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Investor relations and corporate communications need unified standard operating procedures to connect and engage with present stakeholders.
A study by business advisory firm FTI Consulting has assessed the social media and digital practices of investors and finance and business media professionals.
Findings of the Digital Engagement Study highlight the necessity for investor relations and corporate communications to work with an integrated approach, and the need to leverage online influencers to boost corporate messages through social channels.
The findings emphasize the divide between the way investors and media choose to use up information and the way companies distribute the information.
Even though 50 percent of investors and 88 percent of media find value in receiving breaking news through social media, only 13 percent of investors and 41 percent of media can find important corporate information on the Internet.
FTI Consulting senior executive Bob Knott says the rapid increase in digital communications has led to a “surround-sound ecosystem,” and that investor relations and corporate communications functions have to operate in lockstep to convey important business information to target audiences.
The study finds that 89 percent of investors and 92 percent of media turn to “corporate-owned platforms” such as investor relations sites and newsrooms to assess a certain company.
About 16 percent of investors and 50 percent of media find equal value in webcasts and asking direct questions to a company through social media.
Findings of the study highlight the significance of “content vehicles,” such as press releases, videos, and infographics, to boost corporate information.
Seventy-eight percent of survey respondents find “rich content” in media, such as infographics, videos, and blog posts, to be valuable.
Even though both investors and media think “traditional formats,” such as press releases and SEC filings, to still be of value, investors find these “traditional formats” to be 18 percent more credible than “rich content” vehicles, compared to the 10 percent of media.
As a result, organizations have to be attentive on how they implement traditional and digital communications through an integrated corporate approach and resonate with stakeholders.
In general, investors still consider the social content of institutional investors, financial and business media, sell-side analysts, proxy advisers, and other third-party financial influencers to be twice as valuable as companies’ social content.
The study adds that about 14 percent of investors directly access or view company-generated content through social media, and 40 percent of the same investors look for social content from third-party, financial influencers.
Respondents of the online survey conducted from October 3 to 24 were 201 global institutional investors and 41 global, financial and business media professionals.
Featured image: BTO – Buy Tourism Online / Flickr
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