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Investor use of digital media 2018

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The Brunswick Group conducted an online survey among buy-side investors and sell-side analysts to understand how investors use digital media platforms to research and make an investment decision.
Digital media in this report is defined as social media platforms such as Facebook and LinkedIn, as well as online tools such as search engines.
Brunswick surveyed 150 investor and analysts across North America, Europe, the UK, and Asia between November and December of 2017. Tracking data from previous waves in 2016 and 2015 is included for comparison.

Published in: Investor Relations
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Investor use of digital media 2018

  1. 1. February 2018 Investor Use of Digital Media
  2. 2. © BRUNSWICK GROUP 2017 2 Our Approach The Brunswick Group conducted an online survey among buy-side investors and sell-side analysts to understand how investors use digital media platforms to research and make an investment decision. Digital media in this report is defined as social media platforms such as Facebook and LinkedIn, as well as online tools such as search engines. Brunswick surveyed 150 investor and analysts across North America, Europe, the UK, and Asia between November and December of 2017. Tracking data from previous waves in 2016 and 2015 is included for comparison.
  3. 3. Key Findings 3 1 Investor use of digital media remains high. Investors use digital media to make investment decisions at rates comparable to 2016. However, there is a slight decline in overall use and distrust for some of the largest social media platforms. 2 LinkedIn is the most trusted platform for investors. The LinkedIn platform is used by one-in-five investors to make an investment decision and is also the only social media network that is trusted at levels comparable to mainstream financial media. 3 Search engine optimization is crucial. Investors acknowledge that they overwhelming rely on search engines for their work. Search engines are also the most trusted digital media platform overall.
  4. 4. © BRUNSWICK GROUP 2017 4 Overall Trends in Digital Media Use Despite a slight decline in use, an majority of investors still use digital media sources to investigate potential issues and ultimately make investment decisions Investigate an issue 77% 96% 90% 2015 2016 2017 Made an investment decision or recommendation based on digital media. 41% 78% 70% 2015 2016 2017 71% 66% 78% Europe laps in use of digital media to make investment decisions
  5. 5. © BRUNSWICK GROUP 2017 5 Overall Trends in Digital Media Use – By Region & Over Time Investigate an issue 80% 93% 89% 72% 95% 90% 79% 100% 91% 2015 2016 2017 Made an investment decision or recommendation based on digital media. 36% 72% 71% 38% 69% 66% 58% 96% 78% 2015 2016 2017
  6. 6. -11 -5 +2 +3 +6 +1 NA -21 NA NA © BRUNSWICK GROUP 2017 6 Leading Sources for Investors Use of search engines and blogs has declined for investors while the use of LinkedIn to investigate and make investment decisions is increasing Leading Sources for Investors Mid-Tier Source for Investors Least used sources for investors Search Engines % to investigate an issue. Blogs YouTube* Slideshare** Reddit Facebook Stocktwits % to make an investment decision Digital Media Sources 70% 67% 48% 42% 27% 22% 14% 13% 13% 12% Quora -13 -4 +7 -4 -4 +3 NA -6 NA NA Change since 2016 Change since 2016 LinkedIn Twitter 48% 42% 22% 16% 10% 11% 7% 10% 4% 4% *Was referred to as “video” in 2016 **Was referred to as “presentation sharing” in 2016 Increased use of LinkedIn to make investment decisions
  7. 7. © BRUNSWICK GROUP 2017 7 Key Sources Over Time - % Used to Investigate an Issue *Was referred to as “video” in 2016 and 2015 **Was referred to as “social media such as Facebook” in 2009 through 2015 81% 70% 47% 52% 57% 58% 59% 72% 67% 46% 48% 11% 28% 29% 28% 39% 42% 23% 33% 27% 11% 14% 23% 25% 26% 21% 22% 2009 2010 2012 2014 2015 2016 2017 Search Engines Blogs LinkedIn Twitter YouTube/Video* Facebook**
  8. 8. © BRUNSWICK GROUP 2017 8 Key Sources Over Time - % Used to Make an Investment Decision *Was referred to as “video” in 2016 and 2015 **Was referred to as “social media such as Facebook” in 2009 through 2015 61% 48% 20% 18% 24% 27% 29% 46% 42% 15% 22% 4% 12% 14% 13% 20% 16% 9% 14% 10% 5% 2% 9% 7% 9% 8% 11% 2009 2010 2012 2014 2015 2016 2017 Search Engines Blogs LinkedIn Twitter YouTube/Video Facebook
