2014 brunswick investor use of digital and social media survey

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Abu Dhabi Beijing Berlin Brussels Dallas Dubai Frankfurt Hong Kong Johannesburg London Milan Munich New York Paris Rome San Francisco Sao Paulo Shanghai Singapore Stockholm Vienna Washington, D.C. 2014 Analyst and Investor Survey: Trends in the Use of Digital & Social Media by the Investment Community

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Brunswick is pleased to announce the release of our fourth annual survey on digital media usage by the investment community. Key findings from the survey include: • 70% of investors believe that the role of digital media will play an increasing role in future investment decisions • 29% of investors are proactively following up on leads initially found on micro-blogging services, such as Twitter • Twitter influence continues to expand, but its growing influence may be under-reported due to recent inclusion on other platforms, like Bloomberg • In ranking their top sources, investors gave information direct from companies an average rating of 1.9, higher than any other source • 35% of investors listed real-time subscription services, like Bloomberg, as becoming more valuable for their work, compared to 22% on our last survey

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Page 1: 2014 Brunswick Investor Use of Digital and Social Media Survey

Abu DhabiBeijingBerlinBrusselsDallasDubaiFrankfurtHong Kong

JohannesburgLondonMilanMunichNew YorkParisRomeSan Francisco

Sao PauloShanghaiSingaporeStockholmViennaWashington, D.C.

2014 Analyst and Investor Survey: Trends in the Use of Digital & Social Media by the Investment Community

Page 2: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 2

Executive summaryInvestors’ consumption of digital media for investment research continues to rise1

Online engagement is increasingly driving investment decisions2

59%Read blogs for

work

+730%

Use micro-blogging services for work

26%Use social networks for

work

+2

58%Investigated an

issue after reading a blog…

+127%

…then made an investment decision based

on a mosaic constructed around that blog post

+3

Twitter influence continues to expand, but its growth may be under-reported due to recent inclusion on other platforms, like Bloomberg, which also jumped in importance

31 in 7

Investors made an investment decision based

on a mosaic constructed around a tweet

36%Investors in US who said real-time

subscription services became more important this year

Page 3: 2014 Brunswick Investor Use of Digital and Social Media Survey

Ranking of various information sources

Page 4: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 4

2010 2012 2014

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2.0 2.0 1.9

3.03.4

3.3

3.93.53.7 3.6 3.9

4.1

4.5 4.5

5.0 5.15.3

6.15.8 5.8

Information direct from companies

Real time subscription information sources

Analyst research*

Primary market research

Online business media

Print business media

Digital media

Importance of information sourcesInformation direct from companies remained the highest ranked resource for investment decisions (based on a scale from 1 to 7)Top information sources

Q4. Please rank the following information sources by how much they influence your investment decisions or recommendations?* Indicates sell side and industry analyst research for buy-side analysts; indicates industry analyst research for sell-side analysts

Top Information Sources in 2014

Average Rank

Information direct from companies

1.9

Real time subscription information sources

3.3

Analyst research* 3.5

Primary market research 3.9

Online business media 4.5

Print business media 5.3

Digital media 5.8

Trends by year*

Reported by mean of rankings

Page 5: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 5

Importance of information sources(Average rank, lower figures mean they are more influential)

USA Europe Asia

Q4. Please rank the following information sources by how much they influence your investment decisions or recommendations?* Indicates sell side and industry analyst research for buy-side analysts; indicates industry analyst research for sell-side analysts

