KW Digital's guide to what the capital markets require from digital corporate communications

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We asked business journalists, analysts and investors how
they use corporate websites and social media when looking for information about listed companies. Included were questions about general company and press information as well as information about reporting, share, IR, governance and CR.

301 stakeholders from 20 sectors from Europe and the rest of the world, participated in the Capital Market survey 2014.

Based on the findings, we present our tips on how to create
engaging online corporate content.

Published in: Data & Analytics
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KW Digital's guide to what the capital markets require from digital corporate communications

  1. 1. SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 KW DIGITAL’S GUIDE TO: What the capital markets require from digital corporate communications
  2. 2. 2 3SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 We asked business journalists, analysts and investors how they use corporate websites and social media when looking for information about listed companies. Included were questions about general company and press information as well as information about reporting, share, IR, governance and CR. The demand for fundamental functions was also investigated. 301 stakeholders from 20 sectors from Europe and the rest of the world, participated in the Capital Market survey 2014. Based on the findings, we present our tips on how to create engaging online corporate content. KW Digitial Capital Markets survey 2014 300+ Respondents Sectors From Africa, Asia, America, Europe, Middle East 20Sell-side analysts 42 % Buy-side analysts 26 % Business journalists 20 % Other 14 % Contents Meet the stakeholders................................................................................4 Stakeholders’ ­channel and content preferences........................................... 12 Channel preferences........................................................................... 13 Content that attracts your stakeholders................................................. 15 Raise the profile of your annual report....................................................... 25 Annual report..................................................................................... 26 Different ways of reading the annual report............................................ 29 Social media, from a No-No to a must have................................................. 35 Growing in magnitude but still maturing................................................ 36 Reach your target group in social media................................................ 38 Mobile and Apps...................................................................................... 41 Mobile devices – the respondents have many and use them frequently............................ 42 Four out of ten use apps...................................................................... 44 10 tips on how to improve your digital corporate communications............. 48 About KW Digital................................................................................ 51
  3. 3. 4 5SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 MEET THE STAKE- HOLDERSThe capital market is a complex ecosystem in which a wide range of participants have different information needs and ways of accessing information. In the report that follows, we present three typical stakeholders that visit corporate websites regularly: the business journalist, sell-side analyst and buy-side analysts (including institutional investors). Businessjournalist Sell-sideanalyst Buysideanalyst
  4. 4. 6 7SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Most used sources for company information Business journalists uses many different sources to find company information. They rely primarily on the corporate website for a steady flow of company information but in many cases they get their scoops from other sources. After the corporate website, news agencies and database services including Datastream, Bloomberg and Reuters Financial are the most used sources. Both the online and printed version of daily business papers, including the FT and WSJ, are also important sources. Journalists will, more than any other stakeholder, rely on social media platforms for information, rating Wikipedia, LinkedIn and Twitter as their preferred channels. In addition, journalists will from time to time need to check the accuracy of news flows or verify summarily released information. In these instances, the quality of their work will critically depend on ease of access to corporate sources. Most requested content that journalists typical require 1. Contact information with telephone numbers and emails 83% 2. Latest online annual report 83% 3. Key figures in tables on-screen 82% How business journalists read the annual report For business journalists it is very important that the annual report can be found on the website. As many as 83% of all business journalists find the annual report in an online format very important on a corporate website, while 77% find the PDF format very important. One in ten read the printed version, and about as many read the reports in Google News. The business journalists’ job is to gather information about news and events that impact on the economy and to distribute their work through mass media. Business journalists As 85% read annual reports on desktop, 50% on laptop and a third use tablets, it is important that the annual report is adapted to mobile devices. The mobile journalist Almost 50% of the journalists think it is very important that corporate websites work well on their mobile devices/smartphones. 60% visit corporate websites more or less regularly from mobile devices. They commonly use iPhone and Samsung ­Android, and three out of four use both a smartphone and a tablet. To give journalists news and updates 1. Email 94% 2. News agencies (Bloomberg, Reuters etc.) 46% 3. Twitter 29% Company disclosures The journalist is willing to use social media for company disclosures. More than two thirds are open to these channels. Information They highly value both brief and detailed information. Wish more of corporate websites The journalist is generally rather dissatisfied with corporate websites and wishes that they were updated more frequently, more transparent and easier to navigate. A specific request is that a personal media contact with name, email address and telephone number should be easy to find. 43%
