Posts Tagged ‘Twitter’

Twitter IR could be interesting

November 8, 2013

TWTR NYSEA few years ago an investor relations colleague told me Twitter was “the end of the world as we know it.” Bothered by the cacophony of 140-character mini-messages, this Old Schooler was offended by the damage that tweeting could inflict on our language. To me, it looked interesting rather than scary.

And now Twitter, Inc., after a hugely successful IPO on Thursday that raised roughly $2 billion (which The New York Times DealBook blog sniffed was “more modest” than what the company might have gotten if pricing had been higher), is going to be even more interesting for IR people to watch.

The social media platform has begun life as a public company pledging to talk to investors through – well, social media. To be sure, there is a Twitter investor relations webpage, though I found the corporate site only after some searching. The IR page itself is worth checking out, a bit unconventional with its news from the company blog of mostly non-investor related happenings, a page of financial releases (“Coming soon” … like the earnings, a cynic would say) and, of course, a feed from @twitter.

But this will be worth following. In rolling out Twitter’s stock offering, management pledged to practice its own preaching – using online postings and social media (its own) to get the word out. From the TWTR prospectus:

Channels for Disclosure of Information

Investors, the media and others should note that, following the completion of this offering, we intend to announce material information to the public through filings with the Securities and Exchange Commission, or the SEC, our corporate blog at blog.twitter.com, the investor relations page on our website, press releases, public conference calls and webcasts. We also intend to announce information regarding us and our business, operating results, financial condition and other matters through Tweets on the following Twitter accounts: @dickc, @twitter and @twitterIR.

The information that is tweeted by the foregoing Twitter accounts could be deemed to be material information. As such, we encourage investors, the media and others to follow the Twitter accounts listed above and to review the information tweeted by such accounts.

Any updates to the list of Twitter accounts through which we will announce information will be posted on the investor relations page on our website.

That all seems to be in line with the SEC’s guidance on IR use of social media and company websites for disclosure (speaking as a non-lawyer). Twitter has the advantage of starting afresh – investors aren’t accustomed to seeing its news in one particular place or format.

Twitter fin releases

The end of the world? Hardly – but IROs will be watching with interest.

© 2013 Johnson Strategic Communications Inc.

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And now, Twitter as a public company

November 7, 2013

TWTR tweet

Buy side half-interested in social media

June 11, 2013

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:

On down the line in buy-side usage are company blogs, chat boards, Motley Fool, Twitter and so on. Facebook isn’t in the top 10.

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?

© 2013 Johnson Strategic Communications Inc.

Should your CEO do social media?

May 10, 2010

George Colony, tech guru and chief executive of Forrester Research, packs an interview on Mashable with common-sense advice on how a corporate CEO should relate to social media. (Mashable is a news and opinion site devoted to Web 2.0.) The Forrester interview is a good read for investor relations staff and counselors.

Three factors are working against CEOs embracing social media, Colony says:

  • Age – the typical CEO grew up back when people talked
  • Regulatory constraints – the risks remain fuzzy around Reg FD and new media networks like Twitter (ignore Mashable’s mistake in transcribing SEC as FCC in the text)
  • Time – or the lack of it.

The Forrester chief paints this picture of what keeps most CEOs from engaging:

If you go to a CEO and say — and this is sort of conventional wisdom around being social — “We want you to make between five and six 140-character statements a day” — that’s 30 a week. “Then we want you to make one large statement per week — about four or five paragraphs.” And most CEOs would say, “There’s absolutely no way I could do that.”

There are two problems here: one is time. Calculate the time behind this and it’s about five or six hours — that’s a lot of time for a CEO. The second is that model — which has become almost an accepted model if you want to build followership — that model is unsustainable if you want to sustain quality. In other words: There’s not enough to say. There’s not enough wisdom in the world for one person to be wise over all those statements to fall over a year. That’s 1,500 short statements a year and 50 large statements a year.

Colony favors what he calls “social lite” – a focus on quality rather than quantity. A CEO might aim to post significant messages 6 to 8 times a year on a blog, and perhaps comment every 2 weeks or once a month on a short-message platform like Twitter. So when the CEO does speak, it’s a more notable event.

