Social Media Reality Check 2.0

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Research Findings from the 2011 Study

Background

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• One of the most quickly evolving areas in the communications profession is social media.

• In 2009, CNW and Leger Marketing conducted the first Social Media Reality Check, a unique study that explored professional communicators’ use of social media compared with consumer opinions about social media influence on their purchasing behavior.

• This year, we’ve conducted the second installment, and uncovered some interesting findings. and added a U.S. target audience, as well as IR and the

financial community.

Questions to be Answered:

• What are communication professionals’ perceptions about the use of social media and what’s their / their company’s stake in it? How is it changing/growing? Are they on the right track with their audience?

• How does the general public use social media to gather information about the products they use and companies they follow? Are they more positive/loyal/trusting of those companies?

Canadian Results

PR Professionals & Consumers

Target groups were accessed via CNW contact lists and Leger’s online panel. Respondents completed a 10 - 15 minute online questionnaire from April 19 – May 9, 2011.

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Findings from both target groups were analyzed together. Results from the 2009 study were compared to this year’s results.Results can be considered accurate to within +/- 4.03% for communication professionals and +/-3.04% for users, at the 95% confidence level.

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Research Method

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Two target groups were invited to take the survey :• Sample of 590 Canadian communication professionals who

use social media – 77% of all professionals• Sample of 1039 Canadian consumers who use social media –

69% of all Canadians

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Social Media Usage

among Canadian consumers and communications professionals

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Within the Canadian section of this report, comparisons and key findings from the 2009 iteration of this study are found within a blue border like the one shown here.

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Most Used SitesIn 2009, usage levels of social media was significantly lower than it is in 2011. Twitter, in particular, has become nearly ubiquitous among communication professionals. The use of blogs has remained stable over the past two years.

2011 2009 2011 2009

Q. Which of the following, if any, have you used professionally ? Base: Communication professionals (n= 1039)Q. Which of the following have you used? Base: Consumers (n= 590)

Communications Professionals

Consumers


Consumers


Consumers


Consumers


Consumers


Consumers


Consumers


Consumers

Less often than once a month

Once a month A few times a month

Once a week A few times a week

Once a day More than once a day

3%2%6%4%

19%19%

47%

5%2%

10%5%

22%

15%

41%Consumers

Communications professionals

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Frequency of UseWhile the frequency of social media usage by communications professionals has remained consistent since 2009, the number of consumers who use social media more than once per day has increased by 10%

About six in ten use social media once a day or more

Q. In general, how often would you say that you use social media as part of your professional role ? Base: Communications professionals (n= 590)Q. How often would you say that you use social media applications? Base: Consumers (n= 1039)

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Uses for Social Media Among Communications Professionals

Engaging with investors

Tracking the impact of online chatter on my company's stock

Meeting new people

Researching or investigating products and services

Watching my competitors

Engaging with journalists and bloggers

Keeping up to date with industry peers

Monitoring talk about my business

Keeping up to date with industry news

Sharing information and ideas

Learning about news and information

5%

10%

28%

38%

39%

45%

56%

59%

65%

72%

73%

Q. In general, what do you use social media tools for professionally? Base: Communications professionals (n=590)

The top three reasons for using social media still apply as they did in 2009.

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Uses for Social Media Among Consumers

Monitoring talk about my business or industry where I work

Meeting new people

Keeping in touch with business col-leagues




Reading about topics of personal interest to me

Entertainment

Keeping in touch with friends or family

13%

15%

29%

35%

41%

50%

51%

64%

80%

While the 2009 study examined personal and professional uses separately, keeping in touch and entertainment are still on top.

Q. In general, for what do you use social media tools? Base: Consumers (n=1309)

10

I completely understand social media and use it to its full po-

tential

I somewhat understand social media, but I do feel I could be

using it in better ways

I don't feel I understand the best ways to use social media

I don't understand social media

14%

72%

13%

1%

23%

53%

19%

1%

Communications professionals Consumers

Understanding of Social Media

Q. Which of the following best describes you? Base: Communication Professionals (n=590), Consumers (n=1039)

As in the 2009 study, there is a knowledge gap evident among both consumers and communications professionals about how to maximize their social media presence.

More than three quarters from each group at least somewhat understand social media.

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Stakeholders find honest, balanced

reviews online that they would not have found

otherwise

Stakeholders find corporate-initiated or sponsored blogs self-

serving and not credible

48% AGREE

ONLY 31% AGREE

Credibility of Social Media Among Communications

Professionals

Q. Please indicate the extent to which you agree with the following statements: Base: Communications professionals (n=590)

In 2009, 49% of communications professionals agreed that corporate initiated blogs are self-serving and not believable. This number has decreased substantially in 2011 (31%).

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I find honest, balanced reviews online that they would not have found otherwise

60% AGREE

I find the information on social media sites more credible than in-formation from friends or family or

others through word of mouth

I find the information on social media sites more credible than in-

formation found on corporate websites


formation found in advertising

23%

36%

46%

Social media credibility among consumers

Proportion of consumers who agree that…

Q. Please indicate the extent to which you agree with the following statement s: Base: Consumers (n=1039)

57% AGREE

Corporate-initiated or

sponsored blogs self-serving and

are not a believable source

of information

This year, nearly double the number of consumers indicate that they find honest, balanced reviews online when compared to the 2009 results (60% vs. 34%).

