Google Search Trends is a tool provided by Google that allows users to see how frequently particular search terms have been entered into Google's search engine over a specific time period. The tool provides data for various regions and languages and allows users to compare search trends for multiple terms.
Google Search Trends can be used in various contexts to track public interest in EU Affairs and trends within finance. For example, a user could use Google Search Trends to see how frequently terms related to the EU or specific EU policies have been searched for over time. This can indicate the level of public interest or concern about a particular issue. For example, we see that the interest in the European Parliament peaks above the EU Commission during elections, but the Commission overall generates day-to-day interest.
Google also provides the rising terms associated with the terms of initial interest. Below, Brexit and GDPR are the policy domains most connected to the EU Commission's searches.
Google Search Trends can also track public sentiment or awareness changes about a particular topic. For example, if there is a significant increase in searches for a particular financial term or concept, it could indicate that there is increased public interest or concern about that topic. For example, the matrix correlation chart below shows that during COVID-19, the markets thought that the FTSE was the most exposed exchange because of the high correlation to the VIX volatility index. This was likely due to the additional concerns over how the UK economy can cope with the combination of QE policies and Brexit post-lockdown.
Furthermore, the search patterns can be used as leading indicators to get ahead of quarterly reported data from central banks. The unemployment index on the left is the search volume for “Unemployment” across all EU languages, while the official data is on the right. It shows that search volume can indeed be predictive. Two-week lead times can cost a fund manager or corporation hundreds of millions of dollars.
Overall, Google Search Trends is a valuable tool for tracking and understanding trends in public interest and sentiment and can be a useful resource for those working in EU Affairs and Finance. But when combined with other data sets, it offers a massive upside. Please get in touch for more details on how it can be applied to your organization strategically.