Insights

The importance of leveraging video content in investor communications

Communicating with investors can be an onerous task whereby continual communication, honesty and the providing comprehensive data to investors is necessary for a company’s success. We at R&A therefore understand that innovative forms of communication are needed to allow companies to improve and foster amiable relationships with their investors.

Leveraging video content in investor communications is an example of how companies can improve their investor relationships. This results from short form video content having the ability to rapidly provide investors with up-to-date information to ensure investors are equipped to make the best-informed decisions.

The increase in short form video content in investor relations is reflective of the digital age we live in today. The accessible nature of the internet and social media platforms have altered how people consume information. Similarly, companies have learnt to take advantage of the strengths of social media with authenticity and relatability allowing companies to freshly engage their audiences.

Short-form videos and multi-media platforms allow executives to reach investors through companies communicating their business aims transparently in innovative and creative ways. This innovation can be seen with companies creating social media video posts that allow for live interaction between investors and companies during earnings calls. A recent study from the London Stock Exchange shows this with, “66% of companies use social media to engage investors.”

Leveraging video content in this way has been argued to increase the trust and engagement between companies and their stakeholders. This leads to investors willingness to allocate more funds to companies. This is evident with a 2023 survey by Brunswick discovering, “81% of institutional investors have made an investment decision based on information they obtained from digital or social media content.”

Companies increased inclusion of short-form videos in investor relations could be due to the minimal cost’s videos need to be created. Short video content is also shown to be more memorable and assists in attracting younger clients. Forbes reiterates this through stating, “social media has become a key channel for investor research, especially for younger generations and retail investors.”

Traditional financial disclosure methods are still essential and required for companies to ensure transparency with investors occurs concerning their financial data. However, high quality short-form videos enable companies to further elaborate on their company’s performance, news and their financial data.

There are several formats’ companies can utilize when creating short-form video content to appeal to investors.  For example,

  • Recap videos can be utilized to show company performance metrics.
  •  CEO’s can communicate their brand aims and how to address investor priorities through making personal videos to post on social media.
  • Companies can utilize short form video content to summarize their company’s performance through infographics that show financial highlights, awards and milestones.
  • Short video content has also been shown to be useful in broadcasting presentations and discussions that stakeholders might not have been able to attend in person.

Overall, short-form video content has become essential for companies to have improved, successful investor relationships. Companies need equipped teams who are well versed in the current media landscape to provide their investors with continual updates to aid their decision making. R&A has skilled teams made of communication, design and animation professionals who collaborate to create engaging, memorable and relevant social media content.

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