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Social Media: Shaping Opinions

Reading a review of a product written by a private blogger changes stake-

holders' minds when considering purchasing some form of product or

service

Stakeholders I communicate with say reading about a company or its prod-ucts and services in the social media space has affected their opinion in a

negative way


positive way

58%

32%

53%

Reading a review of a product written by a private blogger

can affect whether I will con-sider purchasing some form of

product or service

In general, reading about a product or service in the social

media space has made me feel more negative about that

product or service


media space has made me feel more positive about that

product or service

55%

22%

43%

Proportion of professionals who agree that…


Communication professionals tend to put more stock in the persuasive power of social media than do consumers. This is consistent with the 2009 findings

Q. Please indicate the extent to which you agree with the following statement s: Base: Communications professionals (n=590), Consumers (n=1039) The above indicates percent of those who agree.

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The Influence of Social Media On Consumer Purchases

Which stocks to buy

Buying RRSP's

Making financial decisions

Which politician to vote for

Hiring a plumber

Buying a new car

Which music to buy

Which books to read

13%

15%

16%

25%

41%

42%

54%

64%

Q. I would trust social media to help me make decisions on… Base: Consumers (n=1039)

Smaller purchasing decisions are the most readily influenced by social media. Financial decisions are less influenced by social media.

I would trust social media to help me make decisions on…

Stakeholders I communicate with find companies that are engaged in social

media have a better reputation

Stakeholders I communicate with are more loyal to a company that they can deal with

on social media outlets

Companies that are engaged in social media have a better reputation

I am more loyal to a company I can deal with on social media outlets

11%

11%

31%

37%

22%

27%

38%

33%

44%

35%

27%

26%

22%

27%

5%

5%

DISAGREE NEITHER AGREE NOR DISAGREE AGREE N/A

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Social Media: Loyalty and Reputation

Consumers


Q. Please indicate the extent to which you would agree with the following statements… Base: Communications professionals (n=590), Consumers (n=1039).

The findings in 2011 concerning reputation and loyalty are nearly identical to the findings in 2009. Consumer opinion has remained virtually unchanged. What is also unchanged is the tendency of communication professionals to overestimate the value of a social media presence.

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Social media: Trust and Transparency

Stakeholders I communicate with place more trust in an organization that is en-

gaged in social media compared to those that are not

Stakeholders I communicate with feel organizations engaged in social media

are acting in a transparent manner

I place more trust in an organization that is engaged in social media compared to

those that are not

Organizations engaged in social media are acting in a transparent manner

15%

8%

37%

35%

25%

20%

35%

35%

37%

52%

25%

26%

23%

20%

3%

5%

NEITHER AGREE NOR DISAGREE AGREE N/A #REF!

Consumers


Q. Please indicate the extent to which you would agree with the following statements… Base: Communications professionals (n=590), Consumers (n=1039.

Although the proportions differ from 2009, the same patterns emerge in 2011; communications professionals believe social media has more impact than do consumers.

Key findings for communications professionals using social media

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My legal team supports our use of social media tools

Other departments in my orga-nization, outside of mine, pro-

duce online content

My senior management team supports me / my organization us-ing social media tools as part of

our communications / investor re-lations strategy

38%

57%

81%

Organizational Support for Social Media

Yes32%

No64%

Not sure4%

Q. Does your organization have an employee or team of employees dedicated entirely to social media (i.e. a community manager)? (n=590)Q. Please indicate the extent to which you would agree with the following statements… Base: Communications professionals (n=590),

Does your organization have an employee(s) dedicated to social media?

Proportion of communications professionals who agree…

In 2009, only 57% reported that senior management supported the use of social media – this number has increased dramatically in 2011 to 81%.

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Other

Myself (as owner)

Management

Media (general mentions)

Investor Relations

I.T./ Web

Sales

Customer Service

Marketing

Corporate Communica-tions/PR

6%

1%

1%

1%

3%

3%

5%

9%

41%

73%

Social Media Objectives

No, we have no ob-jectives we are try-

ing to meet

We have some ob-jectives we are hop-ing to meet, but they

are not formal

Yes, we have for-mal but not mea-surable objectives

we are trying to meet

Yes, we have for-mal, measurable ob-jectives we are try-

ing to meet

17%

42%

9%

22%

Q. Which departments have responsibility for social media at your organization? Base: Communications professionals (n=590)

The number of organizations with formal objectives has increased from 2009 (31% vs. 26%), and the number of organizations with no objectives has declined substantially (31% in 2009 vs. 17% in 2011).

Which Departments?

Q. Do you set formal, measureable objectives related to what you want to accomplish with social media ? Base: Communications professionals (n=590)

Formal Objectives:31%

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Social Media Campaign Objectives

Percent who

identify objective

Visibility 73%

Awareness 70%

Message delivery 59%

Visits 47%

Dialogue and engagement with stakeholders 45%

Generate dialogue / comments 41%

Relationships with stakeholders 41%

Obtain feedback 41%

Friends, followers etc. 39%

Using, sharing, pass-a-long of content 38%

Protect and manage reputation 37%

Establish influence 36%

Volume 28%

Embedding of interactive content 18%

Lead conversion/sales 18%

Q. How would you characterize your social media campaign objectives? Base: Communications Professionals (n=590)Q. How do you measure against those objectives? (n=590) (The above does not show a complete list)

How do we measure against objectives? Percent

We look at traffic counts (number of posts, comments, trackbacks, pings, inbound links) where available 62%

We look at engagement 43%

We analyze the content 37%

We look at tone 35%

We look at rankings like Technorati, Alexa, Google 31%

We look at relevance and authority of the blogger and the content 27%

We look at the volume and velocity of message 24%

We look at the ratio of posts to comments (conversation index) 23%

We subscribe to a service 13%

We track and quantify the inter-connectedness and inter-relationships of those who are talking about us 10%

Like in 2009, campaign success is most commonly measured by traffic counts, however the engagement measure has risen dramatically (25% vs. 43%).

