April-2013-The U.S. Securities and Exchange Commission issued its approval for public companies to use social media sites such as Facebook and Twitter to disseminate market moving company announcements as long as investors are told in advance where to look.
“Most social media are perfectly suitable methods for communicating with investors, but not if the access is restricted or if investors don’t know that’s where they need to turn to get the latest news,” George Canellos, acting director of the SEC’s enforcement division, said in a statement.
The fair disclosure rule, or Regulation FD, has been a thorn to many companies that have long argued the case for use of social media as a modern means to communicate with and attract investors. With the SEC’s latest approval, public companies are no longer bound to simply repeating information previously announced via conventional means.
The issue officially came to the table after Netflix, Inc. (NFLX) CEO Reed Hastings in July reported monthly viewership results on his Facebook page rather than in an SEC filing or press release. While the SEC launched an investigation into the matter, the commission refrained from bringing an enforcement action against the company on the grounds that rules for social media use for company disclosures were unclear.
Under the new guidance, the SEC suggested that companies use Web sites and press releases to announce which social media outlets they will be using and give investors an opportunity to subscribe or join the appropriate sites.
MissionSMR (www.MissionSMR.com) specializes in helping publicly traded companies boost investor communications with a full array of Social Media Relations (SMR) services. Social media offers incredible dynamics that set it apart as a leading and preferred means of communication by increasing visibility, providing shareholder updates in real-time, and generating additional transparency.
Nearly five years ago, before most people even knew what it meant to tweet, the team at MissionSMR was already establishing the presence of its brands on social media. Today, together with 25 other brands, the investor communications firm has amassed an audience exceeding 1.8 million followers. Leveraging this vast network and its refined social media strategies, MissionSMR is able to help any publicly traded company execute a powerful symphony of progressive, forward-thinking social media programs.
A strong social media-based investor relations communication strategy is able to create virtually endless exposure if executed correctly and can be customizable according to the needs and desires of each company. Also, in addition to allowing for immediate communication between the company and its stakeholders, social media enables a level of continual interaction that had previously been possible.
With lightning speed reflective of today’s rapidly changing technological advances, social media has evolved as a powerful business tool. A strong social media-based communications strategy provides the company with access to a vast amount of investor information and offers a valuable tool to analyze and take advantage of changing communication trends.
Public companies have the responsibility of shifting with the times and providing information beyond an occasional press release and quarterly earnings call. In an age of immediate communication and convenience, it is important that companies recognize and meet investors’ needs for information.
Part of DreamTeamGroup (DTG), a consortium of investor-oriented brands, MissionSMR continues to employ its unique expansion strategy to reach an ever growing number of investors with valuable, time-sensitive content. In 2012, DTG’s partner branded sites received more than 20 million page views, with 3 million total unique visitors spending an average of 9 minutes per session. To view more information on last year’s Web traffic statistics, as well as overall social media growth, visit http://dtg.fm/2012-stats-release.
For more information on MissionSMR’s social media strategies, visit www.MissionSMR.com.
For a sneak peak of the upcoming social media relations portal DTG is creating, visit www.SocialMediaRelations.us.
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