Direct reach – a threat or opportunity?

Lately, we have witnessed a considerable increase in the number of IR activities, telcos and earnings videos carried out by companies themselves.

To support this development, a strong shift towards direct reach has been experienced in the last few years: 80% of IROs are, after the pandemic, likely to reach out to investors directly. Investors have reacted positively: 79% are much more likely to respond to direct approaches from companies. Also, seems that investors are more satisfied with meetings arranged directly, with 93% satisfaction rate (through broker, 49% highly satisfied). (IR Magazine 2022)

Let that sink in for a moment (…I know, this term has now been now taken by Elon Musk…).

So, how to navigate in this new environment?

Following the implications of Mifid II, Covid-19 and other recent changes in the operating environment, it now seems that more and more IR work is done inside companies, by IRO’s and their teams. Sometimes by using different types of targeting tools.

And, this has led to….

From an investor’s point of view, this has led to an increasing number of IR related pieces of information, which are flowing around on the capital markets every day. Let’s admit this. We are all living in the information overflow coming from various sources, whether it was an email or conference invitation.

No wonder some of us are thinking about, despite of all channels currently in use, how to stand out in the competition for reaching the right eyeballs of investors?

The answer is….  Transparency. The answer is IR Freedom.

Stay tuned.

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