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I have demographic information on those bloggers

I know how inter-related / interconnected all of those who are talking about us are

I know the bloggers who talk about our organiza-tion the most

I know how visible, vocal, and popular those bloggers are

I know how influential those bloggers might be

26%

36%

40%

42%

44%

Blogging and Social Media

Q. Please indicate the extent to which you would agree with the following statements… Base: Communications professionals (n=590)

Communications professionals agree…

Relative to 2009, more communications professionals are following the blogosphere. Each statement saw a marked increase since 2009.

I know who our organization's key influencers / opinion leaders are online

I know precisely who our organization should be engaging as an online ambassador, advocate

I know what my organization's social media profile looks like over time, and in one time period compared to another

Generally, I know what else - related to my organization and sector - people are talking about

53%

48%

54%

72%

Social Media: Knowledge of Your Organization

There has been a dramatic increase in awareness of a company’s social media profile compared to 2009. Social media has seen a veritable explosion in the world of business over the past two years.


Q. Please indicate the extent to which you would agree with the following statements… Base: Communications professionals (n=590) 22

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Social media messaging

I know what messages concerning our organization are out there

I know whether or not that messaging is accurate / favourable / advocates our position

I know when and where our message is spreading and how fast it is changing

72%

70%

48%


In 2011, communications professionals are significantly more aware of the messages that circulate in social media. In particular, more than triple report that they know where their message is and how fast it is changing (22% vs. 72%)


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Yes30%

No55%

Not

sure14%

Q. Does your company have a budget devoted specifically to social media? Base: Communication professionals (n=590)Q. Do you expect your organization to have a larger or smaller budget to spend on social media next year? (n=177)

Double the proportion of organizations report a dedicated budget to social media in 2011 vs. 2009 (30% up from 15%).

Social media budget

Larger budget41%

Smaller budget2%

About the same44%

Not sure14%

Does your organization have a social media budget?

What will your budget look like next year?

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Yes56%

Yes, more than one20%

No20%

N/A5%

Does your organization have a Twitter account?

Twitter UsageTwitter has exploded in popularity since 2009. As a result questions were formulated to specifically address its prevalence among communication professionals.

What do you use Twitter for?

% Who Use Twitter for…

(n=443)

Broadcasting news and messages 87%

Re-tweeting / Re-sharing content 60%

Engaging stakeholders 59%

Reputation management 45%

Customer service 25%

Informing investors of disclosed information

7%

Q. Does your organization have a Twitter account? Base: Communication professionals (n=590)(The above is not a complete list)

26Q. Do you use social media tools, like Twitter, during your organization's live events? Base: Communications professionals (n=590)(The above is not a complete list)

Social media usage at events

What events do you use social media for?

% Who Use S.M. for…

(n=268)

Product Launches 45%

Company celebrations and parties 34%

Annual General Meeting 22%

Town Hall 21%

Events (general mention) 13%

Conferences 9%

Do you use social media for your organization events?

With the increase in social media’s popularity in the world of business, the 2011 Social Media survey included questions about its usage at corporate events.

Yes45%

No50%

N/A 5%

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Yes58%

No34%

N/A 8%

Multimedia Usage

Podcasts

Presentations/Slides

Audio clips

Graphics/infographics

Links

PDF documents

Logos

Videos

Photos

14%

33%

33%

44%

45%

56%

59%

83%

95%

Why not?Percent

RespondingN=198

Lack of resources 28%

Cost/ budget 21%

Lack of skills/ knowledge to produce multimedia 9%

Hasn't occurred to me 5%

Don't know how 5%

Don't have time to produce multimedia 5%

Assets don't get used by media 4%

Too difficult to produce multimedia 3%

Other 15%

What Types?

Q. Do you distribute multimedia assets (i.e. photos, video, audio clips) with news releases to engage online audiences? (n=590)

Do you distribute multimedia with news releases?

Photos and videos are the most common forms of multimedia that accompany news releases. Cost and lack of resources are the primary obstacles which prevent the inclusion of multimedia in releases.

N=344

Conclusions

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• Social Media is the “new normal”

• Has not replaced any channels – it’s simply another one

• PR practitioners are early adopters and consumers are following

• Those who are more engaged have more trust in it as a viable

channel

U.S. Results

PR Professionals vs. Consumers

Target groups were accessed via CNW contact lists and Leger’s online panel. Respondents completed a 10 - 15 minute online questionnaire from June 3 – June 7, 2011.

2

Findings from both target groups were analyzed together.Results can be considered accurate to within +/- 8.77% for communication professionals and +/-4.38% for consumer users, at the 95% confidence level.

