Social Network for IR by jennyyingdi

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									                                                        Sydney Zhang, CFA
                                                        Director of Investor Relations
                                                        China Unicom (HK) Limited

Exploring Social Media for IR Advantage           100    200       50




                                                        IRmagazine
                                                        IR Magazine




    szhang88 #1: Social Media Trends



   szhang88 #2: Why Social Media for IR


   szhang88 #3: Challenges and Status



   szhang88 #4: Recommendations & Case Studies
    December 9, 2010 @ IR Magazine Awards in HK
Social Media
Explosion of Communications Channels

•   Social media - an interactive
    form of communication where
    you are able to be the
    broadcaster as well as the
    receiver of information

•   58% of online users globally
    have created a social network
    profile (Universal McCann Social Media Tracker and
    Facebook)


•   72% of internet users are part of
    at least one social network (~940
    million users worldwide)

•   Web users spend on average
    five and half hours every month
    on social networking sites – has
    doubled in one year

                                                         Graph source: Ogilvy
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Popular Social Networks



 500+ million users          Microblogging             Microblogging              Professional
                                                       (Chinese)                  Networking
 130 friends/user            175m registered users     50m registered users       >85m members
 90 pieces of content        95m tweets/day            25m messages/day           +1 new user / second
 /user/m                     (as of mid Sept2010)      (as of Oct2010)            (as of Nov2010)




Social News                  Financial Microblogging   Stock market opinion      Financial Microblogging
Discover&Share Contents      (Chinese, A-shares)       and analysis with         (US Stocks, trader
                                                       social media features     focused)
15m Monthly US               Launched in early 2010    (US Stocks,
unique visits                                          Professional investors)
                                                                                 50K registered users
                                                       50K registered users


Sources: Company web sites

                                                                                                           3
The News Spreading Fast on Social Networks

Traditional news media
outlets have all adopted
social media sharing
capabilities on their web
sites




                                             4
Why Social Media for IR?
A company’s reputation is on the line
•   Business executives surveyed by Weber Shandwick and KRC research estimated
    that a company’s reputation contributes to 63% of its stock valuation

Increasing numbers of shareholders, stakeholders and investors using
social media to understand more about your company
•   85% of professional financial service providers under 50 are using social media
•   89% of journalists using blogs, 65% social networking, 52% micro-blogging (Twitter)
•   47% of institutional investors read blogs for investment research and ideas (A Brunswick
    Group 2009 study of digital media use)

•   Surveyed by the Australian Investors Relations Association
     –   20% of institutional investors and sell-side analysts said that information accessed through
         social media channels had influenced their investor decisions
     –   15% of the surveyed said they can access information through social medial channels that
         they cannot get elsewhere




                                                                                                        5
Social Media for IR - Challenges and Status

Challenges                                Status
•   Wide variety of channels              BNY Mellon IRO Survey 2010:
    and influencers                       • 35% are interested and 9% is
                                            already using services like Twitter
•   Increasingly difficult to               for IR communication
    control
                                              – Twitter and corporate blogs were the
•   Legal and regulatory                        most commonly used social media a

    requirements                          • 57% of IR departments said they
                                            have no plans to use social media
•   Internal guideline
                                              – 20% due to company policy
•   How to measure success                    – 37% due to IR decision



A 2010 study from the Ross School of Business at the University of Michigan
found that companies who used Twitter to distribute financial news got lower
bid-ask spreads and greater depths. The study also found the biggest impact
was for lower visibility firms that didn’t get much traditional media coverage
                                                                                       6
    Recommendations
            Set Goals                         To actively tell a story of your company
                                              to new audience
                                   Key influencers use social media for
Resources                          outreach and info gathering

                      Balance online dominance of a competitor                             Evaluate and
                                                                                           try new things
   High     Flag issues for Corporate Communications
            to address                                          Contribute to the          • Evaluate results from
                                                                conversation                 social media efforts
                                                                                           • Try emerging new
                                                                • Open corporate             technologies
                                                                  accounts at major
                                      Monitor & Listen            social network sites
                                                                                           • E.g. blog site,
            Make your IR                                                                     multimedia,
                                                                • Engage key
            web site social           • Tune into the             stakeholders with
                                        conversation around
            media friendly              the globe 24x7
                                                                  great content
                                                                • Ensure within policy &
                                      • Identify influencers      compliance
             • Tools: RSS, Blog,        and stakeholders
               Add Share Button,      • Tools: Google Alerts,
               XBRL, mobile             Twitter search,
               version, webcast,        subscriber to RSS
               etc.


    Low
                Understand                            Participate                           Lead             IR Goals
                                                                                                                        7
Example: Monitoring & Listening




                                  8
 Case Studies – HP 3Q10 Earning Release

• HP used an array of social
  media to report its 3Q10
  earnings results.
• These activities are conducted
  in parallel to its traditional
  disclosure venues, such as a
  PR wire service, its IR website,
  company news room, SEC
  filings and the quarterly
  earnings call
• Information is posted to the
  social media accounts after it is
  has already been made public in
  the traditional venues
• Well coordinated and timed
  despite complexity




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Resources

Respective social networking websites

The Executive’s Guide to Social Networks for Business
http://www.slideshare.net/360digitalinfluence/ogilvy-socialnetworks4biz

Investor Relations 2.0 by Ketchum Digital Practice
Http://blog.ketchum.com

IR Web Report by Dominic Jones
http://irwebreport.com/

Investor Relations – Taking on social media white paper
http://blog.dna13.com/bid/49454/Investor-Relations-Taking-on-Social-Media



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