• Investor Relations & Web 2.0

    By • Aug 21st, 2009 • Category: Latest, Your Career

     

    Many companies are using Web 2.0 tools to aid in corporate communications and public relations. How many companies are using these tools for investor relations? In order to determine this, I looked at the top 100 Fortune companies’ investor relations Web sites (the full results of which are linked below.)

    The primary methods of communications are e-mail alerts and webcasts, with interactive reports and RSS feeds close behind.

    While very few companies are delving into social media for IR, some of the highlights are:

    IR Blogs: General MotorsBoeingDellCisco Systems

    IR Twitter: General Motors and Cisco Systems are the only ones who directly advertise being on Twitter on their IR Web sites, although Chevron, Dell, Johnson & Johnson, United Parcel Service do engage in IR on Twitter

    IR Facebook: General Motors, Cisco Systems

    IR Mobile Investor: Johnson & Johnson, Intel, Cisco Systems

    Some basic benefits and challenges of each method of communication are as follows:

    Interactive Reports:

    Benefits

    - Allows investors to easily navigate the parts of the report that are of the most interest to them

    - More interesting to read

    Challenges

    - More costly than the traditional pdf format

    - Not personalized

    E-mail Alerts

    Benefits

    - Easily disseminates information to keep investors updated

    - Inexpensive to set up

    Challenges

    - Not personalized

    - Must ensure database is constantly up to date with correct e-mail addresses to be effective

    Webcasts

    Benefits

    - Draws on visual

    - Puts a face/voice to the organization

    - Information can be delivered in a personalized manner

    RSS Feeds

    Benefits

    - Draws on visual

    - Puts a face/voice to the organization

    - Information can be delivered in a personalized manner

    Podcasts

    Benefits

    - Draws on visual

    - Puts a face/voice to the organization

    - Information can be delivered in a personalized manner

    Blogs

    Benefits

    - Good method of two way communication

    - Puts a face to the organization/a more personalized experience

    Challenges

    - Must have the time to ensure the blog is properly updated

    - Regulations current and future – must ensure compliance both current and in the future

    Twitter

    Benefits

    - Good method of two way communication

    - Good way to reach potential investors

    Challenges

    - Must have the time to ensure the blog is properly updated

    - Regulations current and future – must ensure compliance both current and in the future

    - Insider trading worries

    - Need to make sure you are reaching the proper audience – investors may not be on twitter

    Facebook

    Benefits

    - Reaches a younger audience

    Challenges

    - Need to make sure you are reaching the proper audience – investors may not be on Facebook

    LinkedIn

    Benefits

    - More business oriented form of social media

    - Underused method currently

    - Allows for discussions among relevant groups

    Sharelinks

    Benefits

    - Allows people on the Web site to easily share information

    Chat

    Benefits

    - Good two way communication method

    - Puts a face on the organization and allows for questions/problems to be easily seen

    Challenges

    - Takes a lot of time

    - Need to make sure you have the correct spokesperson

    Flickr

    Benefits

    - Good for organizations that have tangible products to share

    Mobile Investor

    Benefits

    - Good for allowing investors to easily check their investments

    YouTube

    Benefits

    - Good for companies that have messages to send with the potential to be spread virally

    The full results of my study which Web 2.0 tools are being used by the Fortune 100 companies for IR purposes can be found by clicking here. (This is a .docx file)

    The results are based on the tools that can be found directly from visiting the IR Web sites of the companies. While some companies may be using other methods, in order to be included in my study, the tool had to be promoted on the IR Web site, in a determinable manner, as a way that investors could find information about the company.

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    4 Responses »

    1. […] How are big corporations using web 2.0?  (re:TheAuditors) […]

    2. Hi Karen
      Do allow us to SHARE the articles on FB, etc .. I think you’ll need to include a little widget …

    3. […] McKenna, of re: The Auditors, put together a great study on how the Fortune 100 are using Web 2.0 for investor relations. There are some. But for the most part, they are not using web […]

    4. I wouldn’t hound individual sites to add widgets, just add the fcbk “boomarklet” to your toolbar (it’s a bookmark you click to automatically shrea the page you’re on) – done!

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