  9. 9. © BRUNSWICK GROUP 2017 9 How Digital Media is Used Digital Media is primarily used to learn about the overall market, with a smaller share using that opportunity to lean about specific companies and CEOs 70% 63% 59% 52% 27% 24% 16% 13% 77% 66% 54% 48% 35% 30% 18% 15% 45% 68% 68% 42% 29% 32% 39% 29% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% To learn more about a specific industry or sector To keep up to date with a particular company that I follow To follow market moving news To get more information about a company’s strategy To learn what activist investors are saying To learn what specific CEOs are saying To network with other investors To get tips on companies to invest in North America Europe Asia Most Frequent Use of Digital Media: Learning More About the Market Less Frequent Uses of Digital Media: Getting Specific Information about Companies, CEOs, and Activist Investors Rare Uses of Digital Media: Networking With Other Investors Question: What are the reasons you use digital media platforms to investigate an issue further for your work??
  10. 10. © BRUNSWICK GROUP 2017 10 Trusted Digital Media Sources LinkedIn stands out as one of the few social media platforms that is more trusted than distrusted by investors; there is a notably high levels of distrust for Facebook 70% 53% 52% 16% 11% 9% 5% 30% 17% 12% 20% 27% 31% 21% 21% 28% 35% 47% 49% 62% Search Engines LinkedIn Blogs Slideshare Quora StockTwits Reddit Twitter YouTube Facebook Trust Distrust Most Trusted Digital Media Least Trusted Digital MediaLess Known By Investors Question: How much do you trust the following media sources to give you accurate and useful information for your work? Net Trust +50 +26 +21 -5 -10 -19 -30 -17 -32 -50
  11. 11. © BRUNSWICK GROUP 2017 11 Trusted Mainstream Media Sources Investor trust in mainstream media is higher for print publications compared to cable networks 88% 86% 88% 70% 66% 32% 2% 7% 7% 21% 24% 49% Bloomberg Terminals Bloomberg Businessweek The Wall Street Journal The New York Times CNBC Fox Business Network Trust Distrust Question: How much do you trust the following media sources to give you accurate and useful information for your work? Net Trust +86 +79 +81 +49 +42 -17
  12. 12. © BRUNSWICK GROUP 2017 12 Trust in Platforms vs. Trust in Media Trust in digital media lags behind mainstream publications overall; search engines, LinkedIn, and blogs have the highest levels of overall trust 71% 53% 52% 30% 17% 15% 12% 11% 9% 5% Search Engines LinkedIn Blogs Twitter YouTube Slideshare Facebook Quora StockTwits Reddit 32% 66% 70% 85% 88% 88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fox Business CNBC New York Times Bloomberg Businessweek Wall Street Journal Bloomberg Terminals Most Trusted Least TrustedLeast Trusted %TotalTrust Mainstream Media Publications Digital Media Publications Question: How much do you trust the following media sources to give you accurate and useful information for your work?
  13. 13. © BRUNSWICK GROUP 2017 13 Trust in Mainstream Media Publications By Regions 40% 66% 53% 87% 92% 82% 17% 56% 79% 81% 86% 94% 46% 84% 84% 90% 84% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Fox Business CNBC New York Times Bloomberg Businessweek Wall Street Journal Bloomberg Terminals North America Europe Asia Question: How much do you trust the following media sources to give you accurate and useful information for your work? % Total Trust
  14. 14. © BRUNSWICK GROUP 2017 14 Trust in Digital Platforms By Regions 5% 8% 6% 6% 15% 13% 38% 57% 53% 74% 5% 8% 8% 13% 21% 22% 24% 54% 56% 68% 6% 13% 26% 19% 6% 16% 26% 38% 48% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Reddit StockTwits Quora Facebook Slideshare YouTube Twitter Blogs LinkedIn Search Engines North America EU Asia % Total Trust Question: How much do you trust the following media sources to give you accurate and useful information for your work?
  15. 15. Opportunities Challenges Implications 15 LinkedIn presents a unique opportunity to reach investors. It is the social media network with the highest level of trust, in contrast to networks such as Facebook and Twitter. Search engine optimization remains a key strategy to reach investors. They are used extensively to inform investment decisions and are trusted by the investment community. Digital media use has plateaued. While digital media informs a large amount of investment decisions, there does not appear to be increased adoption from investors compared to the previous year. There is an underlying distrust of some social media platforms. There is very high distrust of the largest social media platforms: Facebook, YouTube, and Twitter.

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