To say the least, investor relations practitioners have not embraced social media, much to the chagrin of most social media ninjas. There are many reasons – and these objections are unique for investor relations departments… predominantly due to the legal nature and predatory audience of their communications.
- Insufficient quantitative ROI
- Lack of staff bandwidth for traditional social media interactions
- Extension of the zero “chat / stock bulletin board” interaction policy
- Concern over inconsistent content flow
- Continued discomfort regarding selective disclosure
Recent research has also shown that social media is taking a back seat for financial communications. Furthermore, Canada’s regulatory body, unlike the USA’s SEC, declared social media an inappropriate media for disclosure.
So, should an IR department ignore social media? No. Anyone in a communications role certainly understands INSTINCTIVELY that a media that has millions of people opted-in has potential. It may just be that from the IR perspective, the potential is still too undefined in comparison to marketing, customer service and crisis communications.
It is from the above hypothesis (…plus conversations with IROs), we counsel IR groups on the “tactical strategy” in this white paper. Download the white paper here.
Bottomline: social media is a bona fide newsfeed for millions of people, but for now, IR simply needs to get their news into the stream -with their cashtag- without creating any trace of RegFD risk nor adding any extra work. Risk and hands-free.
One part of shareholder communications is merely delivering content. What will having your news in the social stream bring to your company?
- It will assure your financial news is reaching an investor audience in the manner they prefer
- It will drive an audience to your investor relations website where those interested parties will view more about your company – even if it is a peripheral view.
- It will position your company as a brand that understands and embraces transparency and access in all communications media
- It will get the social media gurus to leave you alone
I apologize if we vendors have made social media seem too complicated. It’s not really. Especially for our investor relations website clients.
Have a great day.