fbpx
Blog post
March 23, 2021

How social media conversation influences the market

An analysis of the finance industry post-GameStop

There’s no doubt the GameStop saga caused quite a stir within the finance industry and beyond. From a communications perspective, I’d like to reflect on the reputation of the finance industry and what’s changed as a result of the incident. I’d also like to explore the sentiment towards different financial institutions.

It’s important to delineate between investment banks, hedge funds (including HFTs and other obscure finance organisations) and commercial banks. For all the flak that commercial banks get, on the whole, individual banks are pretty good at communicating with consumers, maintaining their reputation and avoiding healthy skepticism turning into outright criticism. 

The sentiment around GameStop

Both professionally and personally I am compelled to regularly read the comments under breaking news articles shared on social media, and no matter what the cause or issues, I cannot recall a single story’s response being so absolutely one-sided.

When Isentia did an analysis of social media conversation relating to the GameStop saga, it found 88% of comments expressed an opinion about the topic supported the insurgent Wall Street Bets group. Approximately 50% of comments expressed a clear statement that hedge funds were losing at their own game and deserved no sympathy. The positively gleeful schadenfreude at the losses sustained by the hedge funds unified groups that in any other contexts would be building strawmen to attack each other in a never-ending battle of replies. Commenters in support of Wall St Bets floated conspiracy theories of the Democratic Party’s and Joe Biden’s personal involvement, while others called for the beginning of a socialist revolution. Robinhood closing positions and restricting trading in GME united such disparate voices as Alexandria Ocasio-Cortez, Ted Cruz and Donald Trump Jr., a potential dinner party for the ages that was cut short by AOC reminding Cruz of his role in the January 6th Capitol storming.

This reaction shouldn’t be surprising to anyone. Recent real-life examples, like the GFC have built up doubt in financial institutions like hedge funds and investment banks, and cultural representations of these organisations tend to be negative.

Opinions of Wall Street

Looking at Hollywood films about investment bankers and hedge funds, we see a list of negative depictions; The Big Short, Wall Street: Greed is Good, Wolf of Wall Street, Margin Call and American Psycho. Indeed, it’s hard to find a positive depiction of Wall Street and high finance with the possible exception of the Pursuit of Happyness. 

Opinions of ‘Wall Street’ in the 2017 US YouGov survey, found that 77% of people believed that “most people on Wall Street would be willing to harm consumers if they believed they could make a lot of money and get away with it”, 72% believed Wall St financiers were more greedy and selfish than regular people. By contrast, in 2018, only 66% of 18-24 year olds and 76% of 25-34 year olds said they have always believed the earth was round. Put another way, you would possibly have more success on social media, arguing for a theory of a flat earth, than you would for the idea that there are ethics on Wall Street. 

But none of this is new, those surveys are years old, people still talk about the open wounds of the GFC in 2008 and American Psycho was released in 2000. It may have ebbed and flowed at times, but movements like Occupy Wall Street didn’t feel like a response a single moment, but looked to address long-standing grievances. People have long been cynical about hedge funds and investment banks, and it doesn’t appear much has been done by the industry to improve the situation. Thought pieces on public relations and branding express exasperation with the financial services sector, generally acknowledging early in the text; ‘we know you don’t like it but here’s why you need it’, much like a dentist explaining flossing. 

And who could blame hedge funds and investment banks for being ignorant in the modern world of communications? They are non-consumer facing businesses. They don’t have issues like other non-consumer-facing businesses (mining companies) that regularly seek community and environmental project approvals and face a highly organised and powerful climate change movement. They also don’t have an easy story to tell. The mining sector’s blue-collar jobs and regional economies have a more convincing message than providing liquidity to financial markets and diversifying risk.

The power of social media conversation

So if the reputation hasn’t changed why would we suddenly talk about it from a communications perspective? Because the consequences have changed. The power of social media conversation and accessible trading platforms has meant that suddenly the poor reputation of these firms not only makes them a target for activist financial consequences, but also an entirely unsympathetic one (again, 88% of commenters on social media supported the actions of Wall Street Bets, and celebrated hedge fund losses). The question of regulating future market distortions such as GameStop is made politically complicated by this sentiment.

The other thing that’s changed; the messaging is clearer. People often distrusted Wall Street, but the usual attacks of income inequality and regulation tend to be murky and complicated. The frequent usage of the word democratisation is probably the most interesting development in the entire GameStop saga from a communication perspective.

