Remember the early days of the web? Corporate web sites were often a mish-mash of content from a range of departments just slammed together in a common space. Try comparing it to the other materials sent out by the company and you’d wonder if you’d got the right address.
Thankfully, things have moved on. The heady early days of the web and its ‘slam-it-up-there’ philosophy have largely disappeared. Electronic material has been gradually absorbed into the wider corporate branding ethic. Indeed, some say it’s not just the electronic and printed corporate materials which are being molded together; the multi-channel worlds of advertising, PR, financial communications and corporate branding are all increasingly consolidating into one. The result is a commonly branded ongoing ‘campaign’ where printed materials dovetail with an array of electronic access points, marketing and advertising themes, all with the same distinct look and feel. Sounds obvious, doesn’t it? But we’re not quite there yet.
Light fantastic
David Bickerton, managing director at UK corporate reporting specialists, Pauffley, confirms that some companies have already seen the light – on the corporate reporting front, at least. He says print and digital communications work best in tandem – supporting and referring to each other. Web sites can be updated easily and users can choose what information they want to see. But print materials retain key advantages too – their visual impact and sophistication cannot be matched. Their physical structure enables a complex message to be built up over several pages.
Martin Flaherty, a former director at Atlanta-based Elemental and now advising companies independently, broadly supports the Bickerton hypothesis. ‘We are increasingly seeing the integration of technology and greater immediacy of information. It’s still not ubiquitous, but it’s gaining popularity, because research shows that people don’t read a print book the way they read a web page,’ he explains.
Channels of communication should therefore offer a different spin on the same data. In some instances there’s also a desire to communicate an underlying brand message, using the internet. ‘When IBM wishes to show thought leadership, it can do so through its web design,’ explains Flaherty. ‘So while the editorial and imagery of the web and print are basically the same, the way the message is conveyed is different.’
Bill Cahan, president of San Francisco-based agency Cahan Associates, sees a consolidation taking place. But he also feels it’s one where print holds its own in new and exciting ways. He says his own agency is pushing back the boundaries in the way it positions printed financial communications, with recent annual reports it has designed being more akin to a customer marketing device than a sober report for institutions. It is still reporting, but with marketing and advertising all wrapped into the same medium. So, for example, Aurora Foods Inc’s report was delivered – appropriately enough – in a brown grocery bag; General Magic, provider of voice-enabled services, sent out a report that unfolds into a row of mouthing faces. On its reverse is the annual report in detail.
Witty? Thought-provoking? Perhaps these exemplify the new dawn for print. Cahan explains: ‘Being located near Silicon Valley the internet is a big driver and there’s less emphasis on print media. But some still maintain that it’s more important in print than on the net. At the end of the day there are increasing synergies between the two and we’re moving away from downloading the annual report as a PDF file to the use of much more interactive online techniques.’
He doesn’t think print is being unduly influenced by the web; rather, the two complement one another. He is also quick to point out that only 60 mn people in the US have internet access, out of a total population of 280 mn.
In the dark
Some members of the financial community would take this bald statistic to mean that, while a consolidation of channels may be taking place, many people will never notice, because they are only using a limited number of these channels.
‘If I’m finding new things in a company’s printed annual report then I’m probably not doing my job,’ confesses James Culverwell, senior analyst at Merrill Lynch in London. ‘I’ve seen a couple of examples recently where the report was used to make forward-looking statements, and the information supplied in print and on the web are both generally more informative. But if the annual report and other information are on the web, I cannot see the need to have it on paper as well.’
Culverwell predicts that the annual report and accounts will eventually be split into two distinct components: first, the descriptive form in hard copy, which provides a broad overview and will still be found in company reception areas; and, second, the detailed data on the web.
David Roycroft, head of corporate communications at UK glass manufacturer Pilkington, says there must be a genuine continuity between channels; what people see on a web site is also what they should expect to read in print form.