The Forrester chief also says CEO posts should not be written by PR people – but by the CEO. That’s the point of social media, after all – to engage personally in the conversation. To fake it isn’t authentic, to use another social media buzzword. And a CEO doesn’t get the benefit of listening if he or she isn’t even in the room.

My feeling is that public company CEOs wading into social media should get a quick review of posts from other members of the team – say, the CFO, IRO or Legal. The idea is not to scrub the humanity out of the CEO’s words – no “writing by committee” allowed. But we should bring in a second set of eyes to check facts and grammar – just to protect to CEO and the company’s brand in the marketplace.

For most businesses, I favor something more like a company presence in a blog or on Twitter and Facebook – blending voices from marketing and corporate, either funneled through a single person whose job is “telling the story” or coming from several contributors writing on different aspects of the company and its products.

Colony estimates only about 10% of CEOs are ready to do social media now. In the next 10 years, that may grow to 50%. But he urges companies not to rush it:

I would say if you’re interested, explore — but do not force it. If you do not have the proclivity to communicate, to be a little bit honest, a little bit controversial, then I wouldn’t do it. I wouldn’t force it.

That view jibes with where most companies are now on social media – especially firms that are not in the tech business or that have small cap resources. It’s time to listen, explore, develop skills and resources – and “go social” as you are ready.

What’s your feeling on CEOs and social media? (Click comment line below.)

© 2010 Johnson Strategic Communications Inc.

Investors, golf, cancer & social media

May 7, 2010

Two communication folks from American Century Investments, a mutual fund firm with about $60 billion under management, gave a great talk today at the Social Media Club of Kansas City on an online campaign building the company’s brand.

As investor relations and corporate communication people at many companies are exploring social media – dipping our toes in the water – I thought I’d share some lessons from the American Century experience. They’re privately held, but dealing creatively with interactive new media in our highly regulated financial world.

Brent Bowen and Jamie Needham of American Century gave a case study on the American Century Championship celebrity golf tournament at Lake Tahoe – and what the company does to promote its brand through social media from the event.

Of course, the event starts with some advantages. This is golf, with a network TV audience that also can be online. The tourney draws celebrities ranging from Charles Barkley to Ray Romano. They’re playing because the event is a benefit for Lance Armstrong’s LIVESTRONG campaign against cancer. And golf is somehow woven into the DNA of many investors – American Century’s audience.

So it’s a natural. But the American Century team did a nice job with social media approaches that I think would fit for small or large companies – even firms that can’t bring Michael Jordan to their event. A video is available here (uncut, so fast-forward to ~12 minutes to skip Social Media Club housekeeping stuff).

My own interpretations from the American Century experience:

  • An event helps ignite the online conversation. To get people you’re not paying to start posting on Twitter or their Facebook pages, you’re best to tap into their interests with something that’s happening. Could be an earnings announcement, but don’t expect that one to go viral. Social media focus most easily on events that build corporate brand awareness or help launch products. IR is a smaller part of the picture – but should be present.
  • A feel-good cause gives momentum to a social media campaign because people get excited about doing good more than about a company making money. American Century wisely put all the emphasis on LIVESTRONG and helping cancer patients – all except, of course, that the event is called the American Century Championship. People who are online get excited about supporting cancer patients in the battle of their lives. Or about their favorite sport. Or an art show or concert. Or defeating hunger or disease.
  • Listening comes first. American Century started with “no social media presence – no Twitter account, no Facebook account” – Brent says. They began by searching out 20 to 25 key words in the online interactive space. What are people out there saying about us, our cause and our partners? They asked people in the industry what they want to hear – and the answer was, in addition to just investment products, to learn what makes the company tick. Investment people asked for that softer side, in other words.
  • Plan the content. As Brent says, “Content plan, content plan, content plan.” Sure, tweeting looks all spontaneous. When people post to Facebook it’s personal and folksy. YouTube videos capture those wacky moments. But the corporate message comes through because it is planned. Spontaneous stuff comes from being flexible in addition to following the plan.
  • Legal can get comfortable with social media. American Century puts on webinars in which its investment officers help the investing community understand what’s going on in the markets. The communications team decided to “live tweet” a webinar – which means giving a series of 140-character messages summarizing what the speakers say, as they say it. Anyone who follows @AmericanCentury gets the tweets in real time. The “story behind the story” is that a compliance officer sits next to the person doing the live tweeting – it’s real-time compliance review. Hey, IR could do that.