  5. 5. 8 9SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Sell-side analysts Most used sources for company information The sell-side analyst primarily looks for company information on the corporate website and via independent online sources such as Datastream, Bloomberg and Reuters Financial. After that they turn to the corporate website and online daily business papers including the FT and WSJ. Among social media channels, Wikipedia is the most popular, which is used by almost half of the sell-side analysts. Most requested content that sell-side analysts typically require 1. Latest interim report presentation 94% 2. Latest annual report in PDF 93% 3. Financial presentations from summits, AGMs 93% How sell-side analysts read the annual report The sell-side analyst prefers the annual report in PDF format and reads it most often on desktop. This applies to more or less all sell-side analysts. More than half also tend to download then print it out. However, the online version is more important than in previous years, and three out of four consider it very important. The sell-side analyst’s job is to evaluate the company on behalf of a brokerage firm, evaluating companies for future earnings growth and other investment criteria. The mobile sell-side analyst More than half of the sell-side analysts visit corporate websites from mobile devices more or less regularly. Of those who visit corporate websites from mobile devices nine out of ten use a tablet and eight out of ten use two or more devices. To give sell-side analysts news and updates 1. Email 100% 2. Calendar alert 24% 3. News agencies (Bloomberg, Reuters etc.) 22% Company disclosures The sell-side analyst is becoming more and more inclined to use social media for company disclosures, although there is still some skepticism. 34% are open to these channels. Information Almost all sell-side analysts are primarily interested in finding detailed information. It is also very important that the website is easy to navigate and information is easy to find. Pleased with corporate websites The sell-side analysts are generally satisfied with corporate websites, but also think that there is much that can be improved. Requirements from the sell- side analyst are that there should be an archive of older reports, presentations and financial figures readily available. 71%
  6. 6. 10 11SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Buy-side analysts Most used sources for company information Buy-side analysts primarily access database services and news agencies such as Bloomberg and Reuters when looking for information about companies. After this, they turn to the corporate website and daily papers, both online and printed. Among social media channels, 37% use Wikipedia and 20% each use LinkedIn and Twitter. Most requested content about listed companies that buy-side analysts typically require. 1. Latest annual report in PDF 93% 2. Latest interim report in PDF 90% 3. Latest interim report presentation 89% How they read the annual report The buy-side analyst prefers to read the annual report in PDF format. They will usually read it on their desktop but 40% also read it on mobile devices. The mobile buy-side analyst Buy-side analysts/institutional investors use mobile devices quite frequently when they visit corporate websites. Nine out of ten use more than one smartphone or tablet and it is common for buy-side analysts to use three or more mobile devices. Buy-side analysts (institutional investors included) work for buy side money management firms such as pension funds, mutual funds and hedge funds with a mandate to find investment opportunities that improve the net worth of the portfolio they work for. To give buy-side analysts news and updates 1. Email 95% 2. News agencies (Bloomberg, Reuters etc.) 53% 3. Calendar alert 22% Company disclosures This stakeholder group is the least willing to use social media for company disclosures and do not use social media for corporate information to any great extent yet. 22% are open to these channels. Information Buy-side analysts are predominantly interested in finding detailed information, although it is important that summarized information is also available. Pleased with corporate websites Buy-side analysts are in most cases satisfied with corporate websites, although there are always things that can be improved. Financial presentations and reports as well as information about growth drivers are essential on the corporate website. 77%
