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Investor Relations & Social Media: How this Evolving Communications Channel Fits into the World of Investor Relations

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from Senior Managing Director Rob Berick

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Investor Relations & Social Media: How this Evolving Communications Channel Fits into the World of Investor Relations

  1. 1. Investor Relations & Social Media How this Evolving Communications Channel Fits into the World of Investor Relations September 22, 2010
  2. 2. Agenda <ul><li>Definitions </li></ul><ul><li>Vocabulary </li></ul><ul><li>Tools </li></ul><ul><li>Usage </li></ul><ul><li>Examples </li></ul><ul><li>Getting Started </li></ul><ul><li>Resources </li></ul><ul><li>Questions </li></ul>
  3. 3. Defining Social Media <ul><li>“Social marketing injects humanity into the delivery and reception of business communications by emphasizing relationships and meaningful experiences with people rather than simple transactions with publics.” </li></ul><ul><li>“Social media is media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media supports the human need for social interaction with technology, transforming broadcast media monologues (one to many) into social media dialogues (many to many).” </li></ul><ul><li>Source: PEAK6 Online, Wikipedia </li></ul>
  4. 4. Defining Impact of Investor Relations <ul><li>Effective IR programs are believed to contribute a median premium of 10 percent of valuation, while ineffective IR programs are thought to cost a median discount of 25 percent to valuation. </li></ul><ul><li>Source: Rivel Research </li></ul>
  5. 5. Social Media Vocabulary <ul><li>Blogs – Websites with dated items of content in reverse chronological order, self-published by bloggers. Items (“posts”) are usually available as feeds and often allow for commenting. </li></ul><ul><li>Forums – Discussion areas on websites where people can post messages or comment on existing messages. </li></ul><ul><li>Micro-blogging – A form of blogging that allows users to send brief updates to an open or select group chosen by the user (think: Twitter). </li></ul><ul><li>Monitoring and alerts – The art of skimming feeds to see what topics are bubbling up, and also setting up searches that monitor when you or your organization are mentioned. </li></ul><ul><li>RSS – Really Simple Syndication – allows you to subscribe to content on blogs and other social media and have it delivered to you through a feed. </li></ul><ul><li>Wiki – Web page(s) that can be edited collaboratively (think: Wikipedia). </li></ul>
  6. 6. Social Media Tools
  7. 7. Most Common Social Media Tools for IR Source: Q4 Websystems
  8. 8. Social Media Usage Within Investment Community <ul><li>85% of financial services professionals under 50 are using social media </li></ul><ul><li>47% of institutional investors read financial blogs for investment research and ideas </li></ul><ul><ul><li>20% have used blog research to execute recommendations or investment decisions </li></ul></ul><ul><ul><li>63% in U.S. believe blogs and social networks will play an increasingly important role in investment decisions going forward </li></ul></ul><ul><li>47% of retail investors look to financial websites and blogs for investment advice </li></ul><ul><ul><li>Now ranks higher than financial advisors (39%) or brokers (36%) </li></ul></ul><ul><li>89% of journalists are using blogs; 65% social networks; 52% microblogs (e.g., Twitter) </li></ul><ul><ul><li>108 @ NYT; 66 @ WSJ; 28 @ BusinessWeek; 15 @ FT </li></ul></ul><ul><li>Source: Q4 Websystems, Brunswick Group, Cision, Ledermark, sharebuilder.com </li></ul>