If you’d like more, watch this morning’s video or explore American Century’s golf tournament site. Congrats to this Kansas City company on a cool national event.

© 2010 Johnson Strategic Communications Inc.

Social media old & new

December 22, 2009

Christmas cards are the old social media – of the printing press era. But they say something to us about the new social media – our current interactive networks.

Personally, I love sending and receiving greetings this time of year. It’s a chance to touch old friends and colleagues with a personal wish of peace and well-being. I even like reading Christmas letters of faraway friends for news of their families and work lives.

A Wall Street Journal column on the history of Christmas cards this weekend made me reflect on how far we’ve come since Henry Cole printed up and mailed the first Christmas cards back in 1843. (No, Hallmark didn’t invent seasonal greetings.)

What’s this have to do with investor relations? Consider …

  • Relationships are built by communicating with people, repeatedly, often in different ways, over time. A Christmas card may be one touch. An email note or “retweet” on Twitter another. A phone call or one-on-one even better.
  • Social media are like Christmas cards. To play, you have to commit time and resources. You can’t say we’re going to do interactive media and then not put in the time – it’s like intending to send Christmas cards, but never getting to it.
  • Personal messages, even short ones, speak volumes. Just as the seasonal card is about letting someone know you’re thinking of them, any note or call tells an investor (or in-house colleague, for that matter) that you care.

So now’s the time to start on “social media” for 2010, whether your plan is to tweet your earnings, blog your strategy, engage in online conversations on your industry, upgrade your website, or just touch more people personally in the new year.

Oh, by the way, if you celebrate Christmas – Merry Christmas! If it’s a different holiday, best wishes in this beautiful season and all the best for the new year!

Word of the year: “unfriend”

November 17, 2009

The word of the year for 2009, according to the New Oxford American Dictionary:

unfriend.

This says something about our society and the social media we’re all embracing. Relationships of a certain sort are, well, un-doable. Someone can friend or follow you on Facebook, Twitter or LinkedIn, and either person can exit just as easily. Friending and unfriending can be entirely impersonal.

Now, I won’t say crack any cynical jokes about relationships with investors. My observation for the day is simply that we are all looking for real relationships – in our personal lives, business dealings … and our investor relations jobs.

Social media play a role in supporting all of these relational areas of life. But the simple act of friending or following or connecting isn’t much of a relationship. Talking with each other over time using whatever medium, listening, supporting – dare we say, investing time and effort in each other – makes a relationship.

Let’s be social in our investor relations outreach, but let’s build real relationships.

This space not for sale

October 9, 2009

NoSaleSignThe Federal Trade Commission this week jumped into a controversy that has been swirling in social media circles: “Pay for play” – the practice of companies or PR agencies paying bloggers, Twitterers and other online “influentials” to endorse or mention their products or services.

This FTC action focuses on people selling products – not pitching stocks. But the intervention in the online marketing world has important implications for online promoters of investments, as well. More on the investor relations side in a moment.

What the FTC did was announce new guidelines requiring disclosure if companies pay online chatterers, or give them free products, for endorsements. (FTC announcement here, old media take on it here.) So faking a word-of-mouth or “viral” phenomenon gets a bit harder. FTC explains:

The revised Guides also add new examples to illustrate the long standing principle that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. These examples address what constitutes an endorsement when the message is conveyed by bloggers or other “word-of-mouth” marketers. The revised Guides specify that while decisions will be reached on a case-by-case basis, the post of a blogger who receives cash or in-kind payment to review a product is considered an endorsement. Thus, bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service. … And a paid endorsement – like any other advertisement – is deceptive if it makes false or misleading claims.

For the record, this space is not for sale, regardless of FTC guidance. I have, in fact, received a couple of offers from IR service providers – but getting a paycheck isn’t the reason I’ve chosen to take part in the conversation through IR Café.

My ethic comes from years of working in the Old Journalism of daily newspapers. When I was a young reporter, one of the newsroom characters was a City Hall reporter known for, among other things, refusing to take a donut at the weekly City Council meeting because he never wanted to place his objectivity in doubt. A journalist who accepted freebies from someone he covered would be drawn and quartered, usually in a public flogging through a news story about his termination.

