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n today’s rapidly evolving digital world, effective communication plays a pivotal role in engaging with shareholders, attracting potential investors, and, most importantly, building trust. IR teams face the unique challenge of connecting with an investor base that is more diverse and tech-savvy than ever before.
To adapt their approach, investor relations (IR)
professionals should consider tapping into the power of digital marketing, with content marketing serving as a cornerstone. Content marketing acts as a powerful, complementary strategy to connect with investors, tell their company’s story, highlight its value proposition, and showcase compelling financial opportunities. Technology continues to reshape the way informa- tion is consumed and the frequency of communication. Integrating direct, in-person engagement and direct digital engagement can provide IR with more meaningful and continuous interactions with investors. Changes within investor marketing, however, have
largely reacted to external events and have the potential to advance much further. For example, the adoption of webcasts for management presentations was driven by the implementation of rules governing fair disclosure. Use of video conferencing attained critical mass only recently in response to the pandemic. Many corporate marketing departments have adopted a more agile and measurable approach that blends search, social, and content marketing with analytics for continuous learning. Tis type of approach can supplement traditional methods of investor com- munication to more fully capture investor attention and effectively convey complex information. Gone are the days of simply issuing lengthy press releases and posting dense presentations. Today’s investors expect engaging content that not only informs but also breaks through the noise, sparks curiosity, and establishes a connection.
The Value of Storytelling “Storytelling is at the core of all good communications, whether it originates from investor relations, marketing or any other function,” said Lynn Tyson, Executive Di- rector, Investor Relations at Ford Motor Company. “We strive to have an integrated strategic communications plan across the company, underpinned by a compelling narrative and intentional story arcs, punctuated by key
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events like earnings, conferences, product launches and corporate announcements. Everything must ladder up to one story that supports our investment thesis and Ford+ plan, and resonates with all stakeholders, from employees and customers to the capital markets.” Active, bottom-up asset managers are running faster and faster to compete with passive, quantitative, and alternative funds. Analysts and portfolio managers are inundated with an overwhelming amount of data and information, making it challenging to sift through the noise and extract meaningful insights. Even a company’s most ardent followers can struggle to incorporate and contextualize news, updates, and commentary during busy earnings seasons.
Activate Content Marketing As Herbert Simon, a founder of the Carnegie Mellon School of Computer Science and researcher on deci- sion making, noted, “A wealth of information creates a poverty of attention.” To counteract this attention deficit and bridge the
gap, content marketing offers a compelling solution. By crafting and delivering content in a clear and concise manner, IR teams can captivate their audience and pro- vide valuable insights. Strategic use of content formats, such as informative videos, engaging infographics, and thought-provoking blog posts can effectively convey the company’s story, educate investors, and reinforce the investment thesis. “Part of our job in investor relations is to not only
describe our business and outlook, but also help educate investors on the category,” said Andrea James, Chief Communications Officer with responsibility for IR at Axon, a maker of public safety technology. “Te better our investors understand policing, our products, and the customer landscape, the better they will understand what drives our demand profile.” In the following sections, we explore five essential ideas to consider when incorporating content marketing into your IR strategy. Tese ideas will help craft your narrative, navigate the digital landscape, unleash the full potential of digital engagement, and ultimately help build a robust investor brand. Trough the fusion of analytics and emotions, content marketing has the power to bring the investment story to life and forge lasting connections with investors in this digital age.
niri.org/ irupdate
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