Social media is making an impact on Australian investment decisions.
Information ASX-listed companies relay through social media can “unintentionally influence” investor decisions, according to a recent study by Victoria University’s Dr. Maria Prokofieva.
In fact, more Australian businesses are now tapping into social media, Dr. Prokofieva noted in an ABC News article. Companies are catching the attention of stakeholders through this digital space. And as investors are engaged, companies are able to direct them to making positive investment decisions.
More Australian businesses are now adopting social media to connect with investors.
Smaller companies stand to gain the most benefits in social media use, Dr. Prokofieva added. These businesses could draw on platforms such as Twitter to connect with investors. Helping make up for their lack of analyst and media coverage, unlike their larger counterparts.
Read on for some practical ideas on using social media, as your ASX-listed peers do…
1. Choose the social media channel that fits your business
Not all social media platforms are alike. Each has a specific design for relaying information. That’s why it’s important to get the right ones that serve your investor relations needs.
For instance, Twitter is often utilised to share financial results and corporate news. This info is the kind that companies usually distribute in traditional formats, like formal reporting and press releases.
Want to see how some companies are doing it? Check out the following screenshots from our clients’ social media accounts:
Horizon Oil’s tweet about their investor presentation and operations update.
LNG’s tweet about an executive’s video interview on certain projects.
As we’ve previously discussed, Twitter has been an active touchpoint for investors in the country, and for overseas investors in Australian companies. Some brokers, journalists and news services have started using $cashtags to track stocks and companies.
LinkedIn is popularly tapped for staff recruitment. But just like Facebook, LinkedIn can also be employed for company updates and industry developments.
Of course, there are many other platforms you can take up, like YouTube and Instagram. Ultimately, it would be best to pick the ones that match your communication needs. YouTube feeds can now also be integrated in your Newsroom setup as an input channel, making it easier to instantly notify investors when you upload your new videos.
2. Select the news you want to share on social media
Investors put great importance on annual reports and other news companies provide. And they see corporate websites as the most valuable information source for these announcements.
So, it’s a good idea to share a line or two about your news, then include the link to the main source that’s posted on your website. That way investors could find your site and read your announcements there and you drive more traffic back to your site where a whole wealth of information about your company lives.
What are companies like yours tweeting or posting? A wide range of updates that would be of interest to stakeholders. Quarterly and annual reports. Appointments to the board or executive team. Developments on operations or projects. Industry regulations or advancements. Just to name a few.
Rent’s LinkedIn post shared current trends related to their sector.
4. Engage with your investors on social media
As you’re tweeting or posting updates, be prepared to engage with your audience. Followers may like your post, comment on it, or even share it with others. This is ideal as it facilitates growth in your investment community.
Don’t forget to add links in your posts to lead investors to your website. Once directed there, provide them sign-ups for subscription to your email alerts, or to register to your upcoming AGM. Perhaps you can point them to your Investor Centre for more facts and figures. Or to present a video of your latest exploration. Take advantage of these possibilities to connect and showcase who you are and what you do.
These exchanges could help give you an idea on how investors see your brand. It could boost traffic to your site too.
Admedus shared recent AGM photos on Facebook.
In conclusion, companies like yours are adopting social media to help investors stay informed. How to start using it? First, you need to determine the appropriate platforms to utilise. Next, you have to relay the right messages. Then, engage with investors as they connect with you.
Want to discuss further?
We’d be happy to chat with you about basic social media strategies. We can even help set up your social media accounts and company pages.
We also have tools to easily publish news to social media. IRM Newsroom makes it easy for companies like yours to have a basic presence on Twitter around ASX Announcements and other news. Click here to try it for free.
Let us know how we can help. Call us on +61 2 8705 5444 or email firstname.lastname@example.org.
You can go to www.irmau.com for more information too.