Investor Relations & Web 2.0

 

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.

4 replies
  1. Cheryl
    Cheryl says:

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

  2. Krupo
    Krupo says:

    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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  1. […] 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 […]

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