  In other cases, it only reflects where the internet service provider is located. 

We’re not alone in swapping broad access and happy website visitors for information that we have to then find indirectly (or selectively,  from the relative few who don’t mind registering). 

For instance, I’ve seen demos of social media analysis products that have geographic and demographic sections.   When I have pressed the salesperson for how these data were derived, I learned they used IP addresses–exactly as we do–and reported demographics for users who include that information in their profiles.  In other words, indirect, or selective; or even very, very selective, information.

None of this means that their reports, or our reports, are useless.  On the contrary, they can be extremely useful but, as is the case with any statistical report, you must know what you’re viewing.

Here are some tips on how to use statistical reports with these constraints in mind:

  • Don’t accept any numbers at face value.  Understand the context in which they exist and how they fit in with one another as well as with any statistics you might be gathering internally.
  • Make sure you are indeed gathering those internal statistics.  Don’t rely on third party reports to tell you the whole story about what you are trying to measure–the “known users” referred to above are YOUR users, and you can leverage those relationships to gather a lot of information.
  • Especially if you are purchasing a measurement product, don’t be so lulled by the sexiness of the presentation that you fail to ask the vendor, “How do you find this information?”  Prod for  specifics so you’ll know what numbers to rely upon and which should be taken with that proverbial grain of salt.

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