What about regulation?

Anyone who has studied or read about behavioural economics and knows about experiments in the Dictator Game will readily understand there is an innate drive towards fairness in our dealings with others, and perceptions of unfairness encourage us to punish the perpetrators, even if it’s to our own detriment. Thus, generating a clear narrative of unfairness is a powerful tool to generate support for a cause. The traditional attacks of income inequality are often the flagship of anti-Wall Street or anti-finance messaging and are often blurred enough to create a reasonable level of debate. Even if everyone agrees that regulation isn’t working, surveys in the US show deep divides between whether people believe the problem is about not enough regulation, not adequate enforcement of existing regulation, or if it’s the wrong type of regulation. This disagreement makes it difficult to build a clear policy of reform.

Democratisation, however, feels like it is a more powerful and clearer message. Propelled into the limelight most clearly by the actions of Robinhood, it asks a question of fairness that is far harder to obscure or dispute. We can argue whether or not the game is rigged, but no one can deny it’s unfair if you’re not allowed to play.

What’s next for investment banks and hedge funds?

As a communications professional I am interested in the development of the narrative of democratisation and accessibility, and how those who support regulation in the post-GameStop era find ways to attack this sentiment. I am also interested to see how investment banks and hedge funds respond. They’re clearly starting with a difficult story to tell. While none of this has been a problem before, they now need to find a way to communicate with the wider public, particularly young people. They also need to shift a narrative that has existed for decades if not longer. In this partisan era one might avoid consequences from the antipathy of either progressives or conservatives, but the concentrated and focused antipathy of both, united by a simple and powerful message, is something to be concerned about.

Share

Similar articles

object(WP_Post)#7069 (24) { ["ID"]=> int(15757) ["post_author"]=> string(2) "36" ["post_date"]=> string(19) "2021-06-18 04:45:26" ["post_date_gmt"]=> string(19) "2021-06-18 04:45:26" ["post_content"]=> string(869) "

This report aims provides insight into the Banking Industry in Vietnam. We look into people's preferences into their customer experience; using either traditional or digital banks, we deep dive into the topics driving social conversations about the banking industry, and the top mentioned brands related to the banking industry in Vietnam.

We have explored the latest trends and unpacked the current situation faced by the digital banking industry in Vietnam.

Download the whitepaper and read more.

" ["post_title"]=> string(47) "The digital battle banks in Vietnam need to win" ["post_excerpt"]=> string(135) "We explore users preferences within the banking industry - traditional or digital? Learn about the topics driving social conversations." ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(4) "open" ["post_password"]=> string(0) "" ["post_name"]=> string(38) "digital-battle-of-the-banking-industry" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2023-07-07 04:08:29" ["post_modified_gmt"]=> string(19) "2023-07-07 04:08:29" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(32) "https://www.isentia.com/?p=15757" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" }
Whitepaper
The digital battle banks in Vietnam need to win

We explore users preferences within the banking industry – traditional or digital? Learn about the topics driving social conversations.

object(WP_Post)#7164 (24) { ["ID"]=> int(35151) ["post_author"]=> string(2) "36" ["post_date"]=> string(19) "2024-10-16 22:29:38" ["post_date_gmt"]=> string(19) "2024-10-16 22:29:38" ["post_content"]=> string(10781) "

It’s become a truism to state that local journalism is in decline. But that story has been complicated by a new form of socially conscious ‘start-up’ publication cropping up across both ANZ and the wider world. 

Consumers of local journalism are turning to independent sources, such as CityHub and Westender, that focus on community-driven stories, accountability, and underrepresented voices. This shift is compounded by the decline of traditional outlets, as highlighted in recent articles discussing the closure of regional papers due to rising costs, Meta's withdrawal of funding, and shrinking government ad budgets. These pressures reinforce the need for meaningful engagement with local journalism, as audiences demand authenticity and transparency in coverage of issues like housing, civil rights, and activism. By examining these independent outlets, we gain insights into how independent journalism continues to shape public discourse and meet the expectations of news consumers today.

Over time, the ANZ media has itself been writing increasingly about local journalism. Some of this laments its decline; elsewhere, it’s cited in national stories as a story source. But over time, we also see some of that attention focusing on publications such as The Westender and Cityside. 

