Investor Relations & Emerging Media – Presented at the NIRI Capital Area Chapter on September 28, 2011

Investor Relations
&
Emerging Media
NIRI Capital Area Chapter • September 28, 2011
Source: ttp://www.flickr.com/photos/zachstern/87431231/

Michael Pranikoff
Global Director,
Emerging Media
PR Newswire
http://flavors.me/michaelpranikoff
michael.pranikoff@prnewswire.com
Twitter / @mpranikoff

Disclaimer: I am not a Guru.
All tips, recommendations, and ideas are from reading, exploring, and learning anyway that I can. I consider myself a B+ Student at best.

Website
Email
News Release
Social media
Traditional
Media
Communications Channel Complexity
Video
Tradeshows
Search
Photos / Visualizations
Blog

Old School
New School
Created by: Michael Pranikoff, PR Newswire Global Director of Emerging Media

Influencers
http://www.businessinsider.com/chart-of-the-day-radio-has-more-reach-than-the-internet-2009-11

Communications Comes Into Focus
Marketing
Public Relations
Companies want:
Direct access to consumers
Opportunities to engage with audiences
Continuous Messaging that is easy to share
Analytics, ROI
They want to communicate in a way that combines PR, Marketing and Advertising.
Investor
Relations

United States Social Media Usage

United States Social Media Usage
Source: http://www.forrester.com/Groundswell/profile_tool.html

Social Media Usage of Decision Makers

85% of financial services professionals under 50 are utilizing social media, compared with half of their older counterparts
Source: LederMark Communications

86% of those under 50 and over half of 50+ professionals agree that social networking will be an important business development tool within five years.
Source: LederMark Communications

Website Usage by Investors
Source: RivelResearch via Q4 Web Systems

Analyst Coverage is Diminishing
Source: Ernst & Young via Q4 Web Systems

52% 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 Survey Findings on New Media Usage by the Investment Community – 9/2010

14% of Buy side & Sell Side analysts said information found on a social network such as Facebook prompted further investigation on a investment decision.
14%
Facebook
Source:
http://www.facebook.com/notes/facebook-engineering/visualizing-friendships/469716398919

Are you driving the conversation?
http://www.flickr.com/photos/perspectivephotography/2090451536/

Mainstream Media Pickup
Blogs / Twitter / Online Pubs
Immediate Online Pickup
Weekly Trade Pubs
Monthly Trades
Quarterly Pubs / Journals
Search Share Blog
Release Goes Out
The Long Tail of Corporate Content
News Release
Conversation

Head
Traditional Media
Reaching Billions
Reach
MILLIONS
Online Media
SEARCH
Tail
Created by: Michael Pranikoff, PR Newswire Director of Emerging Media based on Immediate Future, 6/06

The Long Tail of Corporate Content
Over Six Months
Amount of Coverage
What Needs to happen today – Shorter Releases on a more regular basis
Time From Origination

Can Tweets Predict The Stock Market?
Indiana University Bloomington studied 9.8 million tweets from 2.7 million tweeters
Measuring the mood of the 'twitterverse' on a given day can foretell the direction of changes to the Dow Jones Industrial Average three days later with an accuracy of 86.7 %
http://www.wired.com/wiredscience/2010/10/twitter-crystal-ball

Research from Ross School of Business at the University of Michigan found a direct correlation between company Tweets around news events and tighter bid/ask spreads in the company’s shares.
This correlation was found to be most significant with small cap firms that typically do not receive news coverage.

Consistent
Communications
Matters

TrustOverAttention
Trust will continue to replace attention as the Currency of the web and business. No one will pay attention if they don’t trust you.

Where do you generally go first for news about a company?
Then where do you go?