3

Research Method

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Two target groups were invited to take the survey :• Sample of 125 American communication professionals who

use social media – 88% of all professionals• Sample of 501 American consumers who use social media –

74% of all online Americans

1

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Most Used SitesFor both communication professionals and consumers, Facebook is the most frequently used social media platform. Twitter and LinkedIn are more frequently used by communications professionals than they are by consumers

Q. Which of the following, if any, have you used professionally ? Base: Communication professionals (n= 1039)Q. Which of the following have you used? Base: Consumers (n= 590)

Communications Professionals Consumers

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Less often than once a

month

Once a month

A few times a month

Once a week A few times a week

Once a day More than once a day

2%2%6%4%

18%19%

49%

2%2%6%

2%

18%

9%

61%

Consumers

Communications professionals

Frequency of UseThe frequency with which consumers and communications professionals use social media tools is comparable, although there are proportionately more professionals who use it more than once a day.

Q. In general, how often would you say that you use social media as part of your professional role ? Base: Communications professionals (n=125)Q. How often would you say that you use social media applications? Base: Consumers (n= 501)

About seven in ten use social media once a day or more

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Uses for Social Media Among Communications Professionals

Engaging with investors


Meeting new people


Watching my competitors


Monitoring talk about my business





6%

14%

35%

45%

52%

58%

61%

62%

72%

79%

81%

Q. In general, what do you use social media tools for professionally? Base: Communications professionals (n=125)

The top three reasons for using social media are news and information related

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Uses for Social Media Among Consumers

Monitoring talk about my business or industry where I work

Keeping in touch with business col-leagues

Meeting new people




Reading about topics of personal interest to me

Entertainment

Keeping in touch with friends or family

18%

32%

35%

40%

53%

56%

56%

62%

85%

For consumers, keeping in touch and entertainment are top reasons to use social media.

Q. In general, for what do you use social media tools? Base: Consumers (n=501)

35

I completely understand social media and use it to its full potential

I somewhat understand social media, but I do feel I could be us-

ing it in better ways

I don't feel I understand the best ways to use social media

I don't understand social media

23%

63%

11%

1%

39%48%

10%1%

Communications professionals Consumers

Understanding of Social Media

Q. Which of the following best describes you? Base: Communication Professionals (n=125), Consumers (n=501)

Levels of social media understanding are extremely high among both groups. There is, however, a substantial number who feel that they could use social media more effectively.

More than three quarters from each group at least somewhat

understand social media.

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Stakeholders find honest, balanced

reviews online that they would not have found

otherwise

Stakeholders find corporate-initiated or sponsored blogs self-

serving and not credible

53% AGREE

ONLY 25% AGREE

Credibility of Social Media Among Communications

Professionals

Q. Please indicate the extent to which you agree with the following statements: Base: Communications professionals (n=125)

Half of communications professionals agree that balanced and honest reviews proliferate online, while only a quarter agree that corporate blogs are not believable sources of information.

37

I find honest, balanced reviews online that they would not have found otherwise

68% AGREE

I find the information on social media sites more credible than in-formation from friends or family or

others through word of mouth


formation found on corporate websites


formation found in advertising

33%

48%

52%

Social media credibility among consumers


Q. Please indicate the extent to which you agree with the following statement s: Base: Consumers (n=501)

54% AGREE

Corporate-initiated or sponsored blogs self-serving and are

not a believable source of

information

More than half of consumers agree that corporate blogs are self-serving, a finding which contrasts with common perceptions among communications professionals.

38

Social Media: Shaping Opinions

Reading a review of a product written by a private blogger changes stake-

holders' minds when considering purchasing some form of product or

service


negative way


positive way

57%

29%

55%

Reading a review of a product written by a private blogger

can affect whether I will con-sider purchasing some form of

product or service


media space has made me feel more negative about that

product or service


media space has made me feel more positive about that

product or service

62%

27%

56%

Proportion of professionals who agree that…


A majority agree that reviews in blogs have an effect on the decision to purchase a product, both among consumers and among communication professionals.

Q. Please indicate the extent to which you agree with the following statement s: Base: Communications professionals (n=125), Consumers (n=501) The above indicates percent of those who agree.

39

The Influence of Social Media On Consumer Purchases

Buying RRSP's

Which stocks to buy

Making financial decisions

Which politician to vote for

Hiring a plumber

Buying a new car

Which music to buy

Which books to read

23%

28%

30%

30%

47%

48%

55%

68%

Q. I would trust social media to help me make decisions on… Base: Consumers (n=501)

Smaller purchasing decisions are the most readily influenced by social media, as are some larger items. Financial decisions are less influenced by social media.

Stakeholders I communicate with find companies that are engaged in social

media have a better reputation

Stakeholders I communicate with are more loyal to a company that they can deal with

on social media outlets

Companies that are engaged in social media have a better reputation

I am more loyal to a company I can deal with on social media outlets

9%

16%

21%

30%

25%

25%

31%

30%

48%

40%

43%

37%

18%

19%

5%

3%

100%


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Social Media: Loyalty and Reputation

Consumers



Consumers are nearly as likely to disagree that they are more loyal to companies with a social media presence than they are to agree. Both groups agree that a social media presence improves a company’s reputation.