So I got the message: Journalism is about delivering information for the readers’ benefit; advertising is about being paid to deliver messages for advertisers’ benefit. Publishing ads is all well and good. But if you want credibility, the lines should not be blurred – as they increasingly are, both online and in traditional media.

I value credibility more than a buck, which is why I headline a post “This space not for sale.” If our firm tries to sell you something, you’ll know it.

Now, I have mixed feelings about the FTC sticking its nose into what has been a wide-open space on the Internet. Does freedom of speech extend to someone tweeting “Wow U have to try this new digicam from CoolVideo.com, best ever and an awesome Christmas gift, too!!!!!”  I don’t know, that’s marketing … or maybe constitutional law … a question above my pay grade, as the President says.

When it comes to investor relations, I have a clear opinion: Pay for play is not a good idea. Investors are smart enough to see through a paid profile in a publication or website aimed at investors, and it can hurt rather than help the company’s credibility. And people shouldn’t be touting stocks online (or touting the short side) for pay, period. Companies and IR or PR firms should steer completely clear of that practice – regardless of regulation. It’s a matter of integrity and credibility.

Securities laws outlaw market manipulation and misleading information, of course. I’m no expert on the Securities and Exchange Commission, but as interactive media play a growing role in capital markets, it wouldn’t be surprising to see the SEC take direct action to require disclosure of payments to bloggers or other online chatterers – just as analyst reports must disclose the i-banks’ interests in companies covered. It might even help clean up the markets.

What’s your opinion on the integrity – and freedom – of online discussions?

Social media: Be a leader

September 18, 2009

Thinking a little more about investor relations engagement in social media (or hesitancy to engage), I believe IR people should step forward and offer some leadership in strategy and policies for corporate and employee involvement in the interactive Web. This is not to say take over, which IROs don’t have time to do and other departments would resist. But offer input, show thought leadership.

This issue came up today among IROs in a webinar on social media and IR organized by Bulldog Reporter’s IR Alert. I spoke on the panel but thought I would pull some thoughts – and resources – together to offer readers of IR Cafe.

Two compelling reasons for IR to lead internally and help shape the strategy:

The message. I think of IR as one of the keepers of the corporate brand. Who are we, what’s our story, what do we mean as a company, how do we create value in the world? The CEO, of course, is communicator-in-chief. But the IRO should be nearby, helping to clarify and deliver the message.

Yes, I know – the products are where the money comes from, so brand managers and marketing communications people often drive the agenda for media of all sorts, which now include Facebook, Twitter and the like. Most social media efforts spring from marketing, customers service or PR.But consider the audiences.

But communication strategy has to flow from understanding our audiences. We have customers, who may be learning about our products – or talking about them to friends – on networking platforms. We have employees, who may be talking about work and the company on social media sites. And we have investors – the IR audience – who own the company, after all, and increasingly are using social media to learn about it, in addition to the company website and traditional sources.

Go to search.twitter.com, a small but easy window into social media, and look for your company or big products. When I do this, I find a significant amount of chatter is on financial matters – investors trading links and opinions. We need to be sure the corporate story, the value-creation story, is reaching these audiences.

The risks. One role of IR within a company is to play gatekeeper – to be sure no one blabs the material information before the company properly discloses it to broad audiences. The IRO is, among other things, a Regulation FD gatekeeper.

Do we need to say what the risks are in social media? It’s a wild and woolly space. Consider the confidential information an employee might let slip, unthinking: We’re all excited about this new product that starts shipping November 1 … Everyone’s afraid of losing their job, because sales have just been tanking this summer … My division is being combined with this other one … The CEO had a heart attack.

I’m no lawyer, but what I’ve heard from several attorneys – including Ben Orlanski of Manatt, Phelps & Phillips on the webinar today – is that the same securities laws and SEC rules (reg FD!) apply to social media as everywhere else. So IROs should be involved, both in developing policies and in day-to-day activity, to guard against selective disclosure by the company – in Web 2.0 as well as other forums.

The other social media risk IROs talk about is the crisis. What happens when rogue employees post a YouTube video doing gross things with your pizza? Or angry soccer moms start tweeting and Facebooking about your TV commercial? Social media platforms spread information – true or false – rapidly and uncontrollably. That pizza video reached 1 million-plus viewers in three days, and investors were in the audience – the stock price dropped 13% (it has recovered). Crisis management is a topic unto itself, but the risk is reason to be prepared.