  7. 7. 12 13SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 STAKEHOLDERS’ ­CHANNEL AND CONTENT PREFERENCES The KW Digital Capital Market survey 2014 indicates that corporate websites need to continuously improve to thoroughly address the needs of data-hungry audiences. Although 85% of users have ranked the corporate website as a very important source of information, only 69% are fully satisfied with it. To compete with alternative information sources and become a trusted go-to source, the corporate website will have to provide frequently updated, easy-to-access quality content; the reason why both content, functionality and findability are of paramount importance. Alongside database services and news agencies, the corporate website is the most frequently used source. The success of these other sources stems from a combination of continuous updates and quality content. They also offer subscription services and make regular use of platforms like Twitter or LinkedIn. Update visitors through the right channel 98% of survey respondents say they want to receive company news by email. This means that sending out newsletters or news updates by email can be a great way to complement the corporate website. In addition, calendar alerts, RSS feeds and Twitter are the most popular sources for updates, the latter especially among journalists in which about one third use it for company news. Channel preferences According to survey results, 99% of the stakeholders use the corporate website for company information and 85% rate this channel as very important. Online business magazines Businessweek.com fortune.com + other magazine websites 49% 47%Business magazines (e.g. Business Week, Fortune) 65 % Social media Twitter 47% LinkedIn 42% Facebook 20% Corporate blogs 26% Daily business papers (e.g. FT, WSJ) 69 % SEC Edgar and other regulatory databases 52% Trade press websites (sector-related, industry-specific magazines) 56 % 56% Business journalists: what stands out among the profiles Sell-side analysts: what stands out among the profiles Buy-side analysts: what stands out among the profiles
  8. 8. 14 15SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Although providing the right content should be straightforward, our past research shows that websites do not always deliver. According to our survey, the most requested items are the latest annual report, the latest financial report and the latest interim report presentation, all of which focus on the company’s current situation. Visitors also increasingly look for the company’s growth drivers and financial targets. Level of detail Level of detail is another aspect that should deserve closer attention. It is imperative to provide levels of information and interpretation to suit a range of stakeholders as one size does not fit all. Whilst business journalists request both brief and detailed information, 85% find brief information very important and 81% want detailed information, analysts prefer a deeper analysis of financial issues. Just over half of the analysts and investors consider the availability of brief information to be very important. Content that attracts your stakeholders A corporate website posting engaging, easy-to-find, and up-to-date content will attract a regular following. The challenge is to reorganise and regroup content, tailoring it to specific stakeholder needs. Datastream, Bloomberg, Reuters Financial & other databases and/or news agencies The corporate website ft.com, wsj.com & other daily paper websites Daily business papers (e.g. FT, WSJ) Trade press websites (sector-based magazines, industry-specific) Trade press (sector-based magazines, industry-specific) SEC Edgar and other regulatory databases Business magazines (e.g. Business Week, Fortune) Wikipedia businessweek.com, fortune.com + other business magazine websites Yahoo Finance, Google Finance + other free portals Industry-specific chats/ blogs/discussion forums Corporate discussion forums/customer forums LinkedIn Twitter Corporate blogs 86 % 85% 65% 63% 49% 46% 43% 41% 34% 29% 25% 23% 23% 21% 20% 20% Sources used for information about listed companies
  9. 9. 16 17SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Make it look appealing Most respondents, 80%, think it is important that corporate websites look ­appealing but only 43% find this very important. This sentiment is shared by all stakeholders, with only small variations. ­However, a website’s appearance is something that subconsciously affects ­visitors and their impressions of the company. It is therefore essential to ensure their viewing experience is optimised. Support long text with illustrations and interactive functions Although content is king, there is also a hosting court. Content without adequate functionality just drifts loose without capturing the visitor’s attention. It is necessary that the website presents illustrations and interactive functions that explain text and tables. 42% find this very important. However, with regard to interactive features, only 21% feel that videos and animations are very important. Findability If the first step is to post useful content, the next is to make sure visitors will find it. The internal search engine leads the visitor to knowledge. It makes expanding content on websites and deeper content structures more findable, particularly when the visitor does not enter the website via the homepage. Users today are experienced in searching for content via external search engines and have high standards for finding relevant information. Of all respondents, 81% find the internal search engine important and 54% find it very important. However, only 46% consider it to give them relevant results. Nearly two thirds of the buy-side analysts are dissatisfied with internal search engine results, making them the least pleased stakeholder group. Increase findability Always aim to serve the user with the correct information as early as possible in the search process. Use your analytics tools and website strategy and: ● Include the most demanded information from stakeholders on the homepage and landing pages ● Offer auto-suggests for information directly in the search box ● Offer customised search results pages and make sure that the list provides relevant results ● Arrange your search results page so that the information presented is easy to navigate ● Use a navigation structure and names for links, headings and sections that your visitors are familiar with and know how to use