41

Social media: Trust and Transparency

Stakeholders I communicate with place more trust in an organization that is en-

gaged in social media compared to those that are not

Stakeholders I communicate with feel organizations engaged in social media

are acting in a transparent manner

I place more trust in an organization that is engaged in social media compared to

those that are not

Organizations engaged in social media are acting in a transparent manner

14%

13%

32%

27%

25%

19%

29%

31%

42%

48%

37%

38%

19%

20%

2%

4%

100%


Consumers



Consumers are sometimes more wary of companies on social media than communications professionals perceive them to be. A third of consumers disagree that they place more trust in a company that is engaged with social media.

Key findings for communications professionals using social media

42

43

My legal team supports our use of social media tools

Other departments in my orga-nization, outside of mine, pro-

duce online content

My senior management team supports me / my organization us-ing social media tools as part of

our communications / investor re-lations strategy

43%

59%

83%

Organizational Support for Social Media

Yes40%

No57%

Not sure3%

Q. Does your organization have an employee or team of employees dedicated entirely to social media (i.e. a community manager)? (n=125)Q. Please indicate the extent to which you would agree with the following statements… Base: Communications professionals (n=125),

Does your organization have an employee(s) dedicated to social media?

Proportion of communications professionals who agree…

Organizational support is strong, with more than eight in ten stating that their senior management team supports using social media as a communications strategy.

44

Other

Myself (as owner)

Media (general)

I.T. / Web

Management

Investor Relations

Customer Service

Sales

Marketing

Corporate Communica-tions/PR

2%

1%

2%

2%

2%

5%

9%

10%

53%

65%


No, we have no ob-jectives we are try-

ing to meet

We have some ob-jectives we are hop-ing to meet, but they

are not formal

Yes, we have for-mal but not mea-surable objectives

we are trying to meet

Yes, we have for-mal, measurable ob-jectives we are try-

ing to meet

15%

40%

10%

30%

Q. Which departments have responsibility for social media at your organization? Base: Communications professionals (n=125) “Don’t Know” not displayed

Four in ten communications professionals state that they have formal objectives, and the majority say that corporate communications and marketing divisions are responsible for meeting these objectives Which Departments?

Q. Do you set formal, measureable objectives related to what you want to accomplish with social media ? Base: Communications professionals (n=125)

Formal Objectives:40%

45


Social Media Campaign ObjectivesPercent who

identify objective

Visibility 79%

Awareness 78%

Visits 50%

Friends, followers etc. 50%







Obtain feedback 41%


Lead conversion/sales 34%

Volume 30%

Embedding of interactive content 23%

Q. How would you characterize your social media campaign objectives? Base: Communications Professionals (n=125)Q. How do you measure against those objectives? (n=125) (The above does not show a complete list)

How do we measure against objectives? Percent

We look at traffic counts (number of posts, comments, trackbacks, pings, inbound links) where available 62%



We look at tone 38%

We look at rankings like Technorati, Alexa, Google 36%

We look at relevance and authority of the blogger and the content 36%


We look at the ratio of posts to comments (conversation index) 23%

We track and quantify the inter-connectedness and inter-relationships of those who are talking about us 17%

Campaign success is most commonly measured by traffic counts and engagement.

46

I have demographic information on those bloggers

I know how inter-related / interconnected all of those who are talking about us are

I know the bloggers who talk about our organization the most

I know how influential those bloggers might be

I know how visible, vocal, and popular those bloggers are

31%

46%

50%

53%

54%

Blogging and Social Media



Communications professionals have a relatively high level of awareness of the influence of bloggers, and half know who is talking about their organization online.

I know precisely who our organization should be engaging as an online ambassador, advocate

I know what my organization's social media profile looks like over time, and in one time period compared to another

I know who our organization's key influencers / opinion leaders are online

Generally, I know what else - related to my organization and sector - people are talking about

56%

65%

66%

79%

Social Media: Knowledge of Your Organization

Communications professionals also have a strong knowledge of what information related to their industry and organization is circulating around social media.


Q. Please indicate the extent to which you would agree with the following statements… Base: Communications professionals (n=125) 47

48

Social media messaging

I know what messages concerning our organization are out there

I know whether or not that messaging is accurate / favourable / advocates our position

I know when and where our message is spreading and how fast it is changing

78%

76%

62%


Most communications professionals indicate that they have a good sense of the types of messages that circulate within social media networks about their organization.


Yes30%

No59%

Not sure10%

49Q. Does your company have a budget devoted specifically to social media? Base: Communication professionals (n=125)Q. Do you expect your organization to have a larger or smaller budget to spend on social media next year? (n=38)

Among those organizations which budget for a social media portfolio, communications professionals typically expect more funding for this field next year. That being said, more than half of organizations do not budget specifically for social media at all.

Social media budget

Larger budget42%

Smaller budget

3%

About the same42%

Not sure13%

Does your organization have a social media budget? What will your budget look like next year?

50

Yes66%


No17%

N/A2%

Does your organization have a Twitter account?

Twitter UsageMore than half of communications organizations have a Twitter account. Predictably, broadcasting news and messages and re-sharing content are the primary functions of these accounts.

What do you use Twitter for?% Who Use Twitter for…

(n=102)

Broadcasting news and messages 93%

Re-tweeting / Re-sharing content 72%

Reputation management 54%

Engaging stakeholders 46%

Customer service 29%


6%

Q. Does your organization have a Twitter account? Base: Communication professionals (n=125)(The above is not a complete list)

51Q. Do you use social media tools, like Twitter, during your organization's live events?

Base: Communications professionals (n=125) (The above is not a complete list)

Social media usage at events

What events do you use social media for?