1.8

3.5

3.3

3.0

5.1

5.5

5.9

2.1

4.0

3.3

3.3

4.6

5.0

5.7

20122014

2.0

3.0

4.7

3.3

4.2

5.0

5.9

2.0

3.1

4.1

3.4

4.6

5.0

5.8

2.0

3.0

4.1

3.8

4.0

4.9

6.3

201020122014

Information direct from companies

Real time subscription information sources

Primary market research

Analyst research*

Online business media

Print business media

Digital media

1.8

3.3

3.4

3.8

4.4

5.5

5.8

2.1

3.4

3.4

3.5

4.4

5.3

5.8

2.1

3.0

3.3

4.0

4.3

5.2

6.0

201020122014

Reported by mean of rankings

Page 6: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 6

2010 2012 2014

1

2

3

4

5

6

7

2.4 2.5 2.4

3.23.4

3.5 3.43.5

4.1

3.53.8

3.8

5.3 5.4 5.4

6.76.9

6.5

Direct interaction with management

Conference calls, we-bcasts

Regulatory filings

Company news releases

Investor / corporate presentation

Company website

Company digital media presence

Information from companiesFace time with management remained the highest ranked resource made available by companies themselves (Based on a scale from 1 to 7)

Q5. Regarding information direct from companies, please rank the following by how much they influence your investment decisions or recommendations?

Top direct from company information sourcesTrends by year*Top Company

Information Sources in 2014

Average Rank

Direct interaction with management 2.4Conference calls, webcasts 3.4

Regulatory filings 3.4

Company news releases 3.5Investor / corporate presentation 3.8

Company website 5.4Company digital/social media presence 6.5 Reported by mean of

rankings

Page 7: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 7

Rating information from companies(Average rank, lower figures mean they are more influential)

USA Europe Asia

Q5. Regarding information direct from companies, please rank the following by how much they influence your investment decisions or recommendations?

Reported by mean of rankings

1.6

3.3

3.6

3.7

4

5.7

6.6

2.5

3.8

3.6

4.2

4.3

5.1

6.520122014

Direct interaction with management

Conference calls, webcasts

Regulatory filings

Company news releases

Investor / corporate presentation

Company website

Company digital media presence

2.6

3.3

3.4

3.5

3.9

5.5

6.3

2.7

3.2

3.3

4

3.7

5.6

7.1

2.5

2.9

3.2

3.7

3.5

5.5

6.6201020122014

2.6

3.5

3.4

3.4

3.5

5.2

6.7

2.4

3.6

3.6

4

3.6

5.4

7

2.3

3.5

3.6

3.2

3.5

5.2

6.7

201020122014

Page 8: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 8

Social NetworksTraditional business media – Print,

Radio, TV

0.13 0.110.2

0.060.21

0.11

Real time subscription services Blogs Traditional business media - Online

0.420.28 0.290.36 0.29 0.2

0.530.4 0.4

Changing importance of information sourcesReal-time subscription services and blogs are the media platforms that grew the most in importance according to investors

Q6. {MULTIPLE RESPONSE] Which, if any, of the following information sources have become more important to you in your job in the past year?

Percent saying each technology has become more important this year

Europe USA Asia

Europe USA Asia Europe USA Asia

Europe USA Asia Europe USA Asia

Page 9: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 9

Syndicated services see a rise in value

Q9. (OPEN-ENDED) Please list which digital media sources provide you with the most valuable information for your work? Please list these in order of importance to you.

Online-only Outlets (Seeking Alpha, Re/code, etc.)

Syndicated Subscription Services (Bloomberg, Reuters, etc.)

Traditional Media's Online Properties (WSJ.com, NYTimes.com, etc.)

Social Media (LinkedIn, Facebook, Twitter, etc.)

40%

35%

16%

9%

48%

22%

18%

12% 20122014

Page 10: 2014 Brunswick Investor Use of Digital and Social Media Survey

Impact of digital media

Page 11: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 11

23%

47%

21%

4% 6%

Yes, definitelyYes, probablyNo, probably notNo, definitely notUnsure

Most investors see the role of digital media increasingNearly three in four investors believe that the role of digital media will play an increasing role in future investment decisions; Investors in Asia believe this most strongly

Q12. Do you think that digital media such as blogs, micro-blogging services or social networking sites will play an increasingly important role in investment decisions in the future?