  10. 10. 18 19SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Get the financial information right All the stakeholders regard the latest annual report, financial report and interim report presentation as highly relevant content. Archives of reports and presentations are also popular among the stakeholders, and especially among analysts and investors. They also highlighted a need for growth drivers, financial targets and key figures. However, the stakeholder groups do not share the exact same needs. Business journalists request more summarised information while analysts and investors are looking for more detailed information. Looking at the annual report, journalists prefer the online version while analysts and investors still prefer the PDF version. Most important financial content Latest annual report in PDF Latest interim report presentation Latest interim report in PDF Financial presentations from summits, general meetings Archived annual reports Growth drivers (key drivers for growth) Latest online* annual report Latest online* interim report Financial targets Key figures in tables on screen 89 % 84% 84% 80% 80% 80% 77% 75% 74% 74% 84% The graph shows the percentage of respondents that find the information very important, ranking it a four or five on a scale from 1–5, where 1 is least important and 5 is most important. *The online annual report is either presented on a microsite or in a separate section on the corporate website As mentioned earlier, different stakeholders are looking for different type of content. Business journalists are of course more interested in media related information, especially content related to press releases. Analysts and investors on the other hand are primarily looking for reports and presentations. Business journalists The most important content for the business journalist on a corporate website is a personal media contact. After that the online version of the annual reports, key figures, a press release archive and fast facts about the company. The ability to filter press releases by date and category is also highly valued and for virtually all who think that a release archive is important, it is a vital feature. A link to the latest report and press release as well as brief information about the company’s business should also be available on the homepage too. Top five most demanded information among business journalists Media contact (telephone number and email) Latest online annual report Key figures in tables on screen Archive of press releases Fast facts with key information Link on start page to latest financial report Link on start page to latest press release Ability to filter press releases by time and category 83% 82% 81% 80% 85% 84% 81% 83 % The graph shows the percentage of respondents that find the information very important, ranking it a four or five on a scale from 1–5, where 1 is least important and 5 is most important. Adapt content to audience
  11. 11. 20 21SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Sell-side analysts Annual and interim reports as well as a report archive are vital for the sell-side analysts. Most important, are however the latest interim presentations and financial presentations from summits and general meetings. To avoid detours and unnecessary clicks to get to the latest report and press releases, there should be links to these on the homepage. Top five most demanded information among sell side analysts Latest interim report presentation Latest annual report in PDF Financial presentations from summits, general meetings Latest interim report in PDF Archived annual reports Link on start page to latest press release Link on start page to latest financial report Ability to filter press releases by time and category 93% 93% 90% 88% 88% 85% 83% 94 % The graph shows the percentage of respondents that find the information very important, ranking it a four or five on a scale from 1–5, where 1 is least important and 5 is most important. Buy-side analysts Also for buy side analysts and institutional investors, the latest annual and interim reports are the most important features on corporate websites. Besides this, the latest interim presentation and information about markets growth drivers as well as business operations are the most requested content. Information about growth drivers can be supplemented with an outlook for the coming years from the company’s point of view, which is also high in demand. Top five most demanded information among buy side analysts and institutional investors Latest annual report in PDF Latest interim report in PDF Latest interim report presentation Information about the business operations Growth drivers (key drivers for growth) Link to latest financial report Link to latest press release Ability to filter press releases by time and category 90% 89% 87% 87% 86% 80% 68% 93 % The graph shows the percentage of respondents that find the information very important, ranking it a four or five on a scale from 1–5, where 1 is least important and 5 is most important.