Financial Blogs and Social Networks
Largest financial blog aggregator Partnered with Yahoo! Finance
Trading social network. Based on Twitter.
Wiki finance portal. Social interactive data.
Source: Q4 Websystems

Corporate Use of Social Media

From Corporate to Personal: A Breakdown Of The Four Types of Twitter Profiles
Pure Corporate Brand
Corporate with Persona
Employee with Corporate Association
Pure Personal Account

Best Practices for IR 2.0
Tweet about news, events and presentations and link to IR website or your news release on 3rd party sites
Manually post updates and/or use RSS feeds to automate
Start small, learn and expand conversations over time

49% of retail investors under the age of 40 rely financial web sites and blogs for investment advice

47% of retail investors over the age of 40 rely financial web sites and blogs for investment advice

Don’t have a stale cookie cutter IR Website
Press Releases
Events
Reports
Presentations
Videos
Etc

Upload your content to social content networks and
then embed your site + provide RSS feeds for News,
events and presentations. Make sure to link allof
the content together.
Videos to YouTube
PowerPoint's and Documents
on SlideShare
Documents on docstoc
Photos , Graphics or Charts
on Flickr

Talk about
Blog about
Tweet about….
Corporate Social Responsibility
Over $2.7 Trillion in funds under management dedicated to social responsibility.
- Socialinvest.org

Make Content Directional

SEC 21st Century Disclosure Initiative
Corporate websites and blogs seen as fair disclosure (under certain circumstances)
Support for shareholder forums
Opens the door to the web and social media for communications

From the SEC Commission Guidance on the Use of Company websites
“In order to make information public, it must be disseminated in a manner calculated to reach the securities market place in general through recognized channels of distribution, and public investors must be afforded a reasonable waiting period to react to the information.”Thus, in evaluating whether information is public for purposes of our guidance, companies must consider whether and when: (1) a company web site is a recognized channel of distribution, …”
If A Tree falls in a forest and no one is there, does it still make a sound?
IR and Emerging Media
http://sec.gov/rules/interp/2008/34-58288.pdf - Page 18, Paragraph 2

more multimedia = more views
Increase in average online views per press release, when multimedia elements are added.
Source: PR Newswire web analytics.

Using multimedia in your releases increases
journalist and public engagement by 35%.
According to internal sample research comparing press releases that contain multimedia with those that do not.

Which of these feeds would you look at on a mobile device? This is why visuals matter

What about
the
RISKS?

Education = Success

Best Practices for IR 2.0 – Establish Guidelines
Think both
Internal
and
ExternalCommunications
Resource:
Social Media Governance
http://budurl.com/bhqq

Best Practices for IR 2.0 - LISTEN
‘Listen’ to the web and be alerted whenever your company or related issues are being mentioned
Google Alerts and other free tools (http://search.twitter.com, http://socialmention.com) are easy ways to start the process
Identify trends and head off problems early, minimize value erosion.

Best Practices for IR 2.0 - LISTEN
PR Newswire Media Monitoring
‘Listen’ to the web and be alerted whenever your company or related issues are being mentioned
Google Alerts and other free tools (http://search.twitter.com, http://socialmention.com) are easy ways to start the process
Identify trends and head off problems early, minimize value erosion.

Disclosure of material information should follow Reg.FD guidelines
All social channels must be treated the same as traditional channels (disclosure controls)
Only previously disclosed information should be shared
Risks are from innocent updates in social networks – no different than offline disclosure rules.
Social media policy and training

Leave A Trail of Breadcrumbs
http://www.flickr.com/photos/bnoj13/4073663539/

Don’t Be Afraid To Try Something New

The most profound technologies are those that
disappear. They weave themselves into the fabric of
everyday life until they are indistinguishable from it….
- Mark Weiser

Michael Pranikoff
Global Director,
Emerging Media
PR Newswire
http://flavors.me/michaelpranikoff
michael.pranikoff@prnewswire.com
Twitter / @mpranikoff

Investor Relations & Emerging Media – Presented at the NIRI Capital Area Chapter on September 28, 2011

by Michael Pranikoff on Oct 05, 2011

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Investor Relations & Emerging Media – Presented at the NIRI Capital Area Chapter on September 28, 2011 — Presentation Transcript