Data-driven decision-making is a powerful capability for modern businesses, but they must navigate a complex news matrix to extract genuine, actionable intelligence
Data-driven decision-making is a powerful capability for modern businesses, but they must navigate a complex news matrix to extract genuine, actionable intelligence.
In a world teeming with data, every byte tells a story, and every story drives a decision. However, the deluge of data in the modern news ecosystem makes it more important than ever that businesses can discern credible information from the unreliable and ensure the news data they rely on for critical decisions is accurate, relevant, and timely.
The modern enterprise must navigate this intricate landscape with a discerning eye, embracing the wealth of information while safeguarding against misinformation and rapidly changing narratives.
The ability to effectively traverse this dynamic ecosystem is crucial for optimizing the value derived from news data in strategic planning and investment decisions. We asked 200 leaders in data, analytics, and innovation in Europe and the United States about how the news and data derived from it drive decisions and create value in their organizations. This report presents our findings and offers analysis from leading data and analytics professionals in the financial field.
“As an economist, news is everything,” says Lu Chen, Director and Senior Economist at Moody’s. “I focus on the macro economy, the stock market, and the bond market, and how that’s influencing each asset class. News data is critical for the job I’m doing.”
The Changing Role of Traditional News Sources
In an era where information is abundant and diverse, traditional news sources play a critical role. They provide verifiable and trusted insights and anchor business decision-making.
However, the traditional news ecosystem has undergone a seismic shift in the era of 24-hour news cycles and pervasive social media platforms. This transformation presents both opportunities and challenges for businesses seeking trustworthy news data to guide decision-making and investments.
The explosion of information sources, while providing a wider array of perspectives and realtime updates, also muddies the informational waters. Despite the proliferation of news on social media, our research suggests that professional news sources still have a key role to play in delivering trusted news to businesses.
97% and 96% of respondents respectively turn to professional and consumer media sources for trusted information. These figures underscore the pivotal role of professional journalists across various platforms, from trade publications to online and print mediums, in delivering credible and valuable news data for diverse organizational needs.
Despite the dominance of traditional media sources, dataderived sources are also relied upon by 85% of respondents, highlighting the importance of quantitative data in complementing news data for comprehensive insights.
Our findings paint a picture of caution towards social media and aggregators/vendors not in the news business, with only 50% and 47% of respondents respectively considering them as sources for news data.
This reflects prevailing concerns regarding the credibility, accuracy, and reliability of news data from these platforms, indicating a more discerning and selective approach toward their utilization for organizational information needs.
“Official media is becoming more emotional. More people are relying on social media as a source of news,” says Alex Golbin, Chief Data Officer at financial services firm Hudson Bay Capital. “I think there is a nontrivial impact of news, broadly defined as official news and social media news, on stock price volatility of companies.”
Overall, the findings emphasize the enduring value of professional and established media sources in providing reliable news data, while signaling the need for enhanced credibility and trustworthiness in emerging and non-traditional news platforms to bolster their standing in the organizational news data landscape.
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This is an excerpt from our white paper published in partnership with Moodys: The Evolution of News Data. Check out the full report containing proprietary market research and insights from industry leaders here