  12. 12. 22 23SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 The tables shows the percentage of respondents that find the information very important, ranking it a four or five on a scale from 1–5, where 1 is least important and 5 is most important. About us In the about us section, it is still information on the company’s business that is most in demand. Geographical and operational information as well as data about employees, production and sales are highly requested. Content Very important Information about business ­operations 82% Geographical spread of ­production and sales 79% Sector description, market share and competitors 75% Press An archive of press releases is the most important content in the press section. Almost four out of five in the survey say that it is very important. Almost as many think that the ability to filter press releases by date and category is a must-have on the corporate website. Content Very important Archive of press releases 79% Contact information with ­telephone numbers and emails 71% Transcripts from teleconferences in PDF format 69% Financial reporting The latest annual report is the most important piece of content on the corporate website. Almost 90% say that an annual report in PDF format is very important and three out of four think the online version is very important. The online version is very popular among business journalists, while analysts and investors Most important content per section according to the stakeholders primarily prefer the PDF version. Almost as highly valued are the latest interim report and financial presentations. Content Very important Latest annual report in PDF 89% Latest interim report presentation 84% Latest interim report in PDF 84% The share Share information is particularly in demand among investors and analysts. They rate information about shareholdings and the company’s dividends as most important. Business journalists generally have a lesser demand for share information, requesting general share information and standard share graphs. Content Very Important Information about major ­shareholders/free float 67% Dividend policy 66% Dividend history 65% Investor relations In the investor relations section, content about growth drivers is the most requested. It’s important to present the factors that influence the company’s market and future and to inform stakeholders about the company’s expectations around future challenges and market influences. Financial targets, achievements and key figures, which are very useful when making assessments of a company’s future value and profits, are also among the most demanded content in this section. Content Very important Growth drivers (key drivers for growth) 80% Financial targets 74% Financial target achievements 71%
  13. 13. 24 25SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Corporate governance The most important content within the governance section is information about the board of directors and group management. If presented in detail, analysts and investors can make informed judgments about the experience and strength of the company’s executive management. Another highly requested piece of content is the breakdown of board share transactions. It is particularly requested by analysts and investors, but provides good transparency for all stakeholders, and increasing the company’s credibility. Content Very important Information about board of ­directors 63% Management and board share transactions 61% Information about group ­management 61% Corporate responsibility (CR) Most important in the CR section is an explanation of the company’s CR- strategy. It is also important to explain how the CR-strategy relates to the business strategy and to illustrate how CR-related activities impact on the company’s day-to-day operations. Content Very important Explanation of CR strategy and link to overall strategy 41% Environmental data, targets and achievements/KPI 37% CR/Sustainability section on ­corporate website 36% RAISE THE PROFILE OF YOUR ANNUAL REPORT Annual reports have come a long way since their humble beginnings. Throughout, they have benefited from the technology and thinking on how to spread knowledge and raise awareness of the company’s achievements. As our survey shows, companies are still far from finding a format that caters to everyone’s needs.
  14. 14. 26 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Transparency and comparability are keywords for the structure of the report. In order to attract a wide range of capital markets’ users, a digital annual report needs to be scalable, sharable and usable, whilst a printed annual report needs to be legible and easily understood. No matter what format, the annual report needs to discuss the factors that the stakeholders see as important, in a structured way. While an annual report cannot serve all, a good report includes elements which take industry as well as business into account. The demand for online annual report is increasing Last year, 67% of the sell-side analyst ranked the online annual report as very important. This year 74% does. For buy side analysts and institutional investors the increase is from 70% to 75%. The demand for the online annual report among business journalist is still rather high. This is the group of stakeholders embraces this format the most as 83% find it very important. Of all respondent in the survey 35% read the online annual report, but as many as 77% find it very important. Still, annual reports are mostly read as a PDF; either on screen or downloaded and printed. This is the preferred format for analysts and investors. Annual report A good annual report is a competitive advantage in the chase for capital and long term credits and is an excellent supportive decision document. A good annual report is also adjusted to the reader, including when and where they read it. The printed version is still read by 30% of stakeholders. Only a small small percentage of the respondent to the survey download reports via apps. The percentage of respondents that find each version of the digital annual report very important Latest annual report in PDF Latest interim report in PDF Latest online annual report Latest online interim report 84% 77% 75% 89 % The graph shows the percentage of respondents that find the content very important, ranking it a four or five on a scale from 1–5, where 1 is least important and 5 is most important. Many choose to read the annual report on mobile devices Evolving reading habits and multiscreen usage have affected how the capital markets’ stakeholders read the annual report. Over the last couple of years there has been a growing demand for the report to