FTSE 100 missing out on investor relations potential of social media

PRESS RELEASE

The slow adoption of social media channels by FTSE 100 companies is limiting their potential  influence on investors and ultimately share price, according to a new survey by online pr and social media agency Furlong PR.

Furlong PR analysed corporate websites for the FTSE 100 constituents in May 2010 and found that the majority – 78% are lacking in basic social media functions such as a blog or an RSS feed.

Only 12% have a blog linked to their site, an omission that Furlong contends at least halves (1) their potential website traffic and therefore restricts the information flow that can have a positive effect on share price.

Furlong cites the example of a Canadian copper mining company, TVI Pacific Inc (2), who began a social media investor relations programme in November 2009.  By January 2010, the company had increased website visits from 100 to 4000 a week, trading volume rose 55% and the share price doubled from $0.06 to $0.12.

FTSE 100 companies are more active when it comes to Twitter accounts – 23% having one, the lack of integration with an overall strategy suggests many may not know what to do with it.  Furlong says that in any case Twitter is not the most important social media channel for influencing share price.

“Journalists like Twitter (3), but they like RSS feeds even more, yet only 12% of the FTSE are offering information that way” says Ross Furlong CEO of Furlong PR. “And if you look at social networking,

LinkedIn is by far the most important channel, yet none are offering a link to a profile at all.”

The study found that the three top performing (4) FTSE 100 companies for combined blog and Twitter use are:

1)      Carnival 195.75/200

2)      WPP 191.03/200

3)      Reckitt Benckiser 185.01/200

The top three is no surprise when you consider which sector they are in says Furlong, “Carnival are in travel, for which having an online strategy is crucial, Reckitt Benckiser are FMCG – one of the most innovative sectors driving social media use while WPP’s Martin Sorrell is a believer in social media and has walked the walk with his corporate site”.

Furlong believes that the slow adoption of social media channels is down to three main factors – senior management unconvinced of its merits, measurable results proving that it has benefit and resources to devise and implement a strategy.

While some companies may also worry about losing control of information flow, Furlong suggests  the potential rewards are worth the risk. “So long as the strategy is well thought out and knitted together, social media is a tremendous opportunity for companies to demonstrate confidence and expertise in their sector. “

Furlong also warns of the dangers of sitting on your hands and not engaging with social media at all. “The problem is that if you’re not in there swinging the bat for your company, somebody else will do it for you and then you lose control of what’s being said.”

Furlong PR will be presenting the study results with accompanying case studies at 9 Adam St, WC2N 6AA in July. To book a free place, RSVP to ftse@furlongpr.com

(ends)

Furlong PR is an Online PR, Social Media and SEO specialist, established in 2003 by the former Publishing Director of Direct Marketing Week, Ross Furlong.

Our online pr activity is focussed on increasing reputation and inbound website enquiries/sales leads for customers through bespoke online content generation/link bait, marketed through social media channels and optimised for organic search.

We’re a tight association of journalists, technologists, marketing strategists and PR people operating from two main sites in Covent Garden and Soho and from virtual/home offices.

We have affiliate offices in 23 countries across Europe enabling companies to run EMEA PR campaigns from a UK base.

Appendix

(1)HubSpot research August 2009 showed that including a blog in your website increased traffic by 55% on average across 1550 US companies.

(2) TVI Pacific Inc, a Calgary based copper mining company began using social media in conjunction with the launch of their new website in mid-November 2009, they have reaped some interesting results thus far:

• Website visits are up from 100/mth to 4,000/mth;
• Average daily trading volume has increased 55%; and
• Their share price has risen from $0.06 prior to launch to $0.12.

(3) Broadgate Maitland research earlier this month suggested that almost four in ten financial journalists are now active on Twitter, with 70 per cent of those who use the platform finding it invaluable to keep abreast of developments in their field. Almost 60 per cent said they used Twitter to actively search for news.

(4)Calculated using http://websitegrader.com/