ciri bc social media workshop - september 25, 2009

CIRI BC

Social Media Workshop What every IRO should know

Presented by:Darrell HeapsCo-Founder & CEOQ4 Web Systems Fall 2009

Quick Poll

How many people here are on Twitter?

How many Tweeting now?

On Facebook?

Global Social Media Use0%

10%

20%

30%

40%

50%

60%

70%

80%

27%

36%

58%

67%

67% of global online population use social networks and blogs

Sep-06Jun-07Mar-08Mar-09

Source: Universal McCann Wave 3 & Nielsen Online reporthttp://bit.ly/11il0Y

Social Media is the Dominant Channel

Source: Ernst & Young - 2007

2000 2007 20090

2000400060008000

1000012000140001600018000

16000

6000

# of Sell Side Analysts

Sell Side Analysts

Securing analyst coverage is more difficult

3,000 est.

Websites used consistently

Source: Rivel Research

32%

43%

14%

8%

3%

75% of pro investors use corporate websites daily or weekly

Daily

Weekly

Monthly

Yearly

Never

Institutional adoption of social media

47% read information posted on a blog which prompted them to investigate an issue further

20% read information posted on a blog which led to an investment decision or recommendation

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 Sept 2009 http://bit.ly/yz482

Small-cap research is online

2008 2009

74% 78%

26% 22%

Small-Cap Investment Research

Online Offline

Source: Agoracom Sept 2009 http://bit.ly/4nXoHI

So what does this all mean?

“Fish Where the Fish are” The web and social media is becoming the dominant channel

Traditional channels are no longer effective on their own

Prioritizing the web and social media will help you to differentiate and compete more effectively for capital

Social Media & Investor Relations

Financial Blogs and Social Networks

Largest financial blog aggregator Partnered with Yahoo!Finance

4 million unique users/month – 25% institutional investors

Trading social network. Based on Twitter. Available through Bloomberg.

Wiki finance portal. Social interactive data.

SlideShare and Other Content Networks

Offsite SEO means increased discoverability

Majority not direct from companies

Companies should be publishing to establish “voice of authority”

http://www.slideshare.net/category/investor-relations

Embedded SlideShare Presentation

Companies Using Social Media

Barrick Gold on Twitter

ShareThis and Facebook

Facebook Leads Sharing

Facebook as an IR channel

Primary Benefits

Large Cap Real-time channel Voice of authority Mitigate value erosion Front run issues

Small Cap Increase exposure Get coverage Amplified content Find new investors

Return on Investment

Increased website traffic/unique visitors

Increased media mentions

Increased content spread and views

Accelerated messages to the market

Reducing costs/expenses

What are the risks?

The risks existing whether you participate or not

Only share content that has been previously disclosed (website content should be the focus)

Social media policy is key to ensuring material information is not released by mistake (travel example)

Thanks!

Follow me: www.twitter.com/darrellheaps