It’s safe to say that multimedia technology and IR have not always been natural bedfellows – and one of the key reasons is the all-important human interaction and engagement required to do investor communications effectively, says John Gollifer, general manager of the UK’s IR Society. ‘That’s why we still call it investor relations,’ he states firmly. But he and other professionals also recognize that multimedia tools can help teams ‘bring stories to life’ and achieve other goals.
Marina Zakharova de Calero, CEO of London-based Conduit Communications, agrees that IROs and multimedia don’t have a natural relationship. ‘Overall, the IR industry is still in the Jurassic Era when it comes to technology,’ she says. ‘There are many reasons: limited resources, budget and time are all contributors, as is the regulatory nature of the industry.’
She adds, however, that the approach to multimedia also depends on how technophobic the IR team and the board are: ‘There are certainly exceptions, mainly driven by individuals within the company who have the support of the board – like someone who has to approve the budget – to move those traditional boundaries and test innovative ways of doing IR.’
Taking the new road
This is often seen at tech and telecoms firms, where there is in-house know-how. ‘In a time of further pressure on IR resources, in-house teams should, if not fully embrace then at least consider adopting technology and multimedia in their day-to-day lives in areas where it would either save time or support and crystallize the message,’ says Zakharova de Calero.
The benefits of using technology to improve process and execution efficiencies are often considered clear, such as with customer relationship management systems, but multimedia can also be put to good use. ‘For example, corporate business models can be more visual and interactive, with video clips incorporated into the IR presentation given by the chief executive. The same goes for fact sheets and even results presentations,’ observes Zakharova de Calero.
She admits to being a skeptic when it comes to regularly using social media in investor relations, however. ‘As most of the IR target audience doesn’t use it for business purposes and as it has to be done properly, the return on time investment is questionable,’ she explains. ‘But selective use in collaboration with PR can certainly bring benefits to, for example, capital markets days, product launches and new geographies.’
From IRO to RoboIRO
Gollifer is willing to gaze into the future to see how existing technology could impact the IR professional. ‘If we imagine the IRO of tomorrow, he or she would be something like a RoboIRO – by which I mean like RoboCop, who did indeed have human traits, such as the ability to reason, empathize and build relationships, but could still kick ass.’
Put another way, IROs will still be human but will also be tech-savvy operators with all the tools at their disposal to fully integrate all IR communications. ‘This means better use of multimedia to bring stories to life,’ notes Gollifer. ‘It also means more use of artificial intelligence to data mine, spot changes in patterns and produce analytics that should inform the strategic thinking of IROs, as well as other market participants – just like it could for RoboCop or RoboRegulator.’
Gollifer says this would mean better use of technology to build more interactive websites – a first port of call for all stakeholders – with different shapes and sizes of content to suit new users and, no doubt, even more IR apps. ‘Over and above what we expect in accessibility, usability and functionality, I think design, look, feel and quality will have to appeal more broadly to the next generation of investors,’ he explains. ‘Where is the Steve Jobs of IR? If we can add him to the IRO of today, we may well have RoboIRO.’
But how does IR get to this advanced stage? What are the multimedia tools IR professionals should be looking at now? ‘Online video is growing in use by IR teams,’ says Scott Payton, managing partner of Bowen Craggs. ‘Providing short video commentary from the CEO or CFO alongside other quarterly results materials on the company website conveys a positive impression of openness, as well as being useful in its own right.’
Zakharova de Calero agrees. ‘Videoconferences are gaining in popularity, and technology now allows nearly awless execution,’ she notes. ‘These make a more visually appealing proposition to investors, as it is easier to understand in the short time investors and companies actually spend on direct engagement – they’re certainly more memorable and ef cient than a long slide deck.’ Anglo American, the FTSE 100 mining company, is a good example, with videos and animations on YouTube that explain its mission, achievements, policies and results highlights.
That said, video and audio webcasts of results presentations have been provided in IR sections for years, and sometimes technology can be supported by more basic applications. ‘Our research shows that analysts appreciate the inclusion of a PDF transcript alongside the webcast so they don’t have to watch the entire webcast to nd something specific,’ says Payton.
