Presentation on the intersecting worlds of Investor Relations and Emerging Media by PR Newswire Global Director of Emerging Media, Michael Pranikoff, at the NIRI Kansas City Chapter on Feb. 20, 2012

1. Investor Relations
& Media
Emerging

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

3. 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.

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

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

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

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

9. United States Social Media Usage

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

11. Social Media Usage of Decision Makers

12. Source: LederMark Communications

13. Source: LederMark Communications

14. Website Usage by Investors
75% of pro investors use corporate websites daily or
weekly
3%
8%
Daily
32% Weekly
14%
Monthly
Yearly
Never
43%
Source: Rivel Research

15. Analyst Coverage is Diminishing
# of Sell Side Analysts
18000
16000
16000
14000
12000
10000
8000
6000
6000
4000 3000
2000
0
2000 2007 2009
Sell Side Analysts
Source: Ernst & Young

16.  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

17. 14% of Buy side & Sell Side analysts
said information found on a social
network such as Facebook
prompted further investigation on a
investment decision.
Source:
http://www.facebook.com/notes/facebook-engineering/visualizing-friendships/469716398919

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

19. The Long Tail of Corporate Content
Mainstream Media Pickup
Blogs / Twitter / Online Pubs
News Release
Immediate Online Pickup
Weekly Trade Pubs
Monthly Trades
Quarterly Pubs / Journals
Release Goes Out Search
Share
Blog
Conversation
Created by: Michael Pranikoff, PR Newswire Global Director of Emerging Media

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

21. The Long Tail of Corporate Content
Over Six Months
What Needs to happen today – Shorter Releases on a more regular basis
Amount of
Coverage
Time From Origination
Created by: Michael Pranikoff, PR Newswire Global Director of Emerging Media

22. 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

23. • 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.

24. • 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.

25. Consistent
Communications
Matters

26. Trust Over Attention
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.

27. Trust

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

29. 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.

30. Corporate Use of Social Media
Source: Q4 Websystems

31. Corporate Use of Social Media
Source: Q4 Websystems

32. Corporate Use of Social Media

33. From Corporate to Personal:
A Breakdown Of The Four
Types of Twitter Profiles
1. Pure Corporate Brand
2. Corporate with Persona
3. Employee with
Corporate Association
4. Pure Personal Account

34. 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

35. 49% of retail investors under
the age of 40 rely financial
web sites and blogs for
investment advice

36. 47% of retail investors over
the age of 40 rely financial
web sites and blogs for
investment advice

37. Best Practices for IR 2.0
Don’t have a stale cookie cutter IR Website
 Press Releases
 Events
 Reports
 Presentations
 Videos
 Etc

38. Best Practices for IR 2.0

39. Best Practices for IR 2.0

40. Best Practices for IR 2.0

41. Best Practices for IR 2.0
Upload your content to social content networks and
then embed your site + provide RSS feeds for News,
events and presentations. Make sure to link all of
the content together.
– Videos to YouTube
– PowerPoint's and Documents
on SlideShare
– Documents on docstoc
– Photos , Graphics or Charts
on Flickr

42. Best Practices for IR 2.0
1. Have a good IR website and follow best practices
2. Create compelling content
(news, events, presentations, etc)
3. Make it social & include on your site and RSS feeds
4. Use Twitter and other “Status Update” based social media
to compliment your newswire release - update with each
new content and event
5. Monitor the web and evolve over time

43. Best Practices for IR 2.0
Talk about
Blog about
Tweet about….
Corporate Social Responsibility
Over $2.7 Trillion in funds under
management dedicated to
social responsibility.
- Socialinvest.org

44. Best Practices for IR 2.0
Make Content Directional

45. 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

46. 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
I AT
F REE FALLS IN A FOREST AND NO
information.” Thus, in evaluating whether information is
public for purposes of our guidance, companies must
ONE IS THERE, DOES IT STILL MAKE A
consider whether and when: (1) a company web site is
a recognized channel of distribution, …”
SOUND?and Emerging Media
IR
http://sec.gov/rules/interp/2008/34-58288.pdf - Page 18, Paragraph 2

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

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

55. Best Practices for IR 2.0
What about
the
RISKS?

56. Best Practices for IR 2.0

57. Best Practices for IR 2.0

58. Best Practices for IR 2.0

59. Education = Success

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

61. 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.

62.  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

63. http://www.flickr.com/photos/bnoj13/4073663539/

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