Within the past two months, there has been a torrent of opinions regarding investor relations and social media, much of it ignited from the Wells Notice sent to Netflix in December and Zipcar’s issuing an 8-k after their CEO’s tweet.
As I read through the torrent of pundits, many of them inflammatory towards the SEC, one over-arching point stood out to me: “oh for Pete’s sake, are we STILL talking about this topic.”
There are three reasons investor relations and social media remain odd bedfellows.
- Risk of selective disclosure
- Lack of unique content
- No content marketing methodologies
Risk of selective disclosure
By their actions, investor relations officers have told our industry, in no uncertain terms, that social media will not work for them. The risk of material disclosure real – and let’s not accuse the SEC of being out-of-date on this topic. The SEC’s job is to protect investors, and from their desks it’s a lot wiser NOT to open the Pandora’s Box of social media to further release the kraken of fraudulent promotional practices already pervasive throughout social media.
Lack of unique content
Investor relations has a great depth of material and important content, but per RegFD, it is widely repurposed and repackaged.
The strength of social media is its real-time delivery of unique content. Unlike marketing (ahem), as a role within their corporation, Investors relations itself does not create the type of content conducive to social media. From a tactical communications perspective, together, the words “unique” and “real-time” do not favor RegFD. Remember, predatory investors are like paparazzi waiting for a wardrobe malfunction.
No content marketing methodologies
For many marketing departments, the term “social media” has taken a back seat to “content marketing” and that’s the direction we are guiding our investor relations clients.
This may seem like a lipstick/pig vocabulary exercise, but it has a purpose: it brings clarity to the communication goal. Tight measurement of outbound communications efforts for ROI. In other words, proving that “social media” has tangible results BEFORE the customers’ final purchasing (investing) decision. As stated in our new Shareholder Confidence 365 Study, the crux of inbound (ROI) strategy is your investor relations website. Download the report here.
PR Newswire is a communications company and a firm believer in social media / content marketing. We HIGHLY RECOMMEND that IR departments are listening to the social media stream: following their cashtag, etc.
This blog discussion is about actively participating and understanding the value in balance to the work and risk. Our new investor relations website solution, IR Room, utilizes inbound content marketing technologies to clearly demonstrate the ROI of outbound investor relations communications and help target new communications.
What the heck! With the upcoming frappe’ of Thomson and NASDAQ IR websites business, now is a very appropriate time to re-evaluate your investor relations website. To that, our new report has interesting insights on how your investors consume your investor relations content.
Have a great day.