‘We know, from the number of hits received by our site that a lot of inquirers are now looking at our annual report on the web site. However, it’s going to be some time before we can offer the electronic version as an alternative to the paper, because all the figures must be read in conjunction with the full report,’ he points out.
Last year Pilkington changed its annual report from a big glossy affair to a much simpler document – closer to what it publishes on the web. ‘At the moment the annual report, in its current form, has a legal and symbolic significance as the primary channel for shareholders,’ says Roycroft. ‘But what we’re now moving toward is a continuous information situation, and we have redesigned our web site to give the people who access it choices, with a focus on the media, on investors and so on. Where you have to be careful is that some techniques used in the print version can interrupt the flow when used electronically. The test you have to apply is, would I use this?’
Two become one
Swedish electrical appliances manufacturer, Electrolux, has established similar synergies between the web and print. Birgitte Daherlus of its IR team does not anticipate the speedy demise of the latter – especially as many Electrolux investors are smaller and older retail shareholders who feel more comfortable with information on paper.
‘You will certainly see the annual report in paper form for some time yet but the number of copies may reduce,’ she says. ‘Currently we have two versions of our annual report on our web, and it’s the one which can be downloaded as a PDF file which is closer to the print version, so there’s still some difference between both media.’
She doesn’t believe the existence of faster online data will change the content and positioning of print channels: ‘We will stand by the same sort of historical information the report has always covered. Anything which can’t be printed in our annual report and accounts will certainly not be found on our web site before the annual report is published.’
Wolfgang Kirchmayr, investor relations director at Swiss healthcare company Novartis, based in Basel, echoes Roycroft’s view about the use of the web to ease pressure on the investor relations function.
‘We have put a great deal of effort into developing the electronic version of our financial communications,’ says Kirchmayr. ‘And we’re finding from the number of visitors to our site that there is a clear and increasing acceptance of this channel. If you look at the financial review, it’s more convenient to use than the book version.’
Kirchmayr cites the example of a hot button on the site, which enables the reader to quickly access the profit and loss account. This saves having to thumb through pages and pages of print to get to the information that’s right at the back of the hard-copy version of the annual report,’ he explains.
Novartis, like many others, has already segmented its investor audience by creating two annual statements of its affairs in print – a financial review and an operational one. The latter, simplified version of events goes mainly to small shareholders, while the large institutions and brokers receive both.
Brand new heavy
Centrica, better known in the UK through its key brands of British Gas and Goldfish, has fully embraced the age of new technology since its inception three years ago. April saw the launch of a refreshed web site with links to the IR pages and carrying the annual report in full.
‘We have devoted a lot of time and effort to get the web version of our annual report to reflect the look of the paper version, while also incorporating new elements which take full advantage of the new technology,’ explains head of investor relations Chris Milburn.
With some 1.3 mn shareholders – the vast majority of whom are small shareholders – the cost of producing and distributing the printed annual report is considerable. ‘While the smaller shareholders are usually sent a summary document, not the full annual report, there will still be significant cost savings for us in the future if the web grows in popularity,’ Milburn adds. ‘In particular it is proving more helpful in dealing with the many inquiries from non-investors who can often be advised to access the web site rather than receive a copy of the report.’
Centrica is also seeing increasing numbers of ‘professional’ investors accessing its site and downloading information – something which now appears to be a commonplace on both sides of the Atlantic.
Senior analyst Paul Nisbet at JSA Research in New York certainly supports the contention that there’s a decreasing need to be able to access both print and electronic forms – especially now that the technology for accessing the internet has improved. And that implies a need for common branding whatever the medium.
‘Each year we are getting closer and closer to not receiving paper financial communications – maybe not the annual report itself quite yet, but certainly most of the companies have stopped sending out their 10q’s and 10k’s and a lot of them now depend on the online news networks for their statements and press releases,’ he adds.
‘I used to hate getting copious press releases faxed over from companies,’ he recalls. ‘Now I can pull them off as I wish from a company’s web site. In the interests of the so-called paperless office, I’m all in favor of this trend.’
