Social Media for IR

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A comprehensive presentation on Social Media tools and tips for Investor Relations and Financial Communication professionals.

A comprehensive presentation on Social Media tools and tips for Investor Relations and Financial Communication professionals.

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  • China - 92% of Chinese netizen use social media
  • PSI – price sensitive information

Transcript

  • 1. INVESTOR RELATIONS 2.0 ARE YOU READY?
  • 2. The following presentation is presented by Ketchum and provides an overview of Social and Digital media’s impact on the practice of investor relations by evaluating: Trends Challenges Opportunities 2
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  • 4. “ Now it’s the people who are taking control.” - Rupert Murdoch, CEO, News Corp 4
  • 5. The Trends Social Media – New Global Footprint Explosion of communications channels - An interactive form of communication where you are able to be both the broadcaster as well as the receiver of information, and where there is an equal balance of power between all participants. In other words, your voice is equal to the voice at the other end. 5
  • 6. The Trends Increasing numbers of shareholders, stakeholders and retail investors using and consuming social media to understand more about your company • 75% of institutional and professional investors visit your investor site on a daily or weekly basis • 67% of online population use social networks/blogs • 72% of internet users are part of at least one social network, which translates to 940 million users worldwide. • 85% of professional financial service providers under 50 are using social media • 89% of journalists using blogs, 65% social networking, 52% micro-blogging (Twitter) 6
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  • 8. CHALLENGES Challenges For Investor Relations Today • Wide variety of channels and influencers – Individuals now have a voice that is as loud as your company. Financial bloggers, tweets, etc. can spread rumors at an alarming rate. • Loss of control – with blogs and online forums, companies can no longer control, to a degree that they are accustomed to, their internal and external communications. So it is essential to monitor the conversations to ensure what is being said is true. • Regulatory requirements – legal and regulatory framework presents limitations for the use of social media, but there is a clear trend of increasing use of online social media tools by shareholders and investors • Internal – Employees engaged on social media networks can become your influencers as well, but you need to consider the regulatory and compliance implications of employees disclosing potentially market-sensitive information online. • Effective Analytics – How to measure the ROI for their social media activities, evaluation method tends to focus on measuring one-off campaigns rather than the linear activity and radiation of the online conversation 8
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  • 10. Best Practices: RegulatoryThumb les of & Compliance Investor Relations should play an active role in monitoring, managing and engaging in their companies’ activities on social networks to: 1. Ensure their firms exposure to potential compliance risks are minimized by establishing controls and procedures, to monitor company activities on the web 2. Establish dedicated social media IR channels that are the sole source for company related IR content 3. Synchronize information distribution about regulatory updates across all channels –traditional and digital 4. Maintain neutrality in linking to 3rd party content about financial performance and prospects for the company’s stock 10
  • 11. Best Practices: IR Websites Investor Relations focus should first and foremost be dedicated to creating a compelling investor story through great content and information that will help your organization compete more effectively for capital and inform your shareholders: 1. Accommodate Investor and analyst needs for a variety of easy-to-use formats 2. Integrate social media/sharing capabilities into the site, e.g. Twitter, Dig, Delicious, etc. 3. Offer distinct areas of increasing importance to the investment community, specifically corporate governance and sustainability initiatives 4. Build site with SBRL formatting, which is becoming a more widespread standard 5. Integrate tools and features to better tell your company’s story: executive blogs, podcasts, video series, web-based sharing technologies and mobile services 11
  • 12. Best Practices: IR Websites There are several common best practices to consider when evaluating your IR website presence: 1. User Experience: This incorporates design and information architecture into a compelling site experience. This includes prioritizing primary content, as well as ensuring information is accessible and easily consumed 2. Brand Relevance: There should always be a strong and clear connection between the IR website and the corporate brand 3. Usability: Site navigation and design should be “user-centric,” placing emphasis on the content that is most important to the user 4. Interactive Tools: Investors, especially retail investors, look for basic online tools for tracking share price and information 5. Range of Formats: Analysts, institutional investors, retail investors and students are accustomed to a broad range of formats. XBRL (eXtensible Business Reporting Language) is now being widely demanded 6. Content Delivery & Syndication: While there are divergent opinions on the use of social media in IR, many IR websites now incorporate at least a few digital media features. 12
  • 13. A Quick IR Website Check List Category Tools Stock Investment Calculator Financial. Quarterly comparison of financials; Earnings Estimates Disclosure Brand Design linked to brand homepage; Brand relevant copy Relevance and images; Mission Statement; Education Page Usability Viewable link from homepage; Easy navigation; Legibility; Accessibility of information with minimal clicks; Visuals in place of text; IR-specific search bar; Drop down menus and easily sort-able info; User briefcase Interactive Intra-day stock information; Custom historic price data, Tools Total return calculator; Benchmarking against relevant indexes Range of PDFs, Print, Audio/MP3; MS Work, PPT, Excel; XBRL Formats Content RSS; Executive webcast; Social media feeds; mobile Delivery and capabilities Syndication 13
  • 14. Best Practices: Monitor, Listen, Respond • Companies need to be tuned into the conversation happening around Monitor them 24X7 around the globe that can effect their IR goals, corporate reputation and in some cases regulatory compliance • Consider simple and free tools like Google Alerts or more sophisticated and comprehensive services from third party providers • Understand how to separate the noise and focus on the critical Listen information about your company’s IR priorities • Focus on issues that are a threat to your company’s reputation in the marketplace; erroneous information that is being spread • Identify influencers and stakeholders that have an impact on your companies IR priorities (e.g. shareholder activists, government & regulatory bodies. Respond • Evaluate opportunities to better engage your key stakeholders through new digital and social media channels with great content • Always weigh your company’s response online to ensure it is within relevant market compliance and regulatory standards 14
  • 15. Case Study: HP Third-Quarter Earnings You might consider HP as the gold standard or at least a trailblazer in its efforts to integrate social and digital media into its quarterly earnings announcement. Case in point is their most recent third-quarter earnings in which they blended traditional disclosure with online platforms. Outlined below is an anatomy of this well organized “IR 2.0” disclosure exercise Phase 1: Pre-earnings A day before the actual earnings announcement, HP posted on its corporate blog a “guide” to how the company would be disclosing its results As you can see, they provide direct hyperlinks to HP’s official IR website, the corporate blog, newsroom, Facebook page, twitter, etc. 15
  • 16. Case Study: HP Third-Quarter Earnings And here’s how it all played out on the actual earnings day. In additional to fulfilling its traditional reporting requirements (PR wire services, HP news site, etc.), in parallel it also unleashed its results and story across the spectrum of digital and social media channels Phase 2: Earnings Day 16
  • 17. You can learn more about Ketchum’s Digital Practice and our ideas about digital communications channels in the Investor Relations sector by visiting: http://blog.ketchum.com Ketchum Contacts: •Cynthia Chan, Account Director & APAC Social Media Strategist: cynthia.chan@knprhk.com •Josh Nova, VP & Co-Director Corporate Practice: josh.nova@knprhk.com 17