How to Measure Investor Relations Success

/in , /by

In our ongoing “back-to-basics” blog series defining PR and IR, this article helps explain how to best measure investor relations efforts.

In a previous post, we explored the fundamentals of investor relations, highlighting its role in helping publicly traded companies communicate with Wall Street, shareholders and the broader financial community.

The next step is understanding how to evaluate an IR program’s effectiveness, a task that is quite nuanced and requires a blend of qualitative and quantitative metrics. While stock performance provides a tangible benchmark, valuation is more tied to a company’s financial results than IR.  Factors such as shareholder sentiment, media perception and the effectiveness of investor communications add important context.

A few metrics to follow:

  • Quarterly conference call participation: Track whether investor participation in earnings calls is increasing over time. Are more investors joining now than last year? Monitoring participation helps assess if the calls and messaging are reaching the right audience.
  • Institutional investor growth: Evaluate changes in the institutional investor base. Have quality, actively managed investment firms shown interest? Seek to maintain an appropriate ratio of institutional to individual investors.
  • Trading volume trends: While valuation depends largely on company performance, an increase in trading volume can indicate that IR efforts are helping to drive investor interest.
  • IR website traffic: Measure the number of visitors to the investor relations website. An optimized, well-structured website that also meets best-in-class standards can help generate increased awareness, as well as educate investors.
  • Inbound investor inquiries: Track call and email volume, and also assess sentiment. Are investors engaged or raising concerns? Understanding context helps refine an IR strategy.
  • Long-term sentiment tracking: Use perception audits to gauge shifts in investor and analyst sentiment. Comparing results before and after strategic messaging adjustments provides insights into IR effectiveness.

Measuring investor relations success requires a holistic approach that blends quantitative data with qualitative insights. By consistently evaluating these metrics, companies can refine their communication strategies, strengthen investor confidence and ultimately create long-term shareholder value.

George Medici, gmedici@pondel.com

How to Measure Public Relations Success

/in , /by

In our ongoing “back-to-basics” blog series defining PR and IR, this article helps explain how to best measure your public relations efforts. 

In a previous post, we explored how public relations can help businesses, brands and organizations shape their reputations and build relationships across a diverse range of audiences, from customers to investors.

Measuring success in public relations is not an exact science. And contrary to what some believe, it most often does not correlate to the sheer volume of media coverage.

Tracking milestones, metrics and sentiment can be used to assess the impact of PR efforts on an organization’s reputation, visibility and relationships with stakeholders. Consider these benchmarks for measurement:  

  • Message penetration: Pre- and post-campaign surveys assess PR impact on brand reputation, share of voice, as well as attitudes and behaviors.
  • Website traffic: Monitor SEO and traffic changes after company events or news to measure brand awareness and interest.
  • Social media engagement: Track likes, shares, comments and follower growth to gauge audience interaction.
  • Media relations: Beyond impressions and coverage, quantify journalist engagement and feedback for long-term media success.
  • Blog development: Consistent content and delivery reinforce brand messaging for customers, partners and investors.
  • Speaking opportunities: Securing keynotes or panel appearances help to position companies and their spokespeople as industry experts and thought leaders.
  • Lead generation: Attribute new leads or sales spikes to concentrated PR efforts.
  • Earned media value: Consider assigning a dollar value to PR coverage based on what similar advertising would cost.
  • Programming: Assign value to completed PR tactics to track progress and effectiveness.
  • Feedback: Collect insights from stakeholders via reviews and direct communication.

PR success can be measured through various benchmarks but remains more art than science. Metrics such as media coverage, SEO and website traffic provide tangible indicators, but the true value of public relations often lies in less quantifiable factors—shaping perceptions, building trust and strengthening relationships over time.

The same applies to investor relations, where success isn’t solely defined by stock performance or analyst coverage. Effective IR strategies focus on transparent communication, fostering investor confidence and maintaining long-term credibility.

Effective PR doesn’t always deliver immediate or easily measurable results, yet its impact on brand reputation and stakeholder sentiment can be profound. By combining data-driven insights with an understanding of these intangibles, organizations can gain a more holistic view of their PR effectiveness.

George Medici, gmedici@pondel.com

What Do Public Relations Firms Do? 

/in , , /by

In our ongoing “back-to-basics” blog series defining public relations and investor relations, this post dives into the essential functions of PR agencies and the value they bring to clients.

At its core, a public relations firm helps businesses, brands and organizations shape their reputations and build relationships with diverse audiences—including consumers, customers, partners, investors, and legislators, among others.

