While some companies like Shell and AstraZeneca are succeeding on social media, a new study finds that two-thirds of FTSE 100 companies are failing to effectively engage on platforms, such as Facebook, Twitter and YouTube. In fact, the study finds that Linkedin might be the the most underutilized social media platform among the firms.
Some 95 percent of the FTSE 100 companies have LinkedIn company pages, attracting a combined 2.6 million followers. However, less than a quarter of the FTSE 100 list any of their products or services on company pages, which are usually not actively managed – only 20 percent posted a status update in the 30 days prior to the study.
That’s significant for public companies, because the Social Media in the City study also finds a correlation between higher social media performance and positive movements in stock price among companies listed on the British stock exchange.
The report was produced by Sociagility and Public Relations Consultants Association (PRCA) based on research in November using a proprietary methodology known as PRINT™, which measures five key attributes of social media performance: popularity, receptiveness, interaction, network reach and trust.
Among the report’s other findings:
- The highest performing FTSE sector is pharmaceuticals & biotechnology, followed by retailers;
- The insurance sector scores well below the FTSE 100 average and only one of the companies, Aviva, even makes the SPI top 30;
- There are some high-scoring industries that might come as a surprise, such as mining firm Vedanta and computer chip maker ARM Holdings, who hold spots in the top 10, as well as chip-manufacturer ARM Holdings and BAE Systems;
- Only 20 percent of FTSE 100 are actively using LinkedIn company pages to engage.
The study’s most siginificant finding is the relationship between an FTSE 100 company’s level of social media engagement on stock price. Previous Sociagility studies have shown similarly close correlations between PRINT™ scores and measures of brand value and growth, as well as market share.
According to co-author of the report and Sociagility principal, Tony Burgess-Webb, the report indicates that good corporate social media performance is a competitive advantage:
“Social media are playing an increasingly important part in the daily struggle for stakeholders’ confidence and support. How well a company engages is therefore a competitive issue internationally – both as a risk to be managed and an opportunity to gain advantage. This is as important for the C-suite as it is for corporate communications professionals.”
Readers, do you believe that a company’s strong social media presence relates to a healthy stock price?
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