Last week, the shareholder communications sphere experienced the hat trick of “IR and social media” reports coming from three independent studies. No surprise to anyone in the niche – all reports were aligned.
The studies, in published order:
- Our client study: read here
- The National Investor Relations Institute (NIRI) member study: read here (for members)
- Rivel Research Group’s buy-side study: read here
- The majority of corporate investor relations (IR) professionals (73 percent) report they do not use social media for their work. These results have been consistent since NIRI first began to track social media for IR use in 2010.
- The primary reason IR professionals do not use social media is due to lack of interest in the medium by the investment community.
- By constituency, respondents report that industry analysts, financial media, and retail investors are the most actively engaged with their IR departments through social media channels.
- Perceived investor interest across all constituency types appears to have waned since 2013.
- For now, investors will simply continue questioning the credibility of investment information gathered via social media and bide their time until its use is more commonplace and they can better tell what to trust and what not to trust.
From Vintage & PR Newswire:
- Six percent more IROs are tweeting/StockTwitting. The most dramatic change, is the determination of “no, we will not be tweeting.” 56% report “no,” up from 19% in 2013. IR understands the media now.
Should IROs ignore social media?
No. that’s not the answer at all. Social media is an important communications network, with pros and cons like any network. Our shareholder communications advice has always stated use social media to get your facts and financial brand into the stream for others to share. Spend the appropriate amount of energy in balance with the ROI. No more, no less.
This blog post sums it up well.