Public relations services can vary widely depending on the client, objectives and budget. Below are some common tasks that PR firms typically handle:

  • Key Messaging: Developing central talking points that guide all communications with specific audiences. Each stakeholder group receives tailored messaging.
  • Media Relations: Securing positive media coverage through press releases, media pitches and by fostering relationships with journalists and media outlets.
  • Media and Presentation Training: Coaching individuals to effectively communicate with the media or deliver a presentation through specialized on-camera training, coaching and analysis.
  • Brand Building: Monitoring public opinion and sentiment and working to enhance or repair client reputations through proactive communication strategies.
  • Analyst Relations: Connecting clients with industry analysts to gain valuable endorsements, improved market perception and increased trust from potential customers, investors and partners.
  • Crisis Management: Navigating crises by managing communications among all stakeholder groups during challenging times to protect an organization’s reputation and minimize negative impact.
  • Digital PR and SEO: Creating and managing content for digital platforms like social media, blogs and websites to engage with audiences, while using SEO strategies to increase visibility and engagement.
  • Event Marketing: Organizing product or service launches, press conferences and promotional activities to help generate positive publicity and engage with target audiences.
  • Internal Communications: Developing communication strategies to ensure consistent messaging and alignment among employees, executives and other internal stakeholders.
  • Influencer Marketing: Identifying and collaborating with third-party spokespeople and thought leaders to help amplify a client’s message and reach target audiences.

Overall, PR firms play a crucial role in helping businesses and organizations manage their public image, navigate challenges and build strong relationships with their stakeholders.

George Medici, gmedici@pondel.com

What Do Investor Relations Firms Do?

/in , /by

As part of our ongoing “back-to-basics” series on public relations and investor relations (IR), this blog outlines what an IR firm does and how choosing the right one can make a difference.

Investor relations firms primarily assist publicly traded companies in effectively communicating their financial performance and strategic goals to the investment community. Acting as both strategic advisors and tactical operators, IR firms ensure that messaging is clear, compelling and delivered to the appropriate audiences.

Here’s a breakdown of some of an IR firm’s key responsibilities:

Financial reporting and analysis: Preparing quarterly and annual financial materials, such as earnings press releases, conference call scripts, Q&A prep documents and investor presentations. An IR firm’s ability to analyze and interpret financial results ensures that investors fully understand a company’s performance within the broader industry and macroeconomic environment.

Investor and sell-side analyst targeting: Identifying investors and stock analysts whose mandates align with the company’s financial and industry profile. An IR firm organizes non-deal roadshows to connect issuers with potential investors, while recommending relevant conferences for company participation, and helping to foster long-term investor relationships.

Perception audits and key messaging: Conducting qualitative surveys of current and potential investors and other relevant stakeholders. The findings from these studies are crucial for refining key messages that align with investor expectations.

IPOs and follow-on offerings: Guiding companies through the entire initial public offering (IPO) process in conjunction with a company’s investment banking, legal and accounting teams. Activities include strategic counsel, crafting messaging, development of the presentation deck and press materials, and regulatory compliance training, such as with Regulation FD. An IR firm also will assist with secondary and follow-on offerings in much the same way as with an IPO.

Corporate governance: Ensuring that companies follow regulatory requirements and best practices, including environmental, social and governance (ESG) standards, Securities and Exchange Commission (SEC) mandates, and rules and regulations governing IR websites. Maintaining transparency is essential for fostering trust and credibility with investors.

Crisis management: Managing communications with key stakeholders, including investors and media, to mitigate reputational damage and minimize the impact on the company’s stock price during a tumultuous event. Effective crisis management is crucial for maintaining stakeholder confidence and ensuring a swift recovery.

Investor/capital market days: Assisting companies in planning and executing investor or capital market days to directly engage in a meaningful way with investors and analysts. These events showcase the company’s strategic vision, progress, financial performance and growth prospects, strengthening relationships and investor loyalty.

Market intelligence: Provide companies with valuable insights into current investor activity and sentiment, market trends and peer activities, to help management refine key messaging and optimize investor relations strategies.

IR firms are essential partners to public companies. They offer both strategic guidance and tactical support. They play a crucial role in enhancing a company’s reputation and credibility, helping build trust with investors, which can lead to long-term success and enhanced shareholder value.

George Medici, gmedici@pondel.com

What is Public Relations?

