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Investor interactions with digital and social media driving investments (infographic)

January 29th, 2013

social mediaThe global investment community continues to look to companies as their primary source of information as they form their investment recommendations and decisions, but since Brunswick Group’s last survey in 2010, investor and analyst interaction with digital and social media has increased substantially and deeper online engagement is increasingly driving investment action.

“Usage and engagement of digital and social media among those in the investment community is increasing rapidly,” said Rachelle Spero , Partner at Brunswick. “More telling, however, is that its influence on investment decisions continues to grow too.

Now, a quarter of those surveyed said they have made an investment decision or recommendation after initially reading a blog.

For Twitter, that figure is one in eight, up considerably from our last survey two years ago. This suggests now is the time for companies to adopt digital and social media for investor-related content distribution and influencer engagement.”

Key findings of the survey include:

  • 57 percent of participants selected “information direct from companies” as the source with most influence, while 85 percent ranked it among the top three sources of influence. Within this category, face time with management is by far the most important factor.
  • 14 percent of participants included “digital and social media” among their top three most influential sources, up from 6 percent two years ago.
  • 86 percent of investors say digital and social media sources have become more important this year, with investors in Asia appearing to lead the charge.

“While investors and analysts are increasingly influenced by digital and social media as the basis for investment decisions, companies and managers should be encouraged that the vast majority look to information direct from companies as the main building blocks of their investment rationales. The centerpiece of the information mosaic continues to rest with companies’ own communications efforts,” concluded Spero.

* Digital media was defined as websites, video, and syndicated sources. Social media was defined as blogs, micro-blogging services like Twitter, social networking sites, such as Facebook and LinkedIn and message boards.

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