  9. 9. Social Media Usage Within Investment Community <ul><li>79% of Fortune 100 companies are using at least on social media platform (e.g., Twitter, Facebook, YouTube, corporate blog) </li></ul><ul><li>65% of 100 largest international public companies have active accounts on Twitter </li></ul><ul><ul><li>54% have Facebook pages </li></ul></ul><ul><ul><li>50% have YouTube channel </li></ul></ul><ul><ul><li>33% have corporate blogs </li></ul></ul><ul><li>100% have IR websites </li></ul><ul><li>Source: Q4 Websystems, Burson-Marsteller, Dix & Eaton </li></ul>
  10. 10. Example #1 – Cisco Source: Q4 Websystems
  11. 11. Example #2 – Barrick Gold Source: Q4 Websystems
  12. 12. Example #2 – Barrick Gold Source: Q4 Websystems
  13. 13. Example #3 – Dell Source: Q4 Websystems
  14. 14. Example #3 – Dell Source: Q4 Websystems
  15. 15. Example #4 – TVI Pacific Source: Q4 Websystems
  16. 16. Example #4 – TVI Pacific Source: Q4 Websystems
  17. 17. Example #5 – HP Source: Q4 Websystems
  18. 18. Example #6 – Symantec Source: Q4 Websystems
  19. 19. Getting Started – Things to Consider <ul><li>What do you want to accomplish via social media? </li></ul><ul><ul><li>Are you looking to enhance “customer service” for current investors or are you looking to attract new investors (e.g., what’s the plan)? </li></ul></ul><ul><li>Who will own the social media “voice” to the investment community within your organization? </li></ul><ul><ul><li>And what is the time capacity of this individual? </li></ul></ul><ul><li>How will the social media component of your IR plan fit within your existing disclosure policy? </li></ul><ul><ul><li>For example, how will you respond to a market rumor? </li></ul></ul><ul><li>How will you measure success? </li></ul>
  20. 20. Getting Started – Steps to Take <ul><li>Do your homework </li></ul><ul><ul><li>Know what tools make sense for you (it’s not an all-or-nothing proposition) and how those tools will help you achieve your goals </li></ul></ul><ul><ul><li>Become fluent in the conversations already taking place about your company, where they are taking place and who the key influencers are in the social networks </li></ul></ul><ul><li>Be sure the usage of social media tools is clearly delineated in your overarching corporate disclosure policy </li></ul><ul><li>Make sure there are systems in place to monitor the ongoing conversations – both by the corporation and about the corporation </li></ul><ul><li>Practice using the tools internally </li></ul><ul><ul><li>Set up private “beta” systems for internal audiences only </li></ul></ul>
  21. 21. Resources – Free Monitoring Tools TECHNORATI BLOG SEARCH GOOGLE BLOG SEARCH TWITTER SEARCH BACKTYPE
  22. 22. Resources – Free Monitoring Tools TWEETDECK
  23. 23. Resources – Paid Monitoring Tools RADIAN6 CRIMSON HEXAGON TECHRIGY SCOUT LABS
  24. 24. Additional Resources <ul><li>Books </li></ul><ul><li>Naked Conversations Robert Scoble & Shel Israel </li></ul><ul><li>Social Media Trevor Cook & Lee Hopkins </li></ul><ul><li>Call to Action Jeffery & Bryan Eisenberg </li></ul><ul><li>Buzz Marketing & Blogs for Dummies Susannah Gardner </li></ul><ul><li>The Cluetrain Manifesto Christopher Locke, Doc Searls, Rick Levine & David Weinberger </li></ul><ul><li>The Long Tail Chris Anderson </li></ul><ul><li>Small is the New Big Seth Godin </li></ul><ul><li>Blogs </li></ul><ul><li>Investor Relations Musings </li></ul><ul><li>http:// investorrelationsmusings.blogspot.com / </li></ul><ul><li>IR Cafe </li></ul><ul><li>http:// ircafe.com / </li></ul><ul><li>IR Web Report </li></ul><ul><li>http:// www.irwebreport.com / </li></ul><ul><li>Q4 Websystems’ blog </li></ul><ul><li>http://www.q4blog.com/ </li></ul><ul><li>Jeff Matthews Is Not Making This Up </li></ul><ul><li>http:// jeffmatthewsisnotmakingthisup.blogspot.com / </li></ul><ul><li>Street Talk </li></ul><ul><li>http://blogs.dix-eaton.com/streettalk / </li></ul>
  25. 25. Contact Information <ul><li>Rob Berick </li></ul><ul><ul><li>Senior Managing Director </li></ul></ul><ul><ul><li>Dix & Eaton </li></ul></ul><ul><ul><li>216-241-4611 </li></ul></ul><ul><ul><li>216-299-3610 </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>@robberick </li></ul></ul>

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