Digital media is the most powerful medium ever created because of its reach, the dynamic content that can be created and the data that is collected to help marketers target market you with various tools and ad types.
Before you jump in with both feet or spend large amounts of investor capital on digital marketing (second quarter of 2019, Facebook's net income amounted to 2.6 billion U.S. dollars), let’s get you up to speed.
The statistics can be misleading for equity marketing. Selling equity investments and selling consumer items is very different and has very different statistics. You could literally spend days trying to figure out all the different statistics, and you will find a statistic that supports your belief. That’s why Facebook makes $2.6 billion in 6 months!
The Canadian Securities Administration in 2017 conducted a research report to provide general information and understanding of investor behaviour and the estimated incidence of investment fraud in Canada. https://www.securities-administrators.ca/uploadedFiles/Investor_Tools/CSA07%20Investor%20Index%20Deck%20-%20Full%20Report%20-%2020171128.pdf
We have only taken a few slides from this excellent report, but it provides corporations an idea of what they need to consider when trying to develop an investor audience online.
I believe one of the biggest challenge’s micro and small-cap companies face is the market's perception of fraud in the market. I have heard to many times that the stock market is just legal gambling; this is not acceptable. The 1 out 10 deals are successful; this is not acceptable.
People don’t invest to lose money. We all know there are risks when we invest, but people need to believe that corporations have done everything in their power to be successful. That being said, investors need to start believing in management and support management. Building a company is not easy and requires unbelievable amounts of stamina and determination. The industry can no longer be “us and them” its needs to become a team effort between corporations and shareholders. I call this the Investomer… more to come on this idea.
Let’s look at the numbers:
Investor Experience with Investment Fraud:
One-in-five (18%) think they have been approached with a fraudulent investment opportunity.
Methods of Approach: The numbers tell you why you may not be getting the responses you hoped via your current marketing methods
Where Investors are Looking for Investment Information:
Corporations need to look at all forms of investor marketing to drive eyeballs and interest to their corporate brand. However in the late 90’s, when I was a broker, and still today, the best form of investor attraction is WORD-OF-MOUTH. The more people talking about you, the more people will be searching and learning about you.
The CSA report also looked at places where investors look or get information.
NOTE: Email was the highest tool for fraudulent introductions, and third on the list of “looking for information. FYI - 8020 is a website/blog for public corporations.
As you can see, when it comes to equity investing, regular digital media or social media marketing rules do not apply. When you are competing with millions of posts and sorting through millions of non-active investors, and add to that, investors worried about fraudulent activity, the online marketing world is a tough place to grow. You need to be patient, you need a call-to-action (a place to take them) and you need to establish investing triggers.
Those who are interested in investing will be looking (searching online) for hot sector opportunities, companies in industries they are knowledgeable about, and/or which types of investments provide the best return for the risk they are willing to assume. They will make investments when the understand when and why, and are they confidence in management.