|By Business Wire||
|January 16, 2014 08:08 AM EST||
In an effort to assist investor relations officers in their use of social media as a research and communications platform, Business Wire, the global leader in press release distribution services and regulatory compliance today announced it has published The Benefits & Risks of Social Media for Financial Communication Professionals.
This guidance report details the opportunities and risks of using social media as both a research and communication tool in today’s investor relations programs. Included are 12 ways investor relations professionals can leverage social media tools for a stronger, more effective engagement program, as well as 12 reasons why social media platforms are not compliant communication tools.
“Over the last 50 years Business Wire has watched a wide range of tools emerge, to enhance the relationship between public companies and their core constituents. We weigh and measure the current and future impact of these tools on all relevant audiences – financial, media, internal and consumer to ensure we are providing the best guidance possible for our thousands of members worldwide.
"Social media platforms are natural hosts for interaction and engagement, and when used correctly are key components of the 2014 communications mosaic,” said Tom Becktold, senior vice president of marketing for Business Wire. “A strong social communications program enhances brand reputation, increases message adoption, creates transparency and provides media and analysts with insights, tools and supporting materials they need to write articles or research reports.
“However, investor relations professionals should note that today’s social networks are advertising supported platforms that often modify what and when content is served to each brand fan based on the individual’s personal engagement habits,” Becktold added. “The unique algorithms at play with each social platform are designed to hold users on the platform for as long as possible by serving content that is most meaningful to the user, and are by their very nature not designed for broad and simultaneous disclosure. It would be foolish for a company to rely solely on these platforms for the wide distribution and sharing of material news.”
Business Wire’s guidance for running a successful and legally compliant socially oriented investor communication program include:
- How to spot an emerging crisis or reputation attack using social media monitoring
- The importance and impact of multimedia to analysts and other key constituents
- Real time communications, or why live tweeting earnings works so well
- Ways to initiate and expand third party sharing of pertinent company information increasing the visibility and authority of your news
Business Wire’s guidance on why social media platforms are not appropriate as the sole method of disclosure includes:
- Potential coverage limitation
- Lack of visibility of social updates
- The impact and risk of message modification
- Social network demographics and usage rates
To download this free guide in its entirety, visit http://go.businesswire.com/social-media-for-financial-disclosure
To tweet this press release in its entirety, visit http://ctt.ec/G3T9i
About Business Wire
Business Wire, a Berkshire Hathaway company, is the global leader in press release distribution and regulatory disclosure. Investor relations, public relations, public policy and marketing professionals rely on Business Wire to accurately distribute market-moving news and multimedia, host online newsrooms and IR websites, build content marketing platforms, generate social engagements and provide audience analysis that improves interaction with specified target markets. Founded in 1961, Business Wire is a trusted source for news organizations, journalists, investment professionals and regulatory authorities, delivering news directly into editorial systems and leading online news sources via its multi-patented simultaneous NX Network. Business Wire has 32 offices worldwide to securely meet the varying needs of communications professionals and news consumers.