Social Network for IR by jennyyingdi


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

Exploring Social Media for IR Advantage           100    200       50

                                                        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

•   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
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

The News Spreading Fast on Social Networks

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

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

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
                                              – 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
            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

                Understand                            Participate                           Lead             IR Goals
Example: Monitoring & Listening

 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


Respective social networking websites

The Executive’s Guide to Social Networks for Business

Investor Relations 2.0 by Ketchum Digital Practice

IR Web Report by Dominic Jones

Investor Relations – Taking on social media white paper


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