JEDDAH – The global investment community continues to look to companies as their primary source of information as they form their investment recommendations and decisions, Brunswick Group LLC, a global corporate and financial communications consultancy, said in its third online survey. The survey covered nearly 500 institutional investors and sell-side analysts in North America, Europe and Asia examining the changing impact of digital media and corporate communications on their investment recommendations and decisions since the initial benchmark set in 2009. It also noted that investor and analyst interaction with digital and social media has increased substantially and deeper online engagement is increasingly driving investment action, with Asian investors much more likely to use digital channels and make investment decisions accordingly than those based in Europe and North America. Commenting on the survey, Rachelle Spero, Partner at Brunswick, said: “Usage and engagement of digital and social media among those in the investment community is increasing rapidly. Of particular note for the business community, however, is that its influence on investment decisions continues to grow too; 56 percent of investment professionals in Europe consider the role of digital media to be growing in importance in the investment decision-making process. Additionally, a quarter of those surveyed said they have made an investment decision or recommendation after initially reading a blog. For Twitter, that figure is one in eight, up considerably from our last survey two years ago. This suggests now is the time for companies to adopt digital and social media for investor-related content distribution and influencer engagement.” “While investors and analysts are increasingly influenced by digital media when making investment decisions, companies and managers should be encouraged that the vast majority look to information direct from companies as the main building blocks of their investment rationales. The centerpiece of the information mosaic continues to rest with companies' own communications efforts,” he added. The survey highlighted too that 57 percent of participants selected “information direct from companies” as the source with most influence, while 85 percent ranked it among the top three sources of influence. Within this category, face time with management is by far the most important factor. Fourteen percent of participants included “digital and social media” among their top three most influential sources, up from 6 percent two years ago. Eighty six percent of investors said digital and social media sources have become more important this year, with investors in Asia appearing to lead the charge. The number of investment professionals who have investigated an issue after first learning about it on Twitter has nearly tripled since 2010 (30 percent in 2012 vs. 11 percent in 2010). A quarter of those surveyed said that they had made an investment decision or recommendation after initially reading a blog. For Twitter, that figure is one in eight, up three-fold from two years ago (12 percent in 2012 vs. 4 percent in 2010). Analyst research gained ground in 2012 jumping 15 points and rising to the second most influential source. Real time subscription information services, such as Bloomberg and Reuters, declined 10 points and fell to third position. — SG