be adaptable to different screen sizes. Currently some 38% of all respondents read the annual report from laptops, 28% read annual reports on tablets and 6% from smartphones. The trend in mobile usage is set to continue over the next few years. Therefore companies are well advised to focus on offering responsive online reports, providing an optimal viewing experience whatever device the stakeholder choses to use. The online report enables customisation and garners valuable insight One of the major differences between the online annual report and the PDF or printed ones is that the digital report can offer interactivity and customisation to an extent the printed cannot. Web analytics also provides the ability to track and garner insight into how digital reports are accessed – a powerful tool that cannot be extended to the PDF and printed versions. Digital annual reports • The online annual report is either presented on a microsite or in a separate section on the corporate website • The PDF can be read either on screen or be downloaded and printed by the visitor Printed annual report • The printed annual report is a printed booklet
  15. 15. 28 29SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 BUSINESS JOURNALIST The business journalist is the stakeholder that has embraced the online version of the annual report the most. As many as 83% of journalists in the survey say that the online version of the annual report is very important on a corporate website. We know from previous studies that only a minority of companies, despite high demand, publish an online version of their annual report. With that in mind, the two thirds of business journalists who read online annual reports is relatively high percentage. The digital trend is high among journalist as nearly 90% access the PDF version and 77% find it very important. 9% also choose to read the annual report from Google news, though it is still quite new. Moreover, only one out of ten read the printed version. Because virtually all companies offer a PDF version of the annual report, it automatically becomes the most widely used and preferred option for stakeholders. 58% still prefer the more widespread PDF version while 32% of journalists say they prefer the online annual report. 85% of business journalists read the annual report on their desktop, 47% on their laptops and 30% on tablets. Different ways of reading the annual report find the online PDF annual report very important find the online annual report very important 13% read printed version 9% read in Google News read the online annual report as a separate webpage or section on the corporate website read the annual report from a PDF (on screen or printed) 77 % 63 % 83 % 85 % 47 % 30 % Devices used to read Annual report 89 % find an archive of annual reports very important find an archive of interim reports very important 58 % 71 % Online annual report Annual report in PDF Archive of annual report BUSINESS JOURNALIST
  16. 16. 30 31SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SELL-SIDE ANALYST The sell-side analyst prefers the annual report in PDF format and reads it most often on desktop. This applies to more or less all sell-side analysts. More than half also tend to download and print it. The online version is however more important than in previous years, and three out of four consider it very important. About a third of sell-side analysts also read traditional printed annual reports. As a tool in their daily work, 88% find it very important with an archive of annual reports available on the corporate website. Equally important is an archive of interim reports. 87% of the sell-side analysts read the annual report on a desktop, while a third read it from a laptop and over a fifth from tablet. find the online PDF annual report very important find the online annual report very important 33% read printed version 3% read from apps read the online annual report as a separate webpage or section on the corporate website read the annual report from a PDF (on screen or printed) 93 % 23 % 77 % 87 % 33 % 22 % Devices used to read Annual report 97 % find an archive of annual reports very important find an archive of interim reports very important 87 % 88 % Online annual report Annual report in PDF Archive of annual report SELL-SIDE ANALYST
  17. 17. 32 33SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 BUY-SIDE ANALYSTS The buy-side analyst and institutional investor have a fairly similar usage pattern to the sell-side analysts when it comes to annual reports. As with sell-side analysts, they think that the PDF version of the annual report is very important. About as many think that the interim PDF version is very important and three out of four think that the online version of the annual and interim reports are very important. About a third of the buy-side analysts read annual reports in printed format. 91% read the annual report on a desktop, 37% read it from a laptop and no less than 40% read it from tablet. find the online PDF annual report very important find the online annual report very important 31% read printed version 3% read from apps read the online annual report as a separate webpage or section on the corporate website read the annual report from a PDF (on screen or printed) 93 % 36 % 75 % 91 % 37 % 40 % Devices used to read Annual report 96 % find an archive of annual reports very important find an archive of interim reports very important 64 % 76 % Online annual report Annual report in PDF Archive of annual report BUY-SIDE ANALYSTS
  18. 18. 34 35SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SOCIAL MEDIA, FROM A NO-NO TO A MUST HAVE Corporate and financial information in social media has gone from a big NO-NO, to a must-have in the past five years. Legislation allows it, stakeholders demand it and an increasing number of companies are doing it.
