Social Media And Investor Relations - April 8, 2010
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Social media has become a crucial tool for investor relations, with 72% of internet users on social networks and substantial engagement from financial professionals and investors using these platforms for research and decision-making. Many companies are lagging in establishing social media policies, leaving them vulnerable to risks from misinformation. To build trust and influence, it's essential for organizations to engage in social media proactively and consistently monitor their online presence.
Social Media And Investor Relations - April 8, 2010
- 1. Social Media & Investor Relations Presented by Darrell Heaps, CEO Q4 Web Systems
- 2. Trends and Statistics SO WHAT’S THE BIG DEAL? Q4 Web Systems Inc.
- 3. 72% of Internet users are part of at least one social network, which translates to 940 million users worldwide. Social media is now mainstream. Source: http://blog.insites.be/?p=1704
- 4. 85% of financial services professionals under 50 are using social media 86% of those under 50 agree that social networking will be an important business development tool within five years. 0% claimed that social media wasn’t worth their time. Source: http://www.ledermark.com/news.php
- 5. 47% of institutional investors read financial blogs for investment research and ideas 20% have used blog research to execute a recommendation or investment decision. 63% of US pro investors say blogs and social networks will play an increasingly important role in investment decisions in the future Source: Brunswick Group study of 500 buy-side and sell-side Sept 2009
- 6. 89% of Journalists using blogs, 65% social networking, 52% microblogs (Twitter) 278 business Journalists on Twitter listed at muckrack.com 15 Financial Times / 28 Business Week / 41 Forbes / 66 Wall Street Journal / 108 New York Times Source: http://us.cision.com/news_room/press_releases/2010/2010-1-20_gwu_survey.asp
- 7. 47% of retail investors look to the financial web sites and blogs for investment advice Investors aged 40 and older rely on financial websites and blogs (47%) and financial print publications (41%) more than planners or advisors (39%), brokers (36%) and family (19%). Source: http://content.sharebuilder.com/mgdcon/core/AboutUs/survey_results/White_Paper.pdf
- 8. 79% of Fortune 100 are using at least one of the most popular social media platforms: Twitter, Facebook, YouTube or corporate blog 65 percent of the largest 100 international companies have active accounts on Twitter, 54 percent have a Facebook fan page, 50 percent have a YouTube channel, and one-third (33 percent) have corporate blogs Source: http://www.burson- marsteller.com/Innovation_and_insights/blogs_and_podcasts/BM_Blog/Lists/Posts/Post.aspx?ID=160
- 9. Examples and Best Practices WHAT ARE THE RISKS? Q4 Web Systems Inc.
- 10. Only 20% of companies globally have a social media policy Establishing clear policies for social media is requirement for every public company. All employees must understand acceptable use. Restricting access doesn’t work – 55% of all social media usage is mobile. Checking Facebook is the new smoke break. Source: http://www.emarketer.com/Article.aspx?R=1007493
- 11. Investors are consuming all of your content, whether published by IR or not. It’s important to display a united front to the market. What does your HR blog or Facebook page say about you to an investor? What about LinkedIn? You need to acknowledge that investors are searching the web looking for information on your company – what are they finding?
- 12. Not listening to the web is the biggest risk for all companies. Monitoring for your company, executives, along with tracking what you competitors are saying is a key element to staying ahead of rumors, misinformation and crisis.
- 13. Using social media and your voice of authority is an important method to build trust with stakeholders. Investors and shareholders are influenced by journalists, bloggers and activists. Using the web and social media allows you to maintain a corporate voice in the market and build trust among stakeholders.
- 14. Examples and Best Practices WHO IS DOING IT RIGHT? Q4 Web Systems Inc.
- 16. Use the same channels to influence
- 17. Twitter use by Sector 1% 3% 2% Technology 3% 4% Services 5% 29% Industrial Goods/Basic Materials 6% Pharma/Healthcare/Biotech Natural Resources 8% Utilities Consumer Goods 15% 12% Telecommunications Automotive 12% Exchanges
- 20. Slideshare distribution Embedded SlideShare presentations gain additional exposure for your presentations. SlideShare tracks how many people view your presentation, and from where. After 3 weeks, Barrick’s presentation was viewed 396 times – 178 of these via SlideShare. See updated stats.
- 22. Small Cap Social Media ROI www.tvipacific.com Website redesign Twitter Facebook YouTube Flickr Connect with us: http://www.tvipacific.com/Investors/Investor-Connect/
- 24. Summary Start by listening Put a social media policy in place Publish content to YouTube, Flickr, SlideShare, etc and embed on website Share updates on Twitter/Facebook provide a context to your company and business Start small and evolve over time
- 25. THANK YOU! For more examples check out: http://www.q4blog.com Or contact me: Darrell Heaps Q4 Web Systems 1-877-426-7829 ext. 222 [email protected] http://twitter.com/darrellheaps