Leveraging Social Media for Investor Engagement (Part 2)

Based on a report by Greenwich Associates, an overwhelming 80% of institutional investors use social media as an investment research tool. Surprisingly, 30% of investors admit that information obtained through social media directly influences their investment recommendations and decisions. In this blog post, we’ll take a closer look at how top companies leverage social platforms like LinkedIn, Twitter, and TikTok. We’ll analyze their approaches and extract valuable insights that can help improve investor relations initiatives.

Showcasing Successful Investor Relations Content on Social Media Platforms

Companies use social media to attract more investors by sharing engaging content like blog posts, infographics, videos, and other multimedia formats that highlight their achievements, products, or services. Here are some effective examples of IR on social media.

LinkedIn serves as a valuable tool for companies to publish financial reports, industry insights and job postings, while also connecting with investors and analysts.

Starbucks, the multinational coffee company, effectively engages their 2.63M followers on LinkedIn by promoting transparency in corporate practices and growth predictions, revealing a clear and forward-thinking strategy for stakeholders. They share inspiring customer and employee stories, provide updates on offerings and events, and showcase their strong corporate governance and ESG strategies.

In this example, the company provides a concise summary of the key points discussed during their Investor Day event. These summaries are accompanied by an image and a link to the full news article, allowing for more in-depth reading if desired. They actively engage in conversations with both attending and non-attending investors.

Bimbo, boasting 1.6M followers, consistently posts on the platform to announce quarterly reports, share sustainability strategies, conduct surveys to gather feedback from shareholders and individuals, showcase employees’ views and accomplishments, and provide management comments on different topics. The highlighted post serves as a prime example of how Bimbo leverages the platform,  announcing quarterly reports accompanied by a link to the full report and a concise CFO comment summarizing the results.

Twitter is valuable for sharing real-time news, financial results, and concise company updates, helping facilitate prompt responses to investors to this breaking news.

Airbnb, the startup unicorn, effectively utilized Twitter to overcome funding challenges. They strategically shared their journey, connected with investors, highlighted their unique business model, and fostered a dedicated community. This led to impressive results, securing $7.2 million in funding within a year.

With 883.4K Twitter followers, Airbnb leverages the platform for investor relations, sharing performance updates, news, and announcements. This fosters transparency, timely information diffusion, and meaningful investor engagement, all the while building and maintaining confidence.

In this post, Airbnb shares a captivating 30-second video summarizing their quarterly results, effectively highlighting the key metrics and achievements. The strategic use of concise visuals enables Airbnb to engage investors and convey essential information efficiently. Moreover, by providing a link to the complete report, Airbnb ensures that interested stakeholders can access comprehensive details. This approach not only makes the quarterly results visually stimulating but also empowers investors to delve deeper into the data, fostering transparency and trust.

Tesla, with an impressive 20.1M followers on Twitter, (both majority owned by Elon Musk), also demonstrates excellent IR practices on the platform. They leverage Twitter to live stream shareholder meetings and quarterly Q&A sessions, providing direct access to important company updates.  Additionally, Tesla showcases their ESG practices and shares the outcomes, while actively encouraging  conversations with shareholders and other followers to gain insights on areas for improvement. Tesla creates an inclusive and highly transparent environment.

YouTube and TikTok: Video is now crucial for conveying the core aspects of a business, creating compelling narratives, and enhancing product/service visibility. Among social media platforms, YouTube stands out as a top choice. Netflix exemplifies effective utilization with 17.3K subscribers, using YouTube for conducting Earnings Interviews. During these interviews, the Co-CEOs and CFO of the company are interviewed by a rotating lineup of interviewers, providing valuable insights for investors. The Vice-President of Duolingo, recognized for their innovative shareholder communication, highlights the engaging nature of video formats for earnings calls.

Also, in recent years, TikTok has risen as a dominant force in short-form video with 1B global monthly active users. It presents a remarkable opportunity for businesses to create educational content, share behind-the-scenes insights, and engage in CEO communications. With its expansive reach and captivating format, TikTok enables companies to effectively connect with a broad, and especially younger audience, showcasing their brand in unique and creative ways.

IR Websites: These play a vital role for investors, with 72% of investors making investment decisions based on information from them (Brunswick 2021 Digital Investor Survey). Companies can choose stand-alone websites or integrate them into corporate pages. Except for Grupo Bimbo, all mentioned companies have stand-alone IR websites. When determining the best approach, companies should prioritize ensuring easy access to the information investors need. If a stand-alone website is less distracting and provides a dedicated space for investors to access desired information, we recommend adopting a stand-alone IR website. Alternatively, if the IR information can be seamlessly incorporated into the corporate site without confusing investors or causing difficulties, then that option is also viable. To discover excellent website examples and gain insights on enhancing your IR website, visit “Improving Your IR Website” by Miranda Partners.

Top 5 IR Practices for Social Media

1. Develop a clear strategy that outlines the goals, target audience, messaging, and tactics for using social media to engage with investors.
2. Be transparent. Use social media for real-time updates, ensuring accuracy and consistency with other communications channels.
3. Create engaging and informative content. Highlight company strengths and differentiators through visually appealing blog posts, infographics, and videos, while keeping the news page visually interesting.
4. Monitor engagement. Understand how your content is performing, track investor sentiment, and identify potential issues.
5. Leverage team for organic growth. Encourage employees to share posts on their personal social media accounts, driving engagement and natural growth.

Social media platforms provide a valuable opportunity for companies to improve their investor relations. Key takeaways include diversifying social media presence, prioritizing transparency and values, using multimedia content, tailoring content to target audiences, and adopting a customer-centric approach. Harnessing the power of social media is crucial in today’s business landscape to expand the investor base and establish meaningful connections with the investment community.

At Miranda Partners, we specialize in helping companies unlock the full potential of their digital marketing campaigns and platforms. Our experienced team tailor’s effective social media strategies for your investor relations, providing guidance and support to maximize your social media presence and build strong investor relations.

For more information on platforms, best practices for social media and tips on paid social media services you can visit Miranda Partners IR News and read “Getting the Most out of Investor Relations with Social Media”.