08
Jun

Integrating Social Media into IR

Posted by: AmberRoberts in: Financial Services -

  • 85% of financial services professionals under age 50 use social media (source: Ledermark)
  • 47% of institutional investors read financial blogs for investing and research ideas

So why are some companies still hesitant to utilize social media as part of their IR program?   Investor relations professionals broached this very topic at the NIRI conference this week.

Here is a quick chart from the conference outlining the top reasons IR departments give for avoiding use of SM, and the counter argument:

Objections

Solution

Legal barriers Legal can pre-approve content
Stock is institutionally held Improve response time and reach new retail
Time constraints Scale; amplify conversations
Too small of department Leverage content from marketing, PR, sales and HR
Unclear rules (Reg FD) A good reason to partner with legal and make a new friend
No proven ROI Your time is priceless! And SM can be measured in some ways
Unsure where to begin Initiate with a pilot project

 

Coincidentally, just a few days ago Forrester released its report affirming that financial services in particular should be using social media: http://www.nlcsocialmedia.com/forresters-reports-financial-services-marketers-should-use-social-media

The bottom line: no more excuses for not leveraging the impact and reach of social media on your investors and other audiences. We can’t blame SEC rules either. If you aren’t using social media, statistics show you are missing out on an important and direct communication channel to reach very important audiences.

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