SOCIAL MEDIA AND IR

In investor relations we rarely think of our job as that of a storyteller. However, storytelling is at the root of much of what we do in IR. The role of IR is to communicate key information about the company in a factual, clear and hopefully compelling way. No matter how fantastic the financial and operating results or how brilliant the strategy, if you are unable to effectively communicate this to your audience you will not get noticed. In the past few years, many companies have adopted video as part of their IR strategy. Video provides a communications medium that offers much more than can be achieved through standard IR communication tools such as news releases, slide decks or even website content. Video allows you to reach investors in an authentic and human way and to more effectively tell your company’s story. At ARC Resources we have been producing quarterly videos with management for over five years. During this time, our approach and the format of our videos have evolved. In this article I will share some of the lessons I learned along the way and some tips for creating successful IR videos.  

Creating Engaging Video Content

Rule number one in our videos at ARC is that they aren’t scripted. This has been a very deliberate choice, as scripting videos often takes away the human element and the ability to connect – which is the whole point of video! However, unscripted doesn’t mean that time and attention hasn’t been spent on creating content and building key messages. Here are few tips to get started:

• Use disclosure documents as your starting point – not your whole point. Video is a great way to move beyond the numbers and provide additional colour on your results. Although video messaging absolutely needs to align with disclosure documents, it should be doing something that disclosure documents cannot. As a viewer, I’m not really interested in hearing that your production was up 10%, I can read that in your release. I am, however, interested in why your production was up 10%. Video can also be an opportunity to address topics in your disclosure that may be complex and hard to explain in writing. While quarterly reporting is very backward looking, video provides the opportunity to be more forward looking and to discuss upcoming projects and plans.

• Know your audience: In the nearly five years that our team has been producing quarterly videos, not once have we created an Internet sensation, but not once has that been our objective. Each quarter, as we sit down to draft video content, we start by discussing the key themes and reoccurring questions that have come up in recent investor meetings. Additionally, we try to identify what elements of our story are not getting picked up by the investment community. Finally, we look outside ourselves at what topics currently matter in our industry. After considering all of these elements we add content to our videos that reaches beyond our own disclosure with the objective of creating content that is relevant and useful to our key audiences.

• Think about what makes a great story. We all know a good story has a beginning, middle and an ending, but it is amazing how often this simple structure is completely ignored in corporate content. Think back to elementary school and build your content sandwich. Every good story should have a promise in the beginning – the ‘let me tell you something’ moment. In a corporate video, this can be achieved with a device as simple as an onscreen question at the beginning. From there, everything else should build up to your punch line; otherwise called the ‘so what’ moment. Think about what you hope the audience goes away knowing from your video and ensure this take-away is clearly communicated in your content. Finally every good story needs conviction. The speaker needs to be passionate and authentic. It may seem like this has nothing to do with the content itself and everything to do with the speaker, but in fact the reverse is true. Craft your content to play to the speaker’s strengths and area of expertise.

Lights, Camera, ACTION!

When it comes to producing your video, here are a few considerations that will help make the process smoother in all respects.   

Project Management 101: As my husband, a former military man, always tells me, “proper planning prevents piss poor performance”. When it comes to creating video, think of the planning stage as giving people the tools they need to tell your company’s story in the best way possible. This can include a content outline, time to rehearse or discuss the content, information and statistics and even feedback. Early on in the process, plan all the elements, such as when and where filming will take place, and what to wear. With all the logistics arranged, everyone can focus on creating great content and preparing for a solid performance.

The Devils in the Details: For fear of outing myself as the Type A crazy that I am, I considered omitting this section. But then I realized that it was way too important to leave out. When filming, the small details – such as which chairs are being used and what plants are in the background – really matter. Work with your video crew to discuss lighting and ambiance before filming. Be clear about what you want and what you don’t want. For example, dramatic lighting or artsy framing is probably not appropriate while the CEO is discussing an upcoming construction project. When choosing your location pay attention to background noise. Is there a white noise box in the room or construction going on across the street? On the day of filming our team reviews all details, such as lighting, sound, and framing, with the video crew about 30 minutes before management is expected to arrive. This way we have ample time to make any necessary changes. Once management is seated in front of the camera, everything is checked again. Although I have absolute trust in our video crew, at the end of the day it is my responsibility if the final product isn’t the best it can be, and if I was the person on camera I would want to know that someone had done this check for me.

Creating an Environment of Trust: It is important to understand that for most people, being on camera is far out of their comfort zone. Whatever you can do to help make the process less painful will greatly enhance the overall success of the video and management’s willingness to do it again. Creating an environment of trust begins with the planning stage. The more prepared someone feels prior to filming, the more relaxed and natural he or she will be once the camera starts rolling. During filming, small considerations make a big impact, such as introducing the camera crew and limiting the number of people in the room to only those who are essential to the process. We always aim for maximum efficiency during filming, but taking a moment for a bit of small talk and a laugh helps relax everyone before the camera starts rolling. Finally, in the editing room, in addition to tying in all numbers and facts, I again put myself in the shoes of the speakers and am sure to edit out anything that might be cause for embarrassment. 

At ARC, we have received great feedback on our videos from research analysts, investors and staff alike. In our experience, video has been an extremely effective way to tell our corporate story, and is now a core component of our IR strategy. Our management team has given countless hours to preparation and filming, and our IR team respects the time of our executives and works to ensure that the content, planning and filming are all well thought out and executed. These elements have helped make our videos a success.

Megan Hjulfors is Investor Relations Advisor at ARC Resouces Ltd. in Calgary.