% Who Use S.M. for…

(n=66)

Product Launches 53%

Company celebrations and parties 47%

Annual General Meeting 15%

Town Hall 9%

Events (general mention) 8%

Conferences 8%

Seminars 8%

Do you use social media for your organization’s events?

More than half of communication professionals use Twitter during their organization’s events. Product launches are among the events where Twitter is most commonly used.

Yes55%

No39%

N/A 6%

52

Yes61%No

29%

N/A 10%

Multimedia Usage

Podcasts


Audio clips

PDF documents


Links

Logos

Videos

Photos

18%

28%

29%

46%

47%

51%

66%

76%

95%

Why not?Percent

Responding(n=36)

Cost / Budget 28%

Lack of resources 25%

Hasn't occurred to me 8%

Don't have time to produce multimedia 8%

Assets don't get used by media 5%

Lack of skills / knowledge to produce multimedia 5%

Too difficult to produce multimedia 3%

Other 11%

What Types? (n=76)

Q. Do you distribute multimedia assets (i.e. photos, video, audio clips) with news releases to engage online audiences? (n=125)

Do you distribute multimedia with news releases?

Photos and videos are the most common forms of multimedia that accompany news releases. Cost and lack of resources are the primary obstacles which prevent the inclusion of multimedia in releases.

Investor Relations

(Canada & US)

Background

54

Questions to be Answered:

• What are investor relations professionals’ perceptions about the use of social media and what are their / their companies’ stake in it? How is it changing/growing? Are they on the right track with their audience?

• How do financial industry professionals use social media to gather information about the companies they follow/invest in/advise others to invest in? Do they trust it? Or would they rather stick with traditional disclosure pieces?

Target groups were accessed via CNW contact lists and Leger’s online panel Respondents completed a 10 – 15 minute online questionnaire from April 19 – May 9, 2011.

2

Those who said they did not use social media for business were screened out from the balance of the survey. Findings from both target groups were analyzed together, and results of other recent surveys on social media usage in the financial industry were considered for context.

3

Research Method

55

Two target groups were invited to take the survey – who responded?• sample of 61 Canadian and U.S. financial industry

professionals• - sample of 99 Canadian and U.S. investor relations

professionals

1

References

56

The Use of Social Media by European Investment Professionals, a joint survey by Deutsche EuroShop AG and DVFA, the society of investment professionals in Germany, April 2011. 74 investment professionals responded, including sell-side/buy-side analysts and asset managers.

2011 Financial Professionals Social Media Adoption Study by American Century Investments, Feb 2011. 303 respondents including advisors, brokers and RIAs.

Questionnaires were based on the 2009 Social Media Reality Check a joint study by Leger Marketing and CNW Group, August 2009

An Overview of Social Media usage among Investor Relations

& Financial Industry professionals

57

How many use social media?

Q: Do you ever use social media for business purposes? N=99 (IR professionals) N=58 (financial industry professionals)

Yes57%

No43%

Investor Relations: Do You Use Social Media For Business?

Yes36%

No64%

Financial Industry: Do You Use Social Media For Business?

In the U.S., half of financial industry professionals surveyed say they are participating regularly in social media.

Similarly in Europe, only half of those surveyed see social media as a channel for information distribution and dialogue, that they are likely to use.

58

Reasons for not using itConfidentiality

& Privacy (50%)

“We have been instructed not to use social media due to privacy

issues”

“Confidentiality is the key reason”

“It’s always about Privacy”

Policy, Control & Professionalism (50%)

“Accuracy of information is paramount – need to control the

information”

“It’s against company policy”

“I find it inappropriate and unprofessional”

Q: What is your biggest concern about using social media for business purposes? N=37, (financial industry professionals who don’t use social media for business)

Regulatory/compliance issues are the top concern for financial industry professionals in the U.S. while Europeans cite lack of relevance and reliability of information to be the key reason.

59

Who does use it?

Q: What industry/sector do you work in? N=56 (IR professionals) Q: Do you work on the buy-side or sell-side? N=21 (financial industry professionals)

Investor Relations Financial Industry

Other Environmental

TechnologyRetail

HealthcareAgriculture

Financial ServicesOil and Gas

Investor RelationsEnergy Sector

Mining

25%

4%

4%

4%

4%

4%

5%

7%

9%

14%

20%

Sell-side15/21

Both4/21

Prefer not to

answer1/21

Buy-side1/21

60

What do they use it for?

Q: For what professional reasons do you use social media? N=56 (IR professionals) N=21 (financial industry professionals)

Investor Relations Financial Industry







63%

61%

50%

48%

46%

43%

41%

38%

36%

34%

27%

Reasons for Using Social Media

#

Staying informed:Keeping up to date with industry peersReading expert commentary or insightsKeeping up to date with industry news

15

Networking:Prospecting or meeting new clientsSharing news with clientsEngaging with clients and investors

9

Competitive advantage:Getting customers feedbackWatching my competitors

7

61

How often do they use it?

Q: In general, how often would you say that you use social media applications as part of your professional role? N=56 (IR professionals) N=21 (financial industry professionals)

Once a day or more

Once a week or more

Less than once a week

38%

34%

27%

Financial Industry Professionals use it less often

• Almost half said once a week or more

• Another third said less than once a week

62

Where do they go?