  19. 19. 36 37SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 General company information Career information Press Information Press Information General company information Corporate governance Press Information Financial Information Press Information General company information Press Information 41 % 25% 13% 13% 12% 12% 10% 10% 9% 9% 8% Reputation of key executives Reputation of key executives Company news Videos, pictures, presentations Reputation of key executives Company news Company news Videos, pictures, presentations Company events Reputation of key executive Company news 23 % 17% 16% 14% 14% 11% 10% 10% 9% 9% 3% But the use of social media is still maturing. Investor relations stakeholders in Asia are, according to Brunswick Group, more active social media users, which could be explained by the fact they tend to be younger than their western counterparts. Young investors are growing up expecting to get information from many different sources. Five years ago, social media activity was completely blocked at many listed companies and at some companies it still is. So, expect the number of financial stakeholders using social media to rise and make sure to package your content in different ways, depending on the characteristics of the channel and what the stakeholders expect. Wikipedia information in the front seat Wikipedia is not a typical social network site. Some don’t even consider it a social media site despite the fact users can interact with each other, collaborate and have their own profiles. No matter the label, Wikipedia is the second stop (after the corporate website) for most financial stakeholders looking for information about companies. Business journalists are the most active users of Wikipedia. More than half of them use Wikipedia to find general company information. Other typical information they look for includes corporate governance and reputation of key executives. Growing in magnitude but still maturing Our research show that 72% of all respondents use social media for accessing any kind of information about listed companies and correlating numbers are shown in other research*. Among the stakeholders, journalists are the most likely to use social media for company disclosures (66%), while investors are the least likely (22%). Twitter is the place to get news The most popular social media channel to get company news is Twitter. Twitter is fast and the limitation of 140 character forces the publisher to be concise and clear with the message – a perfect match for a journalist or investor scanning the web for information. Note well though that this year’s climbers in the news category are LinkedIn and Google+. LinkedIn LinkedIn is used by around one third and is one of few channels where all stakeholders are reached. The majority look for career information, general company information and press information. The types of content that are most requested include reputation of key executives and company news. Which channels do you use to find the following company information topics? Most requested type of content in each channel: *Such as the 2014 Brunswick Investor Use of Digital and Social Media Survey.
  20. 20. 38 39SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 BUSINESS JOURNALISTS 83 % 40% 55% 30% 30% General company information on Wikipedia Career information on LinkedIn 33% Reputation of key executives on Wikipedia 30% Press information on Twitter 27% Press information on LinkedIn 33% Company news on Twitter 33% LinkedIn 26% Company news on LinkedIn 26% 51% Use social media for any kind of corporate information The percentage of business journalists that use each channel for the specific purpose. Reach your target group in social media SELL-SIDE ANALYSTS Use social media for any kind of corporate information General company information on Wikipedia Career information on LinkedIn 24% Reputation of key executives on Wikipedia 23% Google+ 15% & LinkedIn 14% Videos, pictures and presentations 16% Company news on Google+ 15% Press information on Google+ 14% Press information on Twitter 11% 36% 25% 47% 22% 20% 71 % The percentage of sell side analysts that use each channel for the specific purpose.
  21. 21. 40 41SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 BUY-SIDE ANALYSTS Use social media for any kind of corporate information 67 % General company information on Wikipedia 41% LinkedIn 15% & Google+ 11% Reputation of key executives on Wikipedia 23% LinkedIn 14% & Google+ 12% CR information on LinkedIn 11% Company news on Twitter 13% & LinkedIn 10% 41% 13% 48% 23% The percentage of buy side analysts and institutional investors that use each channel for the specific purpose. MOBILE AND APPS The proportion of mobile traffic on company websites is increasing both steadily and rapidly. In just a few years, there has been an increase from only a few percent to over a quarter of all traffic.
  22. 22. 42 43SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 One of the reasons for the increase is of course the smartphone and tablet revolution of the late 00s. This trend has continued and as the proportion of visitors using mobile devices has doubled in the past year, largely due to the steady adoption of tablets. There is a strong indication that the growth will only continue. Number of visitors from mobile devices to 15 corporate websites Respondents use more than one mobile device 81% of those who visit corporate websites from mobile devices use two or more mobile devices. This also supports the need for companies to adapt to mobile technology to succeed in keeping pace with competitors. Mobile devices – the respondents have many and use them frequently 55% of the respondents say that they visit corporate websites using a tablet or smartphone more or less regularly. Buy-side analysts (63%) followed by business journalists (60%) are the most frequent users of mobile devices when visiting corporate websites. The percentage of respondents that that visit corporate websites from mobile from one or more devices 58% 23% 23% Using 1 device Using 2 devices Using 3+ devices 19% 23% 58% Apple is the most common brand Among all respondents iPhone (49%) and Samsung (30%) are the most popular smartphones. For tablets, iPads (83%) are by far the most common. Only 20% are Samsung tablet users. 35% 30% 25% 20% 15% 10% 5% 0% June 2011 June 2012 June 2013 May 2014 5% 17% 24% 33% 27%
