Drive Investor Confidence Through Integrated Communications Programs
A constant barrage of content is influencing the way individuals learn and develop perceptions about companies. And this influence cuts deeper than purchasing decisions for the next pair of jeans.
Recent FTI Consulting research findings show that investors are as hungry for media content as ever and that digital and social media channels are increasingly shaping decision-making.[1]
Business leaders must be aware of these habits – that are being solidified rather than emerging – and develop plans to engage their financial stakeholders through integrated communications programs. By strategically curating and crafting content coupled with targeted amplification, businesses can enhance their credibility, increase confidence, and ultimately drive investments.
Here’s what you need to know about how investor media habits are being shaped, how to create strategies that reflect these habits, and how to translate strategies into action.
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Social Media: The New Information Source for Investors
The way investors look for information about companies is changing.
Investors are continuously seeking news about the companies in which they invest to inform their points of view. FTI Consulting Research about effectively reaching investors shows that 98% of investors across generational groups are actively searching for news about the companies in their portfolio.[2] It is crucial to meet investors where they are and, what we now know is that increasingly, that place is social media.
Source: CEO Leadership Redefined research[3]
Our research further revealed that more than 80% of investors form perceptions of a company based on what they are seeing in the media or online, rather than relying solely on your presentation decks.[4] Historically, Investor Days, quarterly updates, official filings, and press releases have been the go-to methods for investor engagement. While these traditional communication channels still hold value, they alone are not enough to reach savvy investors.
In fact, according to our research, the majority of investors follow companies on Facebook. This behavior is led by Millennials, with 84% of them saying they follow companies on the Meta-owned platform, followed by Gen Xers (72%), and Boomers (60%).[5] The research revealed that platforms like X (formerly known as Twitter), YouTube, and LinkedIn are also frequented by investors.[6] As a business and employee-focused platform, LinkedIn is the best place for consistency across investor generations and for engaging policy influencers.
Source: CEO Leadership Redefined research[7]
The Social Media Impact on Investor Decisions
The media they absorb is leading to action.
In fact, 56% of investors surveyed increased their investment due to company news, while 50% of them considered increasing their investment, and 42% recommended others to invest.[8]
Source: CEO Leadership Redefined research[9]
Nearly half of investors surveyed (41%) reported that they started following a company on social media after seeing a positive story about them.[10] The result is a ripple effect: the same investors then share your news with their own social media followers, or talk to people within and outside their companies and networks about the news they read.
Simply put, what investors see about your company in news publications, news apps (think Apple News), and in their social media feeds can significantly boost perceptions about your business and drive investment.
If you want to deploy an integrated program that meets investors where they are – or simply aren’t seeing enough traction from your existing tactics – start with an analysis of your current channels and the media ecosystem around your company.
Seeing how stakeholders are engaging with your existing content and channels and what media and online discussions they are reading are the first step in understanding how to build the right platform for engagement.
Simply put, there is clear appetite among investors for information about your company, so when you have thoughtful content to share with them, take a good look at the landscape you’re operating in, set a strategic direction and commit to pushing forward to drive a message and amplify it at any turn.
Design Communications Strategies with Investors in Mind
Effective strategies require ongoing investment and maintenance.
Communications strategies must meet investors where they are.
An immediate improvement from using an integrated plan to meet investors where they are is elevating your program out of point-in-time outreach and towards a consistent and purposeful drumbeat. This repetition is what will drive perception shifts.
A program that features integrated channels will be self-reinforcing:
- The credibility of earned media coverage can drive conversation and provide content for companies, leadership, employees, and investors to share
- Corporate and investor relations websites can be powerful storytelling destinations for strategic updates and initiatives
- Social media – branded, leadership, and employees – are credible amplifiers of company news
- Digital advertising can help cut through the noise around a company or industry to land the right messages in front of investors
Deploying these integrated tactics will shape investor perception over time.
Audience behaviors are shaped over time, meaning these strategies need to be considered as long-term investments that require ongoing maintenance.
As with any relationship, building rapport and trust with the right reporters to align a company with a topic takes time.
Authenticity is key to a successful and sustainable strategy.
Similarly, establishing an editorial calendar to continue populating company and executive social media and web properties takes ongoing planning. Further, these channels require investment into content that is optimized to different feed algorithms or for search and capture the attention of users to engage and inform.
Finally, paid media tactics – from LinkedIn Ads to sponsored content – require varying levels of spend. Paid media planning should inform how budget can extend across milestones for maximum impact.
Smart KPIs and defining the right metrics at the start can help make sure these programs are performing over time and moving towards ultimate goals. What’s more, ongoing review of digital and media data can provide insight to companies on their audiences and help them spend more efficiently over time.
Our Takeaway
The insights gleaned from our research are indicative of general trends and do not apply to every investor or every company. Staying true to your corporate voice on the channels where people are used to hearing from you is an important way to maintain credibility.
Companies that are ready to shift their directional thinking and unlock the multi-stakeholder value social media platforms hold, should take the plunge. Be mindful that your informational reach may be far greater than you initially anticipated, and make sure to be thoughtful about how and when you leverage that sphere of influence to keep evolving and growing.
[1] FTI Consulting’s CEO Leadership Redefined research was conducted online by FTI Consulting’s Strategic Communications segment between January 18 – February 1, 2023, among:
- n=800 full-time employed professionals working for large companies with more than 250 employees and based in the United States. These respondents reflect companies employing a total sum aggregate of 3.9 million staff across the United States.
- n=250 global institutional investors, representing institutions with an average of $125 billion in assets under management.
- n=200 D.C. policy influencers, defined as those with experience working in a government
institution, think tank, trade association, political party, campaign or issue advocacy.
Contact James Condon at [email protected] for questions on survey methodology.
[2] See supra note 1.
[3] Findings from CEO Leadership Redefined research (see supra note 1), Q63: “Do you actively search or receive news alerts about companies you (FOR EMPLOYEES: work for) (FOR INVESTORS: invest in)?”
[4] See supra note 3.
[5] Findings from CEO Leadership Redefined research (see supra note 1), Q62: “On which social media channels do you typically follow companies? Please select all that apply.”
[6] See supra note 5.
[7] See supra note 5.
[8] Findings from CEO Leadership Redefined research (see supra note i), Q64: “Over the last 12 months, how has your perception of the (FOR EMPLOYEES: company you work for) (FOR INVESTORS: companies you invest in) changed as a result of seeing news or stories in the media or online?” and Q65: “What impact did seeing positive stories about (FOR EMPLOYEES: your company) (FOR INVESTORS: the company you invest in) have on you? Please select all that apply.”
[9] See supra note 8.
[10] See supra note 8.
| The views expressed in this article are those of the author(s) and not necessarily the views of FTI Consulting, its management, its subsidiaries, its affiliates, or its other professionals. ©2024 FTI Consulting, Inc. All rights reserved. www.fticonsulting.com |
