Insight's newsletter on IR communication trends

Here's proof that you can't hide from.

Darryl Heaps of Canada’s Q4 Web Systems shared the following data at an AIRA Social Media seminar in June 2010:

• 72% of internet users are part of at least one social network – 9540 million users globally. Source
• 85% of financial service professionals under 50 are using social media. Source
• 47% of institutional investors read financial blogs for investment research and ideas. And 20% of them have used blog research to execute a recommendation or investment decision. (Source: Brunswick Group study of 500 buy-side and sell-side)
• 63% of US professional investors say blogs and social media will play an increasingly important role in investment decisions in the future. (Source: Brunswick Group study of 500 buy-side and sell-side)
• 89% of journalists use blogs, 65% social network and 52% Twitter. Source
• 47% of retail investors look to financial websites and blogs for investment advice. Source

And in the year and a bit since then, the trend has accelerated. Twitter in particular is emerging in the North American market as the channel of choice, with companies and even CEOs using the 140 character platform to keep investors up to speed with new announcements, releases to the exchanges and even what’s happening in real time at AGMs.

‘Older investors’ aren’t immune from this strong trend either

Whilst it’s easy to dismiss social media as something for young people, a study from the Pew Research Centre suggests otherwise:

• Use of social media among older adults in the United States, aged 50 and older, has nearly doubled in the past 12 months – from 22% to 42%
• 47% of internet users between the ages of 50 – 64 and 26% over the age of 65 use social networking sites
• And they’re sophisticated users too: they’re using social media to ‘link, photos, videos, news and status updates with a growing network of contacts’.

And they’re not just signing up and not using these accounts:

• 33% of the same group are using social networking sites every day
• 16% of over 50 year old internet users are using Twitter or a similar service

The oft-heard excuse that most of our retail investors are older and therefore aren't internet savvy is fast losing its credence. They're more than internet savvy, they're social media savvy!

The evidence is clear. Communication with investors via social media will soon be de rigeur.

Mike Tisdall
Investor Communications specialist and Managing Director – Insight Communications

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