how to make social media work for investor relations - january 31, 2012
DESCRIPTION
Darrell Heaps, co-founder and CEO of Q4 Web Systems (Q4), leads a session aiming to equip IRO's with the knowledge and tools to start tackling these tough questions. Social media can be a powerful tool — make sure it is one working FOR you and not against you.TRANSCRIPT
How to Make Social Media Work for You
Presented by: Darrell Heaps Co-Founder & CEO
EVERYBODY IS USING SOCIAL MEDIA…BUT ARE INVESTORS?
49% of institutional investors read financial blogs. 33% at least weekly Rivel Research 2011
27% pro investors use YouTube. 9% at least weekly Rivel Research 2011
3 out of 5 financial bloggers use Twitter as a primary news source Financial Media Conference, NYC, Feb 2011
57% Financial advisors report positive ROI on using Social Media LinkedFA 2012
5M investors reading Seeking Alpha blogs
500k traders & investors using StockTwits.com and blog network
45M investors visiting Yahoo!Finance per month
1.6M Facebook users have investing as part of their profile
The New Informa.on Food Chain
Institutional Investors
National Media
Major Online News Hubs
Financial Bloggers
Individual Social Media Posts
Financial Times
Forbes, WSJ
Seeking Alpha & ST Network
Twitter StockTwits
Traditional Investors
Social Media Data Powering Hedge Funds
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ARE INVESTOR RELATIONS PROS USING IT?
Twitter Facebook SlideShare YouTube Blogs 2010 65.00% 37.00% 11.00% 29.00% 10.00% 2011 68.00% 46.00% 45.00% 35.00% 19.00%
0.00%
10.00%
20.00%
30.00%
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60.00%
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80.00% U
sing
Soc
ial M
edia
for I
R
362 companies in 2010, expanded to 617 in 2011 Q4 Whitepaper Research
Social Media IR Adoption 2010 - 2011
2010
2011
WHAT IS THE ROI OF SOCIAL MEDIA FOR IR?
What is the ROI of using social media for IR?
1. Increase market awareness
2. Help Investors “Get it”
3. Eliminate low-value tasks 4. Improve liquidity
WHAT ABOUT THE RISKS THOUGH??
Risks of Social Media for IR
1. Reg. FD 2. Employees
3. Misalignment 4. Being Reactive
HOW TO MAKE SOCIAL MEDIA WORK FOR IR.
Website
Social Media for Investor Relations
Corporate IR Website
Social Networks Distribute & Engage
Social Media Publish & Integrate
Publish a wide range of content
Video with CEO or division heads, product launches, operation rollouts
Timeliness and quality of information trump video production quality.
Photos of events and operations
Investor presentations are perfect for SlideShare
Analyst days & product launches
How to:
5. Other Events (Analyst day, non-deal roadshows, operations)
4. Live Earnings (prepare tweets with legal)
3. In the News & Other Updates (videos, blogs, media)
2. Basic Content (PR, Events, Slides, Filings)
1. Good IR Website (Tell your story & integrate SM)
En
ga
ge
me
nt
EXAMPLES TWITTER
Quarterly Reporting: Live-Tweeting
Q4 Whitepaper Research 2011
Live-Tweeting with StockTwits disclaimer
Industry-related News from Financial Blogs
Q4 Whitepaper Research 2011
Partnerships/Acquisitions
Q4 Whitepaper Research 2011
Announcing new channels
Q4 Whitepaper Research 2011
Large Cap TwiGer for IR Example: $DELL
Reliable source of all investor updates
Mix of content from across Dell sources
Sharing & RTing posts, video, slides, pics
Interesting and useful to investors
Live tweeting earnings and analyst days
Expanded Reach
“IROs spend a lot of their time talking about their company on the phone with securities analysts and portfolio managers.
Establishing this one-to-many medium made it a much more efficient way for us to get that information out there to the investor and analyst community.
It actually enhanced the conversations that we were having on a follow-up basis because we knew that we had established a base level of understanding about a particular topic.”
Rob Williams, VP IR at Dell March 23, 2011
Social Media Distribution
Social distribution can expand reach of your message by 6-10x
Financial web distribution reaches over 40M investors each month
Corporate IR Website
How to make sure market gets your strategy
Treat the web as a real-time perception study (aka: listen!) Is the market echoing back your key messages and strategy? Do they “get it”? If not, how severe is the disconnect? Create media assets (Video, Slides, Post, Etc.) Publish to relevant social media service Distribute through social networks & financial web Add additional tweets for more context if need Integrate everything into your website Example: www.teekay.com
Corporate website social integration
Twitter content integrated directly into news tabs. Updates in real-time.
Flickr, YouTube, SlideShare content seamlessly integrated. Automatically updates as new content is published.
Use ques.ons to reduce your workload
If questions come from investors, respond in a timely fashion Point to information on your website If not comfortable answering on the fly set a Q&A time when
you’ll be available to respond Use your FAQ section on website to add questions as they
come up Direct investors to your active FAQs page on your site Repetitive questions will go down A LOT.
HOW TO MEASURE?
Web Monitoring and Tracking
Start with free: Google Alerts Website Analytics Tweetdeck & bit.ly
Upgrade for analytics on social distribution and engagement
Financial social media monitoring
DISCUSSION
More on Q4: www.q4websystems.com
Thought leadership: www.q4blog.com
Contact: Darrell Heaps 1-877-426-7829 ext. 222 [email protected] twitter.com/darrellheaps