It’s an unavoidable truth that corporate media coverage impacts the stock market. News articles that either question or support a company’s credibility have the power to influence opinions and share prices.
With such inevitabilities, companies should make sure to include financial analysts in the target group of their media strategy. A study conducted by the FGS Global research team provides insights into the media habits of DAX40 analysts. It found five ways to make analyst-focused media relations work:
- Make use of both essential mediachannels and niche outlets. Of the analysts surveyed, 100% read newswires on a daily basis and 59% rely on trade press coverage, especially when investigating an entire industry.
- Set the tone and own the conversation. Analysts are open minded when using media for research. Take advantage of this by positioning executive management and your company as thought leaders. Find your niche with new, refreshing topics and set your own proactive agenda.
- Be mindful of intra-stakeholder dynamics. According to our study, journalists and analysts exchange information and opinions “all the time,” resulting in two key stakeholder groups that mutually influence perception of the company. Take this into account when interacting with either group.
- Manage expectations with calculated responses. Corporate credibility is influenced by the way companies handle issues covered by the media. By addressing critical scenarios proactively, you can prevent negative spirals. Similarly, positive media should be leveraged by initiating speaking opportunities.
- Use social media where it counts. The financial community largely doesn’t use social media in equity research, however online networks can be used to bolster corporate communications. Use well-positioned executives’ accounts to showcase expertise, engage in stakeholder-dialogue and shape corporate perception.