Wednesday, March 20, 2013

How do companies use social media for their Investor Relations Strategies?


Social media has become the important part of the investors-relation revolution. Twitter, Facebook, YouTube, Slideshare and blogging are no longer just in the dominion of the individual. The social media space has unquestionably transferred the power resolutely into the hands of the investor as the information they now have access to, is no longer opinioned by large corporate and conventional media agendas.

Conceivably the most important product of this bucket of choice presented by new media is the change in investor prospect, not only in the means and frequency of information, but in the nature of its substance too. Social media demands a versatile, three-dimensional online presence – stakeholders need to feel as though they are face to face with a real human being. Therefore appointing an individual who can keep Corporation’s personality with accuracy and authenticity is the need of the hour. People are more prone to believe on whom they are linked to on virtual communities rather than reading quotations from company spokesperson on a news agency's website.

This faith can turn into a powerful tool in the event of a crisis. If tough associations are built with stakeholders via social media in the good times, this environment of clearness and investor confidence will give the company a sound traction in bad times. Also, with online communities the investor relation officer can address any negative publicity quickly with accuracy and on multiple platforms at a time, once again not having to depend on mainstream media, to decide on the story's news    value   and      possibly           misrepresent   stakeholders.

Today, it is easier to guess what investors and stakeholders want from the company in the social and online media platforms. Of course, in the public relations business all this information has to be dispersed with a certain amount of poise and a good helping approach, which is where the investor relations officer plays a very important role. It must be kept in mind that these new communication tools are just that - tools. They are not wonder workers and cannot replace a communication strategy. Just as any company plans and makes the strategy for mainstream media, online or social media also demands careful thought and consideration even though some consider it as a very spontaneous medium. Casual and passing posts may be good enough as an individual, but as a company they could have redundant consequences.

Social media impacts the Investor relations, and this can be seen in various activities like Stock fluctuation, Insider information and speculation, Board Issues, Shareholder organizing, which occur due to influence of social media.



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