We can’t stress enough the importance of video and its pervasive use in today’s media landscape.
Aside from the sharing benefits and vast potential online media pickup, video creates stronger bonds with key audiences. It’s why we love movies so much. There’s no other medium that produces the same visceral effect.
Publicly traded companies are starting to realize this trend. Early adopters are using this medium to complement quarterly earnings, embedding video links in press releases as we did for our client (see above), Kirkland-based Market Leader, Inc. (Nasdaq: LEDR). Done right, videos that accompany press releases of all kinds should be news driven versus corporate slick, delivering more authenticity that is designed for viral uptick. Other companies that have used video for earnings include Dell, Citi, BASF, and InterContinental Hotels.
Leveraging video to communicate financial results can be quite daunting however, especially since these platforms are relatively new to investor audiences. While the SEC’s Office of Compliance Inspections and Examinations offers guidance on the use of social media for investment advisers, the bottom line boils down to best company judgment, and of course, input from counsel.
Professional investors are watching too. According to a study, 58 percent of institutional investors and sell-side analysts in the U.S. and Europe believe new media will become more important in helping them make investment decisions.
There’s no doubt that using social media to communicate to investors remains a fairly prickly topic among CEOs and the investment community. The reality is that more Fortune 500 companies are blogging, tweeting and utilizing new media platforms to communicate to key audiences in ways never before. Moreover, engaging in video builds social capital, a valuable network that ultimately enhances reputation, and we believe shareholder value, too.
— George Medici, firstname.lastname@example.org