The Numbers
Social media is now mainstream
72% of internet users are part of at least one social network—translates into 940 million users worldwide
source: http://blog.insites.be/?p=1704
85% of financial services professionals under 50 are using social media
86% of those under 50 agree that social networking will be an important business development tool within 5 years. 0% claimed that social media isn't worth their time
source: http://www.ledermark.com/news.php
47% of institutional investors read financial blogs for investment research and ideas
20% have used blog research to execute a recommendation or investment decision. 63% of US pro investors say blogs and social networks will play an increasingly important role in investment decisions in the future
source: Brunswick Group study of 500 buy-side and sell-side Sept 2009 (http://www.slideshare.net/darrell_heaps/brunswick-group-survey-findings-on-new-media-usage-by-the-investment-community)
89% of Journalists using blogs, 65% social networking, 52% microblogs (Twitter)
278 business Journalists on Twitter listed at muckrack.com
15 Financial Times / 28 Business Week / 41 Forbes / 66 Wall Street Journal / 108 New York Times
source: http://us.cision.com/news_room/press_releases/2010-1-20_gwu_survey.asp
47% of retail investors look to the financial websites and blogs for investment advice
Investors aged 40 and older rely on financial websites and blogs (47%) and financial publications (41%) more than planners or advisors (39%), brokers (36%) and family (19%)
source: http://content.sharebuilder.com/mgdcon/core/AboutUs/surveyresults/Ahite_Paper.pdf (?) http://content.sharebuilder.com/mgdcon/core/AboutUs/survey_results/White_Paper.pdf
79% of Fortune 500 are using at least one of the most popular social media platforms: Twitter, Facebook, YouTube or corporate blog
65% of the largest 100 international companies have active accounts on Twitter, 54% have a Facebook fan page, 50% have a YouTube channel, and 33% have corporate blogs
source: http://www.burson-marsteller.com/innovation_and_insights/blogs_and_podcasts/BM_Blog/Lists/Posts/Post.aspx?ID=160
The Risks
Only 20% of companies globally have a social media policy
Establishing clear policies for social media is requirement for every public company. All employees must understand acceptable use. Restricting access doesn't work—55% of all social media usage is mobile. Checking Facebook is the new smoke break.
source: http://www.emarketer.com/Article.aspx?R=1007493
Investors are consuming all of your content, whether published by IR or not.
it's important to display a united front to the market. What does your blog or Facebook say about you to an investor? What about LinkedIn? You need to acknowledge that investors are searching the web looking for your company (or will be as investor awareness increases)—what are they finding?
Not listening to the web is the biggest risk for all companies.
Monitoring for your company, executives, along with tracking what your competitors are saying is a key element to staying ahead of rumours, misinformation and crisis.
-------------
Using social media and your voice of authority is an important method to build trust with stakeholders.
Investors and shareholders are influenced by journalists, bloggers and activists. Using the web and social media allows you to maintain a corporate voice in the market and build trust among stakeholders.
