Just over half of institutional investors are using social media to gather intelligence on companies and industries as part of their research, according to a survey released Monday by NIRI and research firm Corbin Perception.
While 52% of 87 buy-side investors surveyed say they monitor social media – not much change from 56% in a 2010 survey – they are tuning into social channels more frequently. Some 39% monitor social media on a daily basis, up from 12% in 2010. Others check periodically or in response to someone calling a specific post to their attention.
The investors say overwhelmingly (92%) that information from social media isn’t entirely reliable – it’s intelligence that helps fill in the “bigger picture.” But most of those who monitor social media say their investment decisions have been influenced at some point by what they see.
The top three categories of social media watched by the buy side:
One-fourth of the buy-side people surveyed don’t use social media at all for work, and 38% can’t access social media sites on work computers because of company policies against it.
The bottom line for IR, according to NIRI and Corbin:
As social media continues to evolve, IR professionals must closely monitor company-specific social media content. That said, when it comes to getting their company story our, one-on-one meetings, the investor presentation, analyst days and conference calls remain the leading sources of reliable information, according to the buy side.
Corbin provides a copy of the survey report on its website.
So where are you in monitoring and/or engaging with social media?