  23. 23. 44 45SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 The type of apps most frequently used are corporate/IR apps, with 23% using them. Corporate magazines in Apple Newsstand and Google News are the most used apps by business journalists while corporate/IR apps are most used by ­analysts and investors. Company disclosures the third most looked for information in apps Seeing what kind of information users look for via apps, financial reporting ­content, share information and company disclosures are the most popular. Four out of ten use apps About 40% of all respondents use an app to receive information about listed companies. 83% 33% 28% Use any app Corporate Magazines (Newsstand/ Google News) Aggregated apps Corporate /IR apps 63% 79% 84% Press information Company information News & events 38 % Type Content 60 % 93 % 72 % 48% 37% 26% 76 % 77% 18% Use 2+ devices Visit corporate websites from mobile devices 14 % Use 3+ devices BUSINESS JOURNALIST
  24. 24. 46 47SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 28% 62% 23% Corporate Magazines (Newsstand/ Google News) Aggregated apps Corporate /IR apps 53% 63% 79% Press information Company information News & events 43 % Type Content Use any app 54 % 92 % 82 % 51% 32% 34% 90 % 74% 28% Use 2+ devices 24 % Use 3+ devices Visit corporate websites from mobile devices SELL-SIDE ANALYSTS 33% 71% 17% Corporate Magazines (Newsstand/ Google News) Aggregated apps Corporate /IR apps 57% 62% 76% Press information Company information News & events 39 % Type Content Use any app 63 % 80 % 82 % 69% 92 % 22% 77% 18% Use 2+ devices 24 % Use 3+ devices 19% Visit corporate websites from mobile devices BUY-SIDE ANALYSTS
  25. 25. 48 49SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 Channel preferences  Keep your website updated 99% of the stakeholders are visiting corporate websites for company information. One of the most common complaints about them is that they are not frequently updated.  Send out your news by e-mail E-mail is by far the most popular way to receive company news. But do not forget to add Calender alerts, use RSS feeds and post news on Twitter to meet the demand of all of your stakeholders. Content that attract your stakeholders  Offer both brief and detailed information Different professions require different level of detail of the information. Therefore, ensure that both brief and general as well as detailed information are available.  Focus on the most requested content Annual reports, interim reports, financial presentations and a well-structured press release archive are highly in demand among all stakeholders. If you deliver these effectively, you’ve come a long way.  The most important information first Nine out of ten think it is very important that both the latest press release and the latest financial report are available on the home page. Do not let your visitors have to search for this information! 10 tips on how to improve your digital corporate communications Use interactivity  Interactive features Interactive features are a great way to lighten up long texts. Visualization of data in an interactive manner makes it also much easier to understand.  Develop your internal search engine Visitors have high an expectation on search engines and today more than 50% are in general dissatisfied with the results they generate. Annual reports  Meet stakeholders demands with an online annual report Although the PDF version of the annual report is the most frequently used, there is a continued high demand for online versions. Not less than 77% consider it very important that companies offer one. Social media  Three of four use social media for company information. Wikipedia for company information and Twitter for news. Reach all stakeholders on LinkedIn where they look for career information, general company information and press information. Mobility  A quarter of the traffic from mobile devices The visits of business websites from mobile devices continues to steadily increase. If you want to be at the forefront today, it is a must to adapt to mobility.
  26. 26. 50 51SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 SPOTLIGHT: KW DIGITAL CAPITAL MARKETS SURVEY 2014 About the Capital Markets survey This spotlight is produced by KW Digital. It is based on the KW Digital ­Capital Markets survey 2014 which is carried out yearly to understand what content business journalists, sell-side analysts, buy-side analysts and institutional investors expect from corporate websites and other digital channels. The purpose of the report is to better help companies meet stakeholders’ demands. The report summarises the responses of the survey which was distributed in February 2014. 25 questions were asked ranging from the most important content, to the most trustworthy sources and how stakeholders use mobile devices and social media. Our research gives a good insight into what corporate websites visitors expect from digital corporate communications at the moment. The KW Digital Capital Markets spotlight 2014 is published as open research under a Creative common license. For more information about the report please contact: Linda Hultberg KWD Webranking project manager +46 8 407 20 38 linda.hultberg@kw-digital.com About KW Digital KW Digital is a digital corporate communications agency that helps companies make better use of digital channels in their corporate communications. We provide strategic advice and implementation based on our research and experience. KW Digital has more than 50 employees at offices in Stockholm and ­London, and also partners in Milan and Lisbon. For more information about KW Digital please visit http://kw-digital.com Contacts for more information: Staffan Lindgren Managing Director +46 8 407 22 12 staffan.lindgren@kw-digital.com Phil Marchant Managing Director UK +44 203 700 5554 phil.marchant@kw-digital.com

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