Videos for Investor Relations Intro

In an era of hyper-transparency, with competitive pressure and geopolitical disruption, modern companies are going through a transformation: They are more global, informed, and dynamic than ever before.

These changes have a direct effect on investors, who are required to keep up with the pace of change. As a result, today’s corporations make every attempt to provide their stakeholders with a transparent, consistent, and up-to-date review of business activities and value. These measures sure seem to pay off: In fact, according to a Thomson Reuters Extel survey, the top 10 European companies with the best shareholder communications outperformed the market by 28.8% [1].

Between Communication and a Digital Transformation 

Nevertheless, excellent shareholder communication doesn’t just happen; It requires a fair share of dedication and commitment. Luckily, nowadays there are more tools in each company’s toolkit than ever before, and all have one thing in common: embracing digitalization.

Among these tools, video still stands out from the rest: Its versatile and interactive qualities qualify it as a highly-engaging, multipurpose tool that can support a host of enterprise use cases in various ways. Some common IR purposes for video are product videos, quarterly reports, AGMs, and change management. In the following white paper, we will introduce 4 types of videos for investor relations and explain how they contribute to efficient IR communication flow.

Product Videos

Investors have many options to track company-related data, news, and filings for traded companies. However, most still turn to company IR websites as their main source for company information. Moreover, according to Rivel Research, 77% of global institutional investors believe that a poorly designed or an incomplete website has an unfavorable effect on the investment interest in a company[2].

As the use of digital distribution channels for company communications is indispensable, a clear manner of conveying the company’s value is of crucial importance to any corporation, let alone a listed company. This effect can be achieved by incorporating rich media into a company’s website.

Rich media is a visual aid that characterizes the anatomy of a modern IR website. It allows enterprises to leave a stronger and more emotional impression in comparison with standard data blocks. Product videos are an integral part of rich media: They highlight a product’s main assets, provide bite-sized content that’s easy to take in, and resonate quickly and effortlessly with each viewer.

Tip: Since product videos are complementary and serve a primary purpose, it’s best to keep them short and simple. According to Hubspot, a video should never exceed two minutes. That may not seem like much but remember: First impression is everything. Pair your most compelling arguments with illustrative animation and squeeze the resulting combination into a beautiful yet small package to create a lasting impression.

Quarterly Reports

Quarterly reports are important meetings that affect the company’s share price. They’re usually accompanied by presentations featuring KPIs and other financial data and are routinely followed by Q&A sessions.

Video offers twofold leverage for quarterly report events: It can illustrate both qualitative and quantitative data while fostering communal success. It also allows remote participants to take an active part and even pose questions to the speaker during the Q&A session. Once the event is over, the recorded webcast session can be uploaded and viewed on-demand.

Tip: Create a VOD (Video on Demand) archive with all recorded quarterly reports sessions to illustrate a financial timeline. Make sure the uploaded video content is both mobile-friendly and compatible with all modern browsers. It’s also beneficial to use a reliable streaming service with adaptive streaming, as this will empower buffer-free video delivery regardless of network conditions.
Learn more ways to use videos for investor relations: download our free white paper:
Sources:
[1] https://www.shareholderapp.com/blog/stock-market-blog/investor-relations-proxy-access/
[2] https://www.bvb.ro/info/Rapoarte/Ghiduri/Guidebook%20Best%20Practices%20in%20IR.pdf