/in , , /by

As part of our “back-to-basics” blog series on the foundational tenants of our business, we are dedicating this post to public relations. 

Many people have heard of public relations, but not everyone truly understands what it involves. A common perception is that public relations is simply about interacting with the public. While there’s some truth to this, the reality is much more nuanced.

A useful analogy can help with clarification: In advertising, the emphasis is on self-promotion, where the subject speaks for itself. In contrast, public relations involves third parties objectively communicating on behalf of the subject.

Public relations, or PR for short, is a form of mass communications used to engage with different types of audiences, including consumers, customers, employees, investors and lawmakers, among many other stakeholders. Specialized disciplines such as investor relations, crisis communications, government and employee relations all make use of public relations tools and tactics.

PR may be utilized to inform, persuade, highlight a particular point-of-view or prompt a call to action. It could be about a specific product, company, service or issue. Typically, an organization will engage a public relations firm to create and implement a program aimed at influencing one or several key stakeholder groups. For publicly traded companies, for example, a robust PR strategy can help increase awareness and visibility among investors, who look to third-party messaging to help inform their investing decisions.

At its core, public relations involves creating awareness between a brand or organization and its key audiences through carefully crafted messaging. These messages, often referred to as “talking points,” answer the essential question: What are the main points we want to communicate to these audiences?

The next step is determining how and where these messages are delivered. Talking points are transformed into various types of content, which are then distributed across a wide range of mass and specialized media, including news outlets, industry publications, digital and social media, broadcast channels, and more.

A fundamental objective in PR is how best to reach target groups where they work and live. Until the Internet, TV and newspapers were very influential, and still are to some degree. However, reaching targeted audiences in today’s Web-based world has become increasingly complex.

That’s why PR often is considered more of an art than a science. Crafting content that resonates with people and makes a real impact requires a great deal of critical thought and creativity within legal and regulatory confines, of course. Press releases, videos, newsletters, social media posts, podcasts and op-eds are just a few of the many essential tools used to inform and engage key stakeholders.

Whether it’s encouraging consumers to buy a product or investors to buy or hold a stock, or positioning a CEO as an industry expert, the ultimate goal of public relations remains the same: to help effect change and action, and to communicate with people in meaningful and transparent ways. That’s what public relations is all about.

George Medici, gmedici@pondel.com

What is Investor Relations? 

/in , , /by

As part of our “back-to-basics” blog series on the basic tenants of our business, we’re going to dedicate this post to investor relations.  

It is important to note that the number of investor relations firms, even in major financial markets, such as New York, Los Angeles, Chicago and San Francisco, is relatively small. That’s probably why when we’re at events or gatherings outside of our industry, we’re often asked, “What exactly is investor relations?” 

Let’s keep it simple: Investor relations, or IR for short, is a communications specialty that focuses on helping publicly traded companies get their stories out to Wall Street, including shareholders, potential investors and the broader financial community. Another term sometimes used to describe investor relations is financial public relations.

Public companies come in all sizes, usually determined by market capitalization, which is a company’s total stock value in the public marketplace on any given day. Stocks can be traded in the U.S. ­on Nasdaq, the New York Stock Exchange (NYSE), the OTC Markets, or on foreign exchanges such as the Toronto Stock Exchange (TSX), London Stock Exchange (LSE) and Frankfurt Stock Exchange (FRA), among many others. 

While public companies are highly diverse in what they do, all of them are regulated by governing agencies, depending on where their stock is traded. In the U.S., for example, the main governing body is the Securities and Exchange Commission (SEC), which requires, among other things, that all public companies follow a set of rules and regulations that ensure free and fair disclosure to everyone.

Compliance with these SEC rules is complex for those who are not in the know. Most public companies rely on investor relations professionals, whether in-house or externally, in addition to SEC attorneys, to assure compliance and language that is understandable. The main job of the IR professional is to help the public company communicate clearly and transparently, and in keeping with the law.

Investor relations encompasses many facets, such as disseminating financial information via traditional and social media; responding to investor inquiries; identifying prospective investors and research opportunities; organizing informational and required annual meetings; preparing investor presentations; and more.

Bottom line, the investor relations function is to manage the communications between a public company and investors, while at the same time being cognizant of other audiences – including employees, customers and suppliers – that may be recipients of the information.

The ultimate goal of IR is to deliver a cohesive and compelling message that resonates with investors, ultimately to help build shareholder value that is consistent with a company’s performance, progress, prospects and peers.

George Medici, gmedici@pondel.com