The Westender’s content and engagement reveals that local journalism consumption in Brisbane is significantly influenced by timely and relevant political topics, and pressing community issues such as the housing crisis. 

Engagement patterns suggest that timely advocacy and local relevance are key draws for the publication, highlighting a community eager for information that resonates with their values and interests. 

https://twitter.com/Born_In_54/status/1805460167880065075
https://twitter.com/JanB_QLD/status/1758987841701621957

Over in Sydney, meanwhile, CityHub  amplifies underrepresented voices and promotes accountability by covering issues such as military bases ("We Need to Talk About Pine Gap"), NSW’s anti-protest laws, and housing policies. It offers alternative perspectives that challenge mainstream narratives, fostering civic engagement and activism. With audiences engaging on platforms like X and Reddit, local outlets build credibility through community-driven stories and partnerships with organisations like Australians For War Powers Reform.

This pattern suggests that certain topics resonate more deeply with the audience than others. Stories that receive particular attention advocate for diversity and anti-racism, and frequently call out local councils for failing to act on commitments, such as anti-racism strategies. 
CityHub highlights the views of prominent local figures and groups, like Greens councillor Dylan Griffiths, who pushed for Inner West Council's ceasefire call in Gaza, and the Arab Council for Australia, whose frustration led to the mass resignation of the Multicultural Advisory Committee. This type of reporting offers a platform for communities seeking to impact policy—something often underrepresented in mainstream media coverage unless it’s taking place on national scale.

https://twitter.com/iamthenas/status/1727527112004047137
https://twitter.com/derridalicious/status/1780132840098951532
https://twitter.com/Wendy_Bacon/status/1827873654191067398

The active sharing of CityHub content on platforms like X and Reddit highlights community engagement around social issues.

CityHub’s audience is most likely to engage with political themes, followed by culture and crime, often focusing on issues that directly impact their lives, values, and beliefs. 

Advocacy campaigns, such as the Fossil Ad Ban's billboard initiative, not only spotlight important issues but also critique political figures like Anthony Albanese based on their responsiveness to these values. Cultural expressions, such as protests and street performances, carry political significance, while initiatives like the Sydney Olympic Park development reflect community values towards topics like urban planning. 

Clearly, CityHub and publications like it are fulfilling a need that has been unfulfilled amongst the community - but what influential figures help disseminate these stories amongst willing audiences?

It’s no surprise that advocacy groups are actively sharing and disseminating calls to action. Content creators, particularly those writing for CityHub, effectively communicate the stories they cover, resulting in increased engagement for the local outlet. The reach and influence of these reporters often surpass that of CityHub itself. Additionally, credible community figures, such as university lecturers, further enhance the publication’s coverage. 

CityHub and The Westender illustrate the critical role of independent local journalism in shaping public dialogue and accountability. This active participation reflects a community eager for accountability and willing to challenge local authorities on issues like systemic inequalities and inadequate policies. The preference for independent sources indicates growing scepticism towards mainstream media and a trust in alternative narratives that align with their beliefs. 

" ["post_title"]=> string(62) "How a new type of local journalism is engaging ANZ audiences " ["post_excerpt"]=> string(0) "" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(4) "open" ["post_password"]=> string(0) "" ["post_name"]=> string(60) "how-a-new-type-of-local-journalism-is-engaging-anz-audiences" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2024-10-18 01:52:12" ["post_modified_gmt"]=> string(19) "2024-10-18 01:52:12" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(32) "https://www.isentia.com/?p=35151" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" }
Blog
How a new type of local journalism is engaging ANZ audiences 

It’s become a truism to state that local journalism is in decline. But that story has been complicated by a new form of socially conscious ‘start-up’ publication cropping up across both ANZ and the wider world.  Consumers of local journalism are turning to independent sources, such as CityHub and Westender, that focus on community-driven stories, […]

object(WP_Post)#7159 (24) { ["ID"]=> int(35056) ["post_author"]=> string(2) "36" ["post_date"]=> string(19) "2024-10-10 00:11:13" ["post_date_gmt"]=> string(19) "2024-10-10 00:11:13" ["post_content"]=> string(6835) "

The role –and nature– of news and journalism is constantly evolving, from how it is consumed to which voices are trusted. New platforms, the rise of citizen journalists, and shifting news consumption habits are continuing to reshape the traditional and new media landscapes, creating both challenges and opportunities for PR and communications professionals. 

