Sprouting up from the post “StockTwits drives 3X the traffic than Twitter for shareholder communications,” have been client discussions regarding that, compared to all other communications departments within a corporation, the Investor Relations department has it easy in regard to social media.
Three factors contribute:
- The $cashtag
- The audiences’ expectation
The $cashtag is king
At last count, there are eleventy kabillon people in Tweet-based social media, all sharing obscene amounts of information. The only way to find value from this data is via filters… and the $cashtag ( a dollar sign and ticker symbol ) is the smartest – and more importantly – the most specific filter in all of social media. If you consider social media as one huge database… your $cashtag only ever refers to your company. Nothing else is your $cashtag. It identifies your ccompanyexactly like your ticker symbol. #Hastags #are #too #random #these #days.
Additionally, the $cashtag is usually only found within capital markets-based content, simplifying monitoring. No other department within your company can type in a mere four or five characters to search and review relevant content. No other department can push news instantly into investor-targeted databases, reaching both buyer and seller. More on this in the StockTwits section.
The audience’s expectation is low.
Relax. Investors don’t expect Investors Relations to suddenly become chatty because of social media. They know you have strict regulations. However, social media-minded investors do have a technology expectation: social media, like other (legacy) news distribution channels, will deliver news. Put your news releases into the stream. Nothing more. Your news’ headline, a link to the news release and your $cashtag. Done. At that point, the $cashtag fueled databases and your investors will engage with one another.
Also, your IR department should stop expecting ROI. The “investment” you expend looking for a Return On Investment will be more than the energy spent pushing your news into social media. Besides, what is your investment? Sending a tweet – which can be automated.
This whitepaper download offers a detailed process.
StockTwits is the purest social media network on the planet
Investor Relations Officers don’t realize how lucky they are. StockTwits, by design, is the last unspoiled capital markets social media network.
Objectively, in addition to having a higher apples-to-apples 3x volume of activity compared to Twitter, the network:
- Is only comprised of members who are interested in capital markets
- Is proactively monitored to prevent pump-and-dump activity and faux accounts
- Does not allow discussions of penny stocks or pinks – their $cashtags are not “activated” in the network – which is focused almost exclusively on NYSE and NASDAQ traded equities
- Feeds into professional and public capital markets research portals
Subjectively, if you review the StockTwits stream, you’ll note that most of the discussion are what an investor is doing now – at that moment. They are not blogging an opinion or analysis, which has negatively permeated many of the long-form blog-based social media channels. The physical limitations of a 140 character micro-blog prevents StockTwits from becoming another ‘stock newsletter” content publisher.
One important disclaimer. Content does drive shareholder communications, which drives shareholder confidence… which drives shareholder value. The $cashtag is king in social media as it drives investors to your content.
Have a great day.