The document analyzes the growing trend of companies using social media for investor relations, highlighting that usage of Twitter for such purposes rose from 35% in 2009 to 65% in 2010. It provides insights into various social platforms like Facebook, YouTube, Slideshare, and LinkedIn, emphasizing best practices for companies to effectively engage stakeholders through these channels. Overall, it concludes that the adoption of social media in investor relations is at a tipping point and is expected to continue growing.

1. Investor Relations Social MediaMarket Media Solutions***For Educational Purposes Only***

2. IntroductionMore companies are capitalizing on the opportunity to interact with key constituents by integrating social media channels into their broader communications and overall business strategy.In 2009 they analyzed early adopters who use Twitter to extend business communications and interact with investors and stakeholders.Seeing an increase in the number of companies using Twitter to supplement for investor-related material. Also seeing increased adoption by public companies of other types of social networks. Re-visited the 350 companies from original research to analyze whether they are using additional social networks for investor-related material.

3. MethodologyA company was considered to be using social networks for investor relations, if they were providing context about their company and industry, such as providing links to headlines and other content already posted on their corporate or IR websites.Examples:press releasescorporate videos (showcasing corporate assets and interview footage with the CEO/CFO regarding the latest results) industry-related newsconferencesanalyst days annual meetings. Also did a review of each company to see if they listed and/or provided links on their website to the social networks they were using.Broken down by:Social media use by sector (technology, services, natural resources…)Social media use by region (US, Canada, Europe…) Social Media Use by Market Capitalization (Large, medium, small)

4. Social Media Channels

5. Twitter65% or 237 are using it to provide investor-related material. This is a significant increase from the 35% in 2009. Most tweets linked back to press releases and presentations on their websiteUsed significantly more in the technology sector Engagement - 42% have consistent @replies, 62% retweet and 52% use #hashtags.U.S. uses Twitter significantly more than any other region.Large cap companies, followed by small and medium cap companies use Twitter the most for investor-related material.

6. FacebookTypes of Accounts:ProfilesGroupsFan pages7% or 278 companies, have a Facebook account. 37%, use Facebook to provide investor- related material. Of the 278 companies with a Facebook account, 166 posted a link to the channel on their website. Protest pages:Public forums of discussion aimed towards desired change within a company.

7. Corporate BlogsOf 362 companies, 36% or 130 have a corporate blog. 10% of companies provide investor relations contenton their blog.Higher risk.

8. YouTube203 or 56% companies have an official YouTube account and 29% use this channel to provide investor-related material *Official means that the company has registered and manages the YouTube account directly.103 post a link to the channel on their website.Uses for YouTube in IR:product and promotional videosCSR videosexecutive interviews including the CEO or CFO discussing recent quarterly resultsdiscussing a strategic acquisition or mergercorporate assets

9. SlideShare10% or 40 companies have official SlideShare accounts with all of them using the channel for investor-related material.Of the 33 companies with SlideShare accounts, five include a link to this channel on their website. SlideSharemake it easy for interested parties such as the financial media, institutional and retail shareholders (embed code is easily extracted – can be copy and pasted virtually anywhere).Uses of SlideShare in IR:To provide an overview of a strategic acquisitionTo extend their reach to investor audiences through the multiple investor-related presentations and documents posted on the channelSome companies publish their corporate presentations and embed them on their websiteHighly visible, quick access leads to increased readershipAn official account makes it easier for users to view other presentations deemed important by the company

10. LinkedInOf the 362 companies in the study, found that 93% or 337 have a LinkedIn company page.Emerging evidence that it is the most popular social network for professionals.LinkedIn allows anyone to ‘follow’ a company and receive updates.Includes basic information on the company’s current employees, new hires and recent departures; Additional information is also included on the company profile, such as news, stock quote and key statistics.Over 80% of financial services professionals use LinkedIn and say it’s critical for business development.

11. Corporate WebsitesCompanies included in study, 226 or 62% have chosen to post links on their website to the social networks they use.Companies with ‘dedicated social media pages’: Ford, Henkel, Alaska Airlines.Strongly recommend if your company is using social media, that you let your constituents know by adding a ‘Connect with Us’ or ‘Follow us’ area on your corporate website.

12. Best Practices

13. Best Practices for Public Companies Using Social MediaBecome a thought leader by sharing industry-related information.Integrate your IR social media into your existing social media efforts.Update your social networks to provide information and context for investors.Listen to and monitor the conversation on your own and other networks.Lead people to your social networks through links on the corporate website.If you have a social network account dedicated to IR – proactively reach out to shareholders and ask them to submit questions for upcoming quarterly calls or the annual meeting. Respond quickly and thoughtfully to all questions.

14. Best Practices for TwitterEnsure that the information posted on the corporation/investor website is posted simultaneously to Twitter.Provide a detailed profile that fits with the company brand and links to the website. Include information on the person(s) tweeting on behalf of the company.Provide a shortened disclaimer linking back to the full disclaimer on your website.Be clear that it is an ‘official’ account.Having a separate Twitter account for IR is good practice and lets people know they can ask IR specific questions. Clearly indicate what each separate Twitter account is used for.Use #hashtags when live tweeting to allow people to search for related tweets.Provide links to associated material.Be sure to incorporate the ‘human’ factor into your social media communication.

15. Best Practices for FacebookEnsure that the information posted on the corporation/investor website is posted simultaneously to Facebook.Provide a detailed profile that fits with the company brand and links to the website and other social media channels.Use Facebook to post supplementary corporate information such as videos or events.Provide a shortened disclaimer linking back to the full disclaimer on your website.Regularly monitor your page to ensure that inquiries are being handled properly – particularly the discussion board.Spell out the ‘Terms of Use’ or ‘Discussion Policy’ - particularly for posted comments that are in poor taste.Be clear that it is an ‘official’ account.Have a variety of tabs to categorize information and help current and potential shareholders get the complete picture of the company.

16. Best Practices for IR BlogsProvide insight and opinions on company and industry news.Use the blog to solicit questions from shareholders in advance of a company event.Post videos that provide additional commentary around company events or announcements.Provide a shortened disclaimer linking back to the full disclaimer on your website.

17. Best Practices for YouTube/SlideShareRegister an ‘official’ corporate account, even if you are not using it in the near future. Provide a detailed profile that fits with the company brand and links to the website.Monitor these sites even if you are not using them.Make sure you repurpose videos or slideshows on the company website and other social media channels.

18. Best Practices for LinkedInRegularly monitor your company’s information to make sure it is accurate.Keep a close eye on the evolution of LinkedIn as it is growing in importance to IR.

19. ConclusionThe number of company’s using Twitter for IR rose from 35% in Q3 2009 to 65% in Q4 2010.There has been an increased adoption of other social media sites in the same time.93% have a company page on LinkedInThe use of social media for IR programs is at a tipping point and will only grow.

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