Q: Which of these, if any, have you used in your professional life? Select all that apply. N=56 (IR professionals) N=21 (financial industry professionals)Q: Which financial aggregators and communities do you follow and use? Select all that apply. N=33 (IR professionals) N=7 (financial industry professionals)

Mainstream Financial

Facebook and LinkedIn are the sites most used for business among U.S. financial industry professionals

Top European sites are the business network platform Xing (49%) and LinkedIn (31%).

Social NetworkInvestor

Relations Professionals

Financial Industry

Professionals

Facebook 39% 13

LinkedIn 82% 10

Twitter 52% 6

Skype 32% 6

Wikipedia 48% 4

YouTube 57% 3

Blogs 41% 1

Social NetworkInvestor

Relations Professionals

Financial Industry

Professionals

Seeking Alpha 55% 2

StockTwits 36% -

Wikinvest 15% 2

Investor Village 12% -

Tip'd Finance News - 1

Value Investing News - 1

Seeking Alpha 55% 2

63

Are they actively monitoring?

Q: Do you monitor how the companies you follow are being discussed online and in social media? N=56 (IR professionals) N=21 (financial industry professionals)Q: Why are you monitoring companies in social media? Select all that apply. N= 32 (IR professionals) N=6 (financial industry professionals)

Why are you monitoring

companies?

Yes57%

No30%

N/A13%

Investor Relations Professionals

Financial Industry Professionals

Those who said Yes 6/21

Those who said No 15/21

Why are you monitoring

companies?

Customer support

Customer service

Environmental scanning

Community building

Competitive intelligence

Issues management

Impact on stock price

Reputation management

13%

16%

25%

38%

59%

63%

69%

78%

Reasons for monitoring #

• Get a feel for consumer sentiment about a company and its products and services 5

• Engage with company’s IR or PR spokespeople to assist with research or understanding

• See how a company fares compared to others in its industry

• Get a feel for a company’s corporate reputation

3

• Seek additional clarity about a company’s position on various matters

• Seek signs of impending success or trouble2

• Get a feel for consumer sentiment about a company and its products and services 5

64

Insights into Social Media usage

for Investor Relations

and Financial Industry professionals

65

Using Social Media to Conduct BusinessInvestor Relations Professionals

No, we have no objectives we are trying to meet

We have some objectives we are hoping to meet, but they are

not formal

Yes, we have formal but not measurable objectives we are

trying to meet

Yes, we have formal, measur-able objectives we are trying to

meet

23%

41%

9%

18%

Do You Have Measurable Objectives?

Q: Do you set any formal, measurable objectives related to what you want to accomplish with social media? And how would you describe the types of social media campaigns you undertake? N= 56 (IR professionals)

How Would You Describe The Types Of Social Media Campaigns You Undertake?

Pull (drive visitors online)

Marketing

Outreach to investors

Corporate Social Responsibility

Stakeholder relations

Outreach to analysts

Community building

Push (get bloggers to review)

Thought leadership

45%

36%

36%

25%

25%

21%

18%

16%

16%

66

Using Social Media to Conduct BusinessInvestor Relations Professionals

Q: How would you characterize your social media objectives? N= 56 (IR)Q: How do you measure against those objectives? N= 56 (IR)

How Would You Characterize Your Social Media Objectives? How Do You Measure Against Those Objectives?

Characterization

Percent Identified By

Investor Relations

Professionals

Visibility 66%

Awareness 64%



Find new investors 43%

Visits 39%


Obtain feedback 29%

Volume 27%


Improve share price and liquidity 27%




Characterization

Percent Identified By

Investor Relations

Professionals

We look at traffic counts (number of posts, comments, trackbacks, pings, inbound links) where available

50%



We look at rankings like Technorati, Alexa, Google

21%

We look at tone 21%

We look at relevance and authority of the blogger and the content

18%

We look at the ratio of posts to comments (conversation index)

13%


We look at whether average daily trading increases or decreases

9%

We look at share prices before and after a specific social media campaign

9%

67

Using Social Media to Conduct BusinessFinancial Industry Professionals

Q: Please indicate the extent to which you agree or disagree with the following statements. N=21 (financial industry professionals)

Agree “Use of social media can give me a competitive edge.”

“Use of social media can negatively impact the quality of my work.”

“Social media outlets are a wise use of my professional time.”

“In my industry, there is a clear benefit to using social media to conduct business.”

“Most financial industry firms are using social media to their advantage.”

“Social media has become indispensible in the way I conduct my business.”

Neutral

Disagree

68

Impact on Buying/Investment BehaviorInvestor Relations Professionals

Q: Please indicate the extent to which you agree or disagree with the following statements. N=56 (IR professionals)

...look on industry blogs to get opinions about a company or its products and services

...say reading a review of a product written by a private blogger changes their minds when considering purchasing

a product or service

...say reading about a company or its products and ser-vices in the social media space has affected their opinion

POSITIVELY

...find honest, balanced reviews of products and services online that they wouldn't have found otherwise

...say reading about a company or its products and ser-vices in the social media space has affected their opinion

NEGATIVELY

...find corporate-initiated or sponsored blogs self-serving and are not a believable source of information

5%

7%

4%

5%

13%

25%

11%

23%

21%

23%

30%

23%

59%

55%

45%

41%

29%

29%

5%

4%

9%

9%

9%

5%

20%

11%

22%

22%

20%

18%

DISAGREE NEITHER AGREE NOR DISAGREE AGREE N/A NOT SURE / PREFER NOT TO ANSWER

Stakeholders I communicate with…

69

Impact on Buying/Investment BehaviorFinancial Industry Professionals

Q: Please indicate the extent to which you agree or disagree with the following statements. N=21 (financial industry professionals)

“More IR professionals should be engaging audiences online and in social media.”

