Predicting the Future With Social Media
Source: Hewlett-Packard (HP)
Off late, social media has become ubiquitous and important for social networking and content sharing. And yet, the content that is generated from these websites remains largely untapped. This paper demonstrates how social media content can be used to predict real-world outcomes. In particular, the paper uses the chatter from Twitter.com to forecast box-office revenues for movies. The paper shows that a simple model built from the rate at which tweets are created about particular topics can outperform market-based predictors. The paper further demonstrates how sentiments extracted from Twitter can be utilized to improve the forecasting power of social media.