But using PDFs is evidence that companies have been slow to embrace new media for IR purposes. ‘While their marketing, sales and back offices have all transformed into digital-first areas of business, IR remains wedded to the PDF and the spreadsheet,’ warns Oliver Schutzmann, CEO of Iridium Investor Relations. Podcasts, once deemed old hat, are enjoying a renaissance in the corporate communications world, with Goldman Sachs being something of a pioneer. It also makes sense to make results conference calls available as an audio download. ‘As far as IR apps are concerned, most companies have found that the time and money involved in maintaining them outweighs their benefits – especially if the IR section of the corporate website is mobile-friendly,’ adds Payton.
Infographics, meanwhile, have become fashionable in recent years. ‘When done well, they can be a great way of conveying complex information in an engaging and accessible way,’ Payton continues. ‘Done just for the sake of it, however, infographics can be a bit gimmicky and a waste of time.’
More multimedia for the millennial
Schutzmann looks to an underlying commitment to technology. ‘The question should not be, How can we use multimedia and digital? but rather, Why are we not using it more?’ he says. ‘The generation that is in its 20s today is the first generation that has never known life without the internet. The internet to a millennial is like the motor car for older generations: a world without it is both unknown and unthinkable.’ He also feels the greatest barrier to multimedia in IR is compliance. ‘How can we possibly comply with regulations in a 140-character tweet, or a 30-second animation?’ he asks.
Multimedia and digital are surely not going to replace existing investor communications – they are going to augment them. The opportunity lies in reaching new audiences and nding new ways to deliver investor messages. ‘For companies with a meaningful retail shareholder base, multimedia provides the chance to deliver accurate and timely messages to an audience that is too often neglected – and to do so in engaging and impactful ways,’ says Schutzmann.
These messages, it should be noted, are in addition to the regular disclosures, but they perform a valuable task: delivering the investor story to investors or professionals who would rather not read the annual report, ideally with craft, skill and wit. For example, most consumer brands are more active on Facebook and Instagram than they are in traditional advertising channels. These are not necessarily considered true IR tools, but they are a good example of brands using multimedia and digital to build a personality and to engage their audiences, in just the same way IR teams seek to engage investors.
‘The smartest companies view all communications as a way to build relationships and to amplify their messages,’ says Schutzmann. ‘What multimedia and digital enable them to do is micro-target their audiences and deliver appropriate messages.’
CASE STUDIES IN MULTIMEDIA EXCELLENCE
Anta Sports
Anta Sports won the best use of multimedia for IR award at the IR Magazine Awards – Greater China 2017. The company notes that capital markets are moving at an ever-faster pace, and IR needs to be heard in what the company describes as an ‘overwhelming environment’ where ‘information accuracy, quality and timeliness’ are in high demand.
Anta responded to the challenge with a host of information options for investors, the public and other stakeholders, including live video webcasts of IR events, mini-sites, video infographics and even contact via messaging service WeChat. These channels boosted Anta’s profile and helped the firm – which operates across Greater China as well as the US – ‘overcome geographic limitations in communications, and practice fair disclosure as much as possible.’
The Hong Kong-listed company says it sees the benefits of its ‘holistic communication initiative’ not only through positive feedback but also through activity on its communication channels, as well as IR queries about – and via – its online presence.
PTT Exploration & Production
Multimedia is a critical component of an effective communication strategy.
In essence, the more integrated multimedia channels are, the better the communication will be with investors in this rapidly changing environment. A good example is Thai company PTT Exploration & Production (PTTEP), which won the award for best use of multimedia for IR at the IR Magazine Awards – South East Asia 2017.
PTTEP’s biggest challenge in recent years has been to demonstrate its ability to manage investor con dence in the company in a low oil-price environment. PTTEP therefore offered a webcast the day after its analyst meetings for stakeholders who could not attend the meeting in person, as well as an English transcript and voiceover within 10 business days.
Among other initiatives, it has launched infographics to provide industry knowledge to investors, produced a video about non-recurring items on its website to educate investors, and created a chat room called LINE, where analysts are able to interact with the team and management 24/7.
