Investor Relations 101

[Tina]

Issue Date: IR Alert - July 7, 2009,

Digital Strategies: Seven Key Things Public Companies Should Know about Investor Relations and Promotion in Today's Market

As a public company, there are multiple channels and destinations where investors consume information. In the current Web 2.0 environment, controlling those channels and destinations can be increasingly difficult and very different from traditional methods. In fact, public companies now face the challenge of pushing their story out to multiple audiences through multiple platforms in order to differentiate and gain exposure. Therefore, having a digital communications strategy in place will start with the right program and leverages new communications tools that allow companies to connect with all stakeholders more frequently.

As reported by investment networking multimedia Equedia, here are seven key points that every corporation should know and follow — an every IR firm should be ready to deliver.

1. Keep the Press Releases Flowing

It is imperative to frequently issue updates on your company regardless if you have significant news or not. This will not only help reach new investors, increase brand name recognition and increase your search engine results but gives you a reason to reach out to existing shareholders.

But don't let them go to waste. Ensure that every release encompasses what you are trying to say by including interactive media and exposure that elicits instantaneous response.

2. It Takes Time

It takes time to build a proper IR campaign that reaches the right investors. Promotion through newsletters, direct mail, and broadcasts do work – if you select the right firm. But they also work much better when combined with an IR strategy that can make every news release, email blast, direct mailers, and telephone calls twice as effective.

3. Set Expectations Before Hiring New IR or PR Firms

What are your IR goals? Utilizing proprietary databases of investors developed by a newsletter networks and financial media relations firms work great if you want quick volume but what's to keep the investors from selling? Corporations often make the mistake of hiring one firm with expectations that do not match their goals. Make sure you understand what the IR/PR Firm will do for you before engaging in their services. Often times, combining the right firms will work wonders and boost results exponentially.

Find an IR strategist that can help implement the proper program and your company will begin to realise the effective benefits of these strategies.

4. Education is Paramount

Corporations often fail to educate investors regarding their specific industry or sector. Third party reports, analyst research, and educational materials can steer new investments into your company and retain investors. It may be difficult for corporations to keep up with the copious amount of information so be sure to hire a firm that can assist you with these materials.

5. Work Your Way Up

Do not make the mistake of hiring and paying extravagant fees to IR firms that claim they can provide instantaneous buying into your company. Ask any firm you approach to start off with something small and have them prove their system before shelling out more cash. Often times, a good IR firm should have no problems with this and may often have non-advertised programs for corporations that meet their requirements. Once you have built some trust, do not hesitate to ask if they have or know of any bigger programs that might be in line with your objectives.

6. The Power of Video — How it Works

Online video exposure ensures maximum ROI for your communications efforts. Of all the online users that have viewed an online video ad or promotion, 52% took action, 45% elicited a response, 28% looked for more information, and 16% actually bought something.

Take a look at some of the public corporations who have engaged in corporate videos and see how they trade in terms of volume and reaction to positive news. You will be surprised at how effective a true video strategy can be. However, there are those who have spent thousands of dollars on corporate online video but have failed.

Before your corporation engages in new media exposure and communications, be sure to learn the strategies and opportunities available to ensure the success of your campaign.

7. Be Careful of IR Firms that Overcharge and Under-perform

Many IR firms cannot truly explain what it is they do and why they charge so much. Some firms charge to use their chat or forum services and some will charge to feature your corporation on their website. Be sure to understand the scope of their work before making any arrangements. With email spam and unsolicited programs still in effect, be careful when selecting a firm that may utilize these programs as they can tarnish the reputation of your company.