In regions like Australia and New Zealand (ANZ), these challenges are particularly significant due to the unique ecosystem and levels of public engagement. With a relatively small number of major news outlets, the way journalism is practiced and perceived in ANZ carries considerable weight. 

And this has a day-to-day impact on how PR & Comms professionals carry out their jobs. What does it mean when trust in journalism fluctuates, or when emerging platforms challenge traditional outlets for influence?    

To kick off our study into the state of journalism and news - in both ANZ and beyond - we’ve started by quantifying how the public talk about the media. 

Compared to the UK and US, Australia and New Zealand audiences are more likely to label journalism as ‘important’, albeit with a not inconsiderable amount of conversation describing it as "dead." 

What’s behind the difference? Certainly, both countries' audiences advocate for quality reporting and accountability, as exemplified by New Zealand journalist Jack Tame’s revelation of a gun lobbyist's lies after the Christchurch attack. At the same time, local journalism faces challenges, with regional outlets shutting down due to lack of government funding, as noted by ACM’s Managing Director Tony Kendall. These in turn lead to spirited defenses of local journalism’s importance. 

However, neither of these trends are necessarily unique to the ANZ regions. The answer can potentially be located when we look at how these conversations take place over time.

Clearly, public conversations around journalism - both in ANZ and elsewhere - are not in their nature consistent. This reflects how particular moments in the news cycle can lead to a sudden outpouring of interest and conversation. 

So what are those moments in ANZ? 

One centres on the recent court cases being mediated between the Australian government and social media organisations. In looking to place a monetary and moral value on news, these proceedings prompt the ANZ public and media to talk about journalism as something ‘important’ and worth protecting.

Another hinges around the return of Julian Assange to Australian soil. This has prompted differing responses across individuals and media outlets - but what’s certain is that it places ANZ at the centre of an important unfolding conversation about the role and responsibilities of the media. 

Australia and New Zealand are global outliers in many sectors, from sport to mining & energy. Journalism, it seems, is another that could reasonably be added to that list. 

https://twitter.com/TFalkingham/status/1812347872651731399
https://twitter.com/australian/status/1835544147283079582

So why does this matter? 

PR and communications strategies must adapt to a landscape where sources of information are more fragmented and where citizens themselves can act as newsmakers. It’s important to understand how attitudes around these vital channels and contacts take shape. 

We’ll be exploring the journalist and media landscape through multiple different lenses over the coming couple of months. If you’d like to attend one of the events we’re hosting around the region - or view a webinar recording - please reach out to us at brandmarketing.team@isentia.com

" ["post_title"]=> string(51) "ANZ audiences & journalism: A sunnier outlook " ["post_excerpt"]=> string(0) "" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(4) "open" ["post_password"]=> string(0) "" ["post_name"]=> string(42) "anz-audiences-journalism-a-sunnier-outlook" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2024-10-18 01:51:45" ["post_modified_gmt"]=> string(19) "2024-10-18 01:51:45" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(32) "https://www.isentia.com/?p=35056" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" }
Blog
ANZ audiences & journalism: A sunnier outlook 

The role –and nature– of news and journalism is constantly evolving, from how it is consumed to which voices are trusted. New platforms, the rise of citizen journalists, and shifting news consumption habits are continuing to reshape the traditional and new media landscapes, creating both challenges and opportunities for PR and communications professionals.  In regions […]

object(WP_Post)#10034 (24) { ["ID"]=> int(32225) ["post_author"]=> string(2) "36" ["post_date"]=> string(19) "2024-06-26 00:17:43" ["post_date_gmt"]=> string(19) "2024-06-26 00:17:43" ["post_content"]=> string(9968) "

The Australian Competition and Consumer Commission has published anti-greenwashing guidelines for businesses making environmental and sustainability claims. Despite these efforts, media coverage of greenwashing, particularly focusing on senate inquiries and regulatory court cases against major offenders, continues to expose brands and industries stretching the truth in their sustainability messaging. This exposure is causing a growing disconnect between consumers and corporations, as audiences increasingly call out misleading practices and question the authenticity of corporate sustainability claims.Isentia’s sister brand, Pulsar conducted recent research exploring media and public discourse around sustainability. Part of this report examines how greenwashing is covered in the news and on social media, particularly in relation to the broader sustainability discourse. Let’s investigate those themes in more depth here.