“I find corporate-initiated or sponsored blogs a useful source of information.”

“I find it useful when a company's IR person engages with me or others in a social media space.”

“I look on industry blogs to get opinions about a company or its products and services.”

“Reading about a company or its products and services in the social media space can impact my opinion about a company's valuation .”

“I find honest, balanced reviews of companies, products and services online that I wouldn't have found otherwise.”

“Engaging in social media is a dangerous move for public companies.”

Agree

Neutral

Disagree

Mostly Agree

70

Impact on Corporate ReputationInvestor Relations & Financial Industry Professionals

Q: Please indicate the extent to which you agree or disagree with the following statements. N=56 (IR professionals) N=21 (financial industry professionals)

...find companies that are engaged in social media have a better reputation

...are more loyal to a company that they can deal with on social media outlets

...place more trust in an organization that is engaged in social media compared to those that are not

18%

9%

16%

20%

30%

30%

34%

29%

25%

2%

2%

2%

27%

30%

27%


Stakeholders I communicate with…One third of financial

industry professionals also agree

71

Impact on Corporate ReputationInvestor Relations & Financial Industry Professionals

...feel organizations engaged in social media are acting in a transparent manner

...find their opinions on different companies are in-fluenced strongly by social media outlets

...have better relationships with companies that engage in social media

11%

16%

9%

21%

16%

29%

50%

39%

34%

2%

2%

2%

16%

27%

27%


Stakeholders I communicate with…

Q: Please indicate the extent to which you agree or disagree with the following statements. N=56 (IR professionals) N=21 (financial industry professionals)

One third of financial industry professionals

also agree

Almost half of financial industry professionals

also agree

72

Impact on ValuationInvestor Relations & Financial Industry Professionals

Q: Please indicate the extent to which you agree or disagree with the following statements. N=21 (financial industry professionals), N=56 (IR professionals).

I feel that activities and discussions in social media influence share

prices

I feel that activities and discussions in social media influence investment

decisions

13%

7%

16%

13%

64%

71%

7%

9%

DISAGREE AGREE N/A NOT SURE

Investor Relations

Professionals

Half of the Financial Industry Professionals

agree

73

Yes53%

No41%

n/a6%

Use of Multimedia ElementsInvestor Relations Professionals

Q: Do you distribute multimedia assets? N=56 (IR professionals)Q: Why types of multimedia do you provide? N=30 (IR professionals)

Podcasts

Audio clips


Links


Logos

Videos

PDF documents

Photos

20%

40%

43%

47%

63%

67%

73%

77%

87%

Do You Distribute Multimedia Assets? What Type?

74

Use of MultimediaFinancial Industry Professionals

Q: Please indicate the extent to which you agree or disagree with the following statements. N=21 (Financial industry professionals)

“The use of multimedia can help clarify my understanding of a company’s business.”

“I would like to see more companies use multimedia in their investor communications.”

“Multimedia captures my attention and draws me to news I might not otherwise read.”

“I have no use for multimedia elements in my work.”

“I use company-supplied multimedia in my reports to add visual interest.”

“I consider a company’s management team to be more credible when they use multimedia in the social media space.”

“I don’t have time to watch videos.”

Agree

Neutral

Disagree

75

Use of TwitterInvestor Relations Professionals

Yes52%


No30%

I'm not sure / I'd prefer not to answer

9%

Does Your Organization Have a Twitter Account?

Broadcasting news and messages

Retweeting / resharing content


Engaging stakeholders

Reputation management

Customer service

Other

71%

56%

50%

44%

29%

9%

6%

What Is It Used For?

Q: Does your organization have a Twitter account? N=56 (IR professionals).Q. What does your organization use Twitter for? N=34 (IR professionals whose organizations’ have Twitter) 76

Use of TwitterInvestor Relations Professionals

Yes20%No

71%

n/a9%

Do You Use Twitter During Live Events?

Q: Do you use social media tools, like Twitter, during your organization’s live events? N=56 (IR professionals)Q: What types of events do you use these social media tools for? N=11 (IR professionals who use Twitter)

What Type of Events?

Event

Live earnings call

Annual General Meeting

Company celebrations and parties

Product Launches

Conferences

Events (general mention)

Seminars (general mention)

News releases

Other

77

Social Media BudgetInvestor Relations Professionals

Yes23%

No64%

I'm not sure13%

Q: Does your organization have a budget devoted specifically to social media? N=56 (IR professionals)Q: How much more/less was the social media budget this year compared to last year? N=13 (IR professionals).

Does Your Organization Have A Budget For Social Media?

Those who said “More”9 / 13

Those

who

said “The same”3 / 13

“I'm not sure”1 / 13

More or less than last year?

78

Conclusions

79

Less professionals in the Financial Industry are using Social Media than we thought

• This trend will change as the use of Social Media is increasing

When FI Professionals DO use Social Media, they use it to gather information and stay informed

In addition, they show great interest in multimedia assets

IR Professionals also use Social Media to stay informed and gather information• It will become increasingly important for IR Professionals to use Social

Media as a tool to distribute information