CIRI BCSocial Media Workshop What every IRO should know Presented by:Darrell HeapsCo-Founder & CEOQ4 Web Systems Fall 2009

Quick PollHow many people here are on Twitter? How many Tweeting now? On Facebook?

Source: Universal McCann Wave 3 & Nielsen Online reporthttp://bit.ly/11il0Y Social Media is the Dominant Channel

Source: Ernst & Young - 2007Securing analyst coverage is more difficult3,000 est.

Websites used consistently Source: Rivel Research

Institutional adoption of social media47% read information posted on a blog which prompted them to investigate an issue further 20% read information posted on a blog which led to an investment decision or recommendation63% of US pro investors say blogs and social networks will play an increasingly important role in investment decisions in the futureSource: Brunswick Group Sept 2009 http://bit.ly/yz482

Small-cap research is onlineSource: Agoracom Sept 2009 http://bit.ly/4nXoHI

So what does this all mean?“Fish Where the Fish are”The web and social media is becoming the dominant channel Traditional channels are no longer effective on their ownPrioritizing the web and social media will help you to differentiate and compete more effectively for capital

Social Media & Investor Relations

Financial Blogs and Social Networks Largest financial blog aggregator Partnered with Yahoo!Finance4 million unique users/month – 25% institutional investorsTrading social network. Based on Twitter. Available through Bloomberg.Wiki finance portal. Social interactive data.

SlideShare and Other Content NetworksOffsite SEO means increased discoverabilityMajority not direct from companiesCompanies should be publishing to establish “voice of authority”http://www.slideshare.net/category/investor-relations

Embedded SlideShare Presentation

Companies Using Social Media

Barrick Gold on Twitter

ShareThis and Facebook

Facebook Leads Sharing

Facebook as an IR channel

Primary BenefitsLarge CapReal-time channelVoice of authorityMitigate value erosionFront run issuesSmall CapIncrease exposureGet coverageAmplified contentFind new investors

Return on InvestmentIncreased website traffic/unique visitorsIncreased media mentionsIncreased content spread and viewsAccelerated messages to the marketReducing costs/expenses

What are the risks?The risks existing whether you participate or notOnly share content that has been previously disclosed (website content should be the focus)Social media policy is key to ensuring material information is not released by mistake (travel example)

Thanks! Follow me: www.twitter.com/darrellheaps