Social media data is decreasing while online news activity re-engages, indicating incident-led conversations. Regulatory bodies like the ACCC, and state and federal governments are tackling greenwashing by identifying major corporate offenders and their misleading actions, such as 'recyclable' packaging, carbon credit misuse, lack of transparency in fossil fuel investments, and exploitation of government climate programs. Audience conversations often align with news coverage on these matters.
The term in Australia particularly gained traction among social audiences around November 2022 when the UN called out the Australian government for allowing the use of carbon offsets in corporate emissions reduction strategies. News of the apparent collusion between the government and large corporations has caused public faith and trust in both to dwindle. As these stories emerge, Australia's positive sustainability impact on the international stage is significantly undermined.

https://twitter.com/janegarcia/status/1591662729664004099

When we look at which sectors are most discussed within the greenwashing topic, energy, finance, and food take the lead.

Much of the discussion regarding the energy and finance sectors emphasises their interconnectedness, particularly the investment by financial institutions, including super funds, in environmentally harmful industries. Despite some super funds claiming to offer options that avoid unsustainable investments, reports have revealed that they collectively hold millions of shares in the fossil fuel industry. 

Many industries are being criticised for using carbon credits, such as REDD+ offsets, to appear more sustainable. Advertising, marketing, and public relations also play a significant role in promoting misleading sustainability initiatives, thereby contributing to greenwashing. However, stakeholders are aware that the advertising and communications industries have a huge impact on the profitability and success of an industry or product. The European Union’s Product Environmental Footprint classification system, for example, has been criticised by Australia’s wool industry for being unfair to wool products and for greenwashing. This, they argue, not only undermines the pursuit of a green transition within fashion but also damages a vital industry.

Mercer stands out as a most mentioned brand within the topic of greenwashing. This is due to ASIC pursuing a civic penalty case against them which alleged they misled members about its sustainability investments. This is groundbreaking for audiences to witness as it would be the first time the consumer watchdog has taken a company to court for alleged greenwashing.

https://twitter.com/BillHareClimate/status/1630404986130808833

Much of the conversation focuses on misinformation and lack of transparency in communication and marketing. Certifications like Fair Trade are being questioned, particularly for products like chocolate, and eco-certification for farmed salmon. It particularly muddies the waters for political figures when they get entangled with brands coming under scrutiny for such greenwashing.

https://twitter.com/JosieMcskimming/status/1750987402691362858

Furthermore, some companies feature in the media conversation due to their involvement in a senate enquiry initiated in March 2023, with a report expected by June 28th this year. 

Analysis of the ANZ reveals a shift in mindset, with consumers emphasising individual actions for solutions like composting or guerilla campaigns on mislabelled environmentally friendly salmon products. Grassroots and individual activism leading to actions like divestment from conflicting companies. Community groups like uni student clubs showcase how groups with shared values and experiences can make noise and incite change with how universities invest. However, there are ongoing debates as to whether it’s the role of sectors like higher education or Super Funds to prioritise the environmental implications of their decisions.

The rise in curiosity around greenwashing highlights the growing consumer demand for transparency and genuine sustainability from brands. As regulatory scrutiny and public awareness increase, brands must ensure their sustainability claims are genuine or face reputation damage.

" ["post_title"]=> string(76) "The Eco-Spin Cycle: how brand’s sustainability claims come out in the wash" ["post_excerpt"]=> string(139) "Regulators are cracking down on corporate greenwashing, but what does media discussion reveal about its impact on brand-consumer relations?" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(4) "open" ["post_password"]=> string(0) "" ["post_name"]=> string(72) "the-eco-spin-cycle-how-brands-sustainability-claims-come-out-in-the-wash" ["to_ping"]=> string(0) "" ["pinged"]=> string(88) " https://www.isentia.com/latest-reads/sustainability-mapping-media-and-pr-conversations/" ["post_modified"]=> string(19) "2024-09-09 02:35:11" ["post_modified_gmt"]=> string(19) "2024-09-09 02:35:11" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(32) "https://www.isentia.com/?p=32225" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" }
Blog
The Eco-Spin Cycle: how brand’s sustainability claims come out in the wash

Regulators are cracking down on corporate greenwashing, but what does media discussion reveal about its impact on brand-consumer relations?

Ready to get started?

Get in touch or request a demo.