By Greg Hazley
Nearly one-third of investment professionals have followed up an issue after first learning about it on Twitter, and one in eight have made an investment decision or recommendation after first learning about it on the microblog service, according to a survey by Brunswick Group.
While digital engagement rises, traditional outlets like company news releases have declined, the study found.
Brunswick found engagement with companies via digital and social media is a top three resource for 14 percent of institutional investors and sell-side analysts, a six percent climb over 2012. One-quarter said they’ve made an investment decision or recommendation after initially reading a blog.
The number of investment pros who followed up a Twitter lead is up to 30%, up 19% since 2010, while 12% said they acted on information first gleaned in a Twitter post, up from just 4% in 2010.
Brunswick partner Rachelle Spero, a former EVP of Cohn & Wolfe's digital media practice, said digital and social media use and engagement in the investment community is increasing “rapidly,” suggesting companies adopt strategies for investor content and engagement.
More than half (52%) of the 476 analysts and investors in the U.S., Europe and Asia who responded said they read blogs, while 30% use Twitter and 24% use social networks – increases of 5%, 19% and %7, respectively.
Meanwhile, the importance of company news releases declined 13% over 2010 – to 37% from 50% -- and traditional business media fell 14% -- to 22% from 36% -- according to the study.
Face time and direct contact with management remains the most important factor among investment pros, while analyst research rose to No. 2.
Brunswick noted 57% of institutional investors and analysts surveyed said information coming directly from companies is the source with the most influence, placing company communications as the centerpiece. Eighty-five percent put it in the top three.
Reliance on digital and social media may be coming at a cost to major financial information providers as subscriptions to real-time services like Bloomberg and Reuters declined 10 percent, according to Brunswick. |