How to lead. As with so many areas of corporate policy and strategy, the influence of an IRO or outside agency is mostly informal – getting up to speed, reaching out internally to build support, be an active participant in a team. In the case of social media, that means working with Legal, Finance, Marketing, PR, Customer Service.

To me, decisions of where and how to engage in social media – blogs, Twitter, Facebook, there are hundreds of channels and tactics – are questions of strategy that each company must answer for itself. And no two approaches will be identical. But the necessity of thinking through the policy issues applies to every company.

Most public companies have disclosure policies, a giant “business conduct policy” and/or an array of policies covering various areas of employee conduct. Social media are relatively new, but already huge. So companies really need to update their policies to cover involvement of the company and employees in Web 2.0.

I’ve scanned some social media policies of big companies. The ones you can readily find on the Web are from tech companies, who have embraced the culture of sharing their information (even internal policies) online. Take a look at these:

I like Sun’s best among these, because of its plain English and subheads that guide the employee through it. Some business conduct policies are too lawyerly for most employees to get the message (or may even spawn little rebellions).

Charlene Li, co-author of Groundswell, has been preaching the “We need a policy” message for a long time. In a post from way back in 2004, she offers a simple example of a blogging policy, with links to more resources. So if you don’t have a policy that includes up-to-date thinking on social media, you need to catch up.

Communicating with the capital market has always been about using different channels to reach various segments of the investor audience, and IR 2.0 is here.

(Some previous posts and resources on this blog: IR 2.0 – A Menu linking to resources by topic, IR Website Checklist of what should be there, Tiptoeing into 2.0 on trends in corporate engagement, Twitter for IR? thoughts, Social media, reputation & IR, and Social media strategies: Talk, listen … or? Or go to the right side of this page, find “Browse by topic” and click IR 2.0 – Web & social media.)

Please comment with your ideas or links to social media & IR policies or resources.

Good news is, we’re all learning together. Have some fun along the way!

© Copyright 2009 Johnson Strategic Communications Inc.

Social media: Go there

September 17, 2009

Social media guru Brian Solis, principal of Silicon Valley PR firm Future Works, visited the Kansas City chapter of the Public Relations Society of America (PRSA) tonight – bringing the message that interactive web platforms are transforming the way companies communicate with their publics.

Brian comes at social media from a branding and public relations perspective, and his PR 2.0 blog is well-known. His first engagement in social media was selling digital cameras through the old bulletin boards and forums of the 1990s. And he still approaches the topic looking for measurable impact on sales of products.

As an investor relations practitioner focusing on communicating with financial audiences, I see most companies struggling to come to grips with social media. Web 2.0 is a threat to corporate reputations – and an opportunity. Most companies are still experimenting and trying to clarify their strategies. Some are in full denial.

Several messages that Brian shared stuck with me:

  • We are moving into this uncontrolled, overstimulated world of social media. Like it or not, customers and investors and employees are talking about our companies in blogs, on Twitter and Facebook, with videos on YouTube.
  • Most companies and communicators are struggling to find the best ways to participate in social media to connect with their audiences. “We’re all sort of equal in terms of what we don’t know,” Brian said. This was reassuring to hear from a guy who’s been at it since before Facebook, Twitter, etc. existed.
  • There is great value in personally visiting social media sites, searching for your company and brands, and listening to what people say. We should know who the influential reporters, bloggers and Twitterers are in our industries. By monitoring, we can calculate sentiment, garner feedback and get an early warning on crises, he said. Observation and data come before engagement.
  • Companies need to address the organizational issues of social media. In a couple of years, all areas of our companies will be using networking platforms, one way or another, Brian said. It’s inevitable given the rapidly rising public use of websites for networking, content creation and sharing.

Brian noted that his contacts from companies seeking help come from different departments: Customer Service, Marketing, IT – not just PR (usually not IR, I bet).

As communicators, we should come to grips with policy issues raised by new media and put tools and procedures in place for people across our companies. As IR people, we need to lead in planning for disclosure and capital market impacts.

Update: See also a post on this topic by Dan Schawbel on the PR 2.0 blog, and a neat post by Laurel Papworth, an Australia social media strategist, with lots of examples and links to social media policies (thanks to Dan for the link to her blog).