70% Increasing Role

Europe

USA Asia

64% 70% 79%

Page 12: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 12

2010 2012 20140%

10%

20%

30%

40%

50%

60%

70%

52%57% 58%

11%

28%

29%31% 29%28%

14% 23%25%

BlogsLinear (Blogs)Linear (Blogs)Micro-blogging services

+2

USA

Europe

Asia

67%

62%

52%54%

54%55%

29%

22%

26%25%

35%44%

30%

33%

21%19%

39%37%

26%

14%

25%21%

25%44%

Digital media driving issue investigationDigital media sources remain a key information source, as investors are proactively following up on leads initially found online

Q10. Have you ever read any information posted on a blog, micro-blogging service or social networking site that has prompted you to investigate an issue further for your work?

2014 2012

Blogs

Message boards

Social networking sites

Micro-blogging services

Information source prompting further investigation

Information source by year Information source in 2014 by region

+1

-1+1

Page 13: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 13

USA

Europe

Asia

28%

24%

25%22%

28%28%

10%4%

12%14%

23%24%

9%7%

9%9%

20%19%

4%4%

7%7%

15%21%2010 2012 20140%

5%

10%

15%

20%

25%

30%

18%

24%27%

4%

12%14%

5%

10%11%

2%

9% 7%

BlogsLinear (Blogs)Linear (Blogs)Micro-blog-ging servicesMessage boards

Digital media driving investment decisionsNearly one-quarter of Asian investors made an investment decision after consulting a micro-blog, doubling the frequency of other regions

Blogs

Message boards

Social networking sites

Micro-blogging services

Information source prompting investment decision

Information source by year

Q11. Have you ever made an investment decision or a recommendation after initially sourcing information from a blog, micro-blogging service or social networking site, which then led you to conduct additional research?

2014 2012

Information source in 2014 by region

+3

-2

+2+1

Page 14: 2014 Brunswick Investor Use of Digital and Social Media Survey

Appendix: approach and participants’ profiles

Page 15: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 15

Digital media and investment decisions

Quantitative research with buy-side investors and sell-side analysts across the U.S., Europe and Asia, designed to understand usage of digital media in the investment process.

Online data collected between October 15 and November 1, 2013. Invitations were sent to individuals from a subscription database, in USA,

Europe or Asia. The following job titles were invited:― Buy side: Analyst, Portfolio Manager, Portfolio Manager / Analyst, Director of

Research, Research Associate― Sell side: Analyst, Director of Equity Research, Research Associate

Data presented in the 2014, 2012 and 2010 surveys have been weighted by country to allow accurate comparison.

The survey included a sample size of 472 investors and had a margin of error of 4.5%.

Page 16: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 16

1%1%

48%

Job role and type of investments

48% Sell-side 52% Buy-side

Q2. Do you describe yourself as a buy-side investor or a sell-side analyst?Q3. Which of the following best describes your role and the type of investments you are responsible for?

21%

11%

5%

2%11%

Mutual fundHedge fundPension fundInsurance companyOther buy-sideAnalyst / Researcher

Analyst / Researcher

Investment advisor / Manager

Other sell-side

Page 17: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 17

Industry sector

Q13. What is the primary industry sector you cover?

18%

13%

8%5%4%4%2%

8%4%

33%Technology / Media / Telecoms

Consumer

Financial EnergyManufacturing / Indus-try

Healthcare

Utilities Other sectorSpecific geography Generalist

Page 18: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 18

Market cap focus

Q14. What is your market cap focus? Please indicate which currency.

Small Cap - $250m up to $2bnMid Cap - $2bn up to $10bnLarge Cap - $10bn up to $100bnOther currencyNot specified

13%

30%

27%

7%

24%

Page 19: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 19

Region

40%

40%

20%

USEUAsia

Q1. Where is your usual place of work?

Page 20: 2014 Brunswick Investor Use of Digital and Social Media Survey

© BRUNSWICK | 2014 | 20

Age

Q15. Which age band do you fit into?

20-2930-3940-4950+Refused

3%21%

29%27%

20%

Page 21: 2014 Brunswick Investor Use of Digital and Social Media Survey

Jason Golz [email protected]+1 415 671 7676

Sparky Zivin [email protected]+1 202 393 7337

For more information please contact: