A comprehensive presentation on Social Media tools and tips for Investor Relations and Financial Communication professionals.

1. INVESTOR RELATIONS 2.0
ARE YOU READY?

2. The following presentation is presented by Ketchum and provides an
overview of Social and Digital media’s impact on the practice of investor
relations by evaluating:
Trends Challenges Opportunities
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4. “ Now it’s the people who are taking control.”
- Rupert Murdoch, CEO, News Corp
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5. The Trends
Social Media – New Global Footprint
Explosion of communications channels -
An interactive form of communication
where you are able to be both the
broadcaster as well as the receiver of
information, and where there is an equal
balance of power between all participants.
In other words, your voice is equal to
the voice at the other end.
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6. The Trends
Increasing numbers of shareholders,
stakeholders and retail investors using and
consuming social media to understand more
about your company
• 75% of institutional and professional investors visit
your investor site on a daily or weekly basis
• 67% of online population use social networks/blogs
• 72% of internet users are part of at least one social
network, which translates to 940 million users
worldwide.
• 85% of professional financial service providers under
50 are using social media
• 89% of journalists using blogs, 65% social networking,
52% micro-blogging (Twitter)
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8. CHALLENGES
Challenges For Investor Relations Today
• Wide variety of channels and influencers – Individuals now
have a voice that is as loud as your company. Financial bloggers,
tweets, etc. can spread rumors at an alarming rate.
• Loss of control – with blogs and online forums, companies can
no longer control, to a degree that they are accustomed to, their
internal and external communications. So it is essential to monitor
the conversations to ensure what is being said is true.
• Regulatory requirements – legal and regulatory framework
presents limitations for the use of social media, but there is a clear
trend of increasing use of online social media tools by
shareholders and investors
• Internal – Employees engaged on social media networks can
become your influencers as well, but you need to consider the
regulatory and compliance implications of employees disclosing
potentially market-sensitive information online.
• Effective Analytics – How to measure the ROI for their social
media activities, evaluation method tends to focus on measuring
one-off campaigns rather than the linear activity and radiation of
the online conversation
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10. Best Practices: RegulatoryThumb
les of & Compliance
Investor Relations should play an active role in
monitoring, managing and engaging in their
companies’ activities on social networks to:
1. Ensure their firms exposure to potential compliance
risks are minimized by establishing controls and
procedures, to monitor company activities on the
web
2. Establish dedicated social media IR channels that
are the sole source for company related IR content
3. Synchronize information distribution about
regulatory updates across all channels –traditional
and digital
4. Maintain neutrality in linking to 3rd party content
about financial performance and prospects for the
company’s stock
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11. Best Practices: IR Websites
Investor Relations focus should first and foremost
be dedicated to creating a compelling investor
story through great content and information that
will help your organization compete more
effectively for capital and inform your
shareholders:
1. Accommodate Investor and analyst needs for a
variety of easy-to-use formats
2. Integrate social media/sharing capabilities into the
site, e.g. Twitter, Dig, Delicious, etc.
3. Offer distinct areas of increasing importance to the
investment community, specifically corporate
governance and sustainability initiatives
4. Build site with SBRL formatting, which is becoming
a more widespread standard
5. Integrate tools and features to better tell your
company’s story: executive blogs, podcasts, video
series, web-based sharing technologies and
mobile services
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12. Best Practices: IR Websites
There are several common best practices to consider
when evaluating your IR website presence:
1. User Experience: This incorporates design and information
architecture into a compelling site experience. This includes
prioritizing primary content, as well as ensuring information is
accessible and easily consumed
2. Brand Relevance: There should always be a strong and clear
connection between the IR website and the corporate brand
3. Usability: Site navigation and design should be “user-centric,”
placing emphasis on the content that is most important to the
user
4. Interactive Tools: Investors, especially retail investors, look for
basic online tools for tracking share price and information
5. Range of Formats: Analysts, institutional investors, retail
investors and students are accustomed to a broad range of
formats. XBRL (eXtensible Business Reporting Language) is
now being widely demanded
6. Content Delivery & Syndication: While there are divergent
opinions on the use of social media in IR, many IR websites
now incorporate at least a few digital media features.
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13. A Quick IR Website Check List
Category Tools
Stock Investment Calculator
Financial. Quarterly comparison of financials; Earnings Estimates
Disclosure
Brand Design linked to brand homepage; Brand relevant copy
Relevance and images; Mission Statement; Education Page
Usability Viewable link from homepage; Easy navigation; Legibility;
Accessibility of information with minimal clicks; Visuals in
place of text; IR-specific search bar; Drop down menus
and easily sort-able info; User briefcase
Interactive Intra-day stock information; Custom historic price data,
Tools Total return calculator; Benchmarking against relevant
indexes
Range of PDFs, Print, Audio/MP3; MS Work, PPT, Excel; XBRL
Formats
Content RSS; Executive webcast; Social media feeds; mobile
Delivery and capabilities
Syndication
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14. Best Practices: Monitor, Listen, Respond
• Companies need to be tuned into the conversation happening around
Monitor
them 24X7 around the globe that can effect their IR goals, corporate
reputation and in some cases regulatory compliance
• Consider simple and free tools like Google Alerts or more sophisticated
and comprehensive services from third party providers
• Understand how to separate the noise and focus on the critical
Listen information about your company’s IR priorities
• Focus on issues that are a threat to your company’s reputation in the
marketplace; erroneous information that is being spread
• Identify influencers and stakeholders that have an impact on your
companies IR priorities (e.g. shareholder activists, government &
regulatory bodies.
Respond • Evaluate opportunities to better engage your key stakeholders through
new digital and social media channels with great content
• Always weigh your company’s response online to ensure it is within
relevant market compliance and regulatory standards
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15. Case Study: HP Third-Quarter Earnings
You might consider HP as the gold standard or at least a trailblazer in its
efforts to integrate social and digital media into its quarterly earnings
announcement.
Case in point is their most recent third-quarter earnings in which they
blended traditional disclosure with online platforms. Outlined below is an
anatomy of this well organized “IR 2.0” disclosure exercise
Phase 1: Pre-earnings
A day before the actual earnings
announcement, HP posted on its
corporate blog a “guide” to how the
company would be disclosing its results
As you can see, they provide direct
hyperlinks to HP’s official IR website,
the corporate blog, newsroom,
Facebook page, twitter, etc.
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16. Case Study: HP Third-Quarter Earnings
And here’s how it all played out on the actual earnings day. In additional to fulfilling its
traditional reporting requirements (PR wire services, HP news site, etc.), in parallel it also
unleashed its results and story across the spectrum of digital and social media channels
Phase 2: Earnings Day
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17. You can learn more about Ketchum’s Digital Practice and our ideas about digital
communications channels in the Investor Relations sector by visiting:
http://blog.ketchum.com
Ketchum Contacts:
•Cynthia Chan, Account Director & APAC Social Media Strategist: cynthia.chan@knprhk.com
•Josh Nova, VP & Co-Director Corporate Practice: josh.nova@knprhk.com
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