BACK TO THE FUTURE: DIGITAL IR
The SEC’s April 2nd embrace of social media in the communication of key information willbe remembered as the day IR shed its digital training wheels and ushered in a new way of thinking about digital IR.However, the value of supplementing traditional IR with social media is already so essentialto enhancing share value that many did not wait for the slow-moving SEC’s mandate tobegin rolling out robust digital, social and engagement IR initiatives.
While the SEC cited a Netflix executive’s Facebook post as the catalyst for itsclarification, the issue had already reached critical mass due to a host of drivingforces – key among them:
Market influencers’ thirst for timely and accessibleinformation
driven by a rapid growth in the use of mobile devicesto scan charts and news has quickly made owned-web properties,news sites and social media critical sources for breaking financialnews and information.
The proliferation of high-frequency trading programs
igniting volatility and rapid shifts in valuation, which are heavily influencedby indexed content, including data, news and information fromowned digital and social properties.
Frequency, quality and accessibility of IR communications
as akey driver of reputation and share value, with reputation accountingfor more than half the share price of the top ten reputation leadersin 2011 and 31-percent among S&P 500 companies.