Abu DhabiBeijingBerlinBrusselsDallasDubaiFrankfurtHong Kong
JohannesburgLondonMilanMunichNew YorkParisRomeSan Francisco
Sao PauloShanghaiSingaporeStockholmViennaWashington, D.C.
2014 Analyst and Investor Survey: Trends in the Use of Digital & Social Media by the Investment Community
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Executive summaryInvestors’ consumption of digital media for investment research continues to rise1
Online engagement is increasingly driving investment decisions2
59%Read blogs for
work
+730%
Use micro-blogging services for work
26%Use social networks for
work
+2
58%Investigated an
issue after reading a blog…
+127%
…then made an investment decision based
on a mosaic constructed around that blog post
+3
Twitter influence continues to expand, but its growth may be under-reported due to recent inclusion on other platforms, like Bloomberg, which also jumped in importance
31 in 7
Investors made an investment decision based
on a mosaic constructed around a tweet
36%Investors in US who said real-time
subscription services became more important this year
Ranking of various information sources
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2010 2012 2014
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2.0 2.0 1.9
3.03.4
3.3
3.93.53.7 3.6 3.9
4.1
4.5 4.5
5.0 5.15.3
6.15.8 5.8
Information direct from companies
Real time subscription information sources
Analyst research*
Primary market research
Online business media
Print business media
Digital media
Importance of information sourcesInformation direct from companies remained the highest ranked resource for investment decisions (based on a scale from 1 to 7)Top information sources
Q4. Please rank the following information sources by how much they influence your investment decisions or recommendations?* Indicates sell side and industry analyst research for buy-side analysts; indicates industry analyst research for sell-side analysts
Top Information Sources in 2014
Average Rank
Information direct from companies
1.9
Real time subscription information sources
3.3
Analyst research* 3.5
Primary market research 3.9
Online business media 4.5
Print business media 5.3
Digital media 5.8
Trends by year*
Reported by mean of rankings
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Importance of information sources(Average rank, lower figures mean they are more influential)
USA Europe Asia
Q4. Please rank the following information sources by how much they influence your investment decisions or recommendations?* Indicates sell side and industry analyst research for buy-side analysts; indicates industry analyst research for sell-side analysts
1.8
3.5
3.3
3.0
5.1
5.5
5.9
2.1
4.0
3.3
3.3
4.6
5.0
5.7
20122014
2.0
3.0
4.7
3.3
4.2
5.0
5.9
2.0
3.1
4.1
3.4
4.6
5.0
5.8
2.0
3.0
4.1
3.8
4.0
4.9
6.3
201020122014
Information direct from companies
Real time subscription information sources
Primary market research
Analyst research*
Online business media
Print business media
Digital media
1.8
3.3
3.4
3.8
4.4
5.5
5.8
2.1
3.4
3.4
3.5
4.4
5.3
5.8
2.1
3.0
3.3
4.0
4.3
5.2
6.0
201020122014
Reported by mean of rankings
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2010 2012 2014
1
2
3
4
5
6
7
2.4 2.5 2.4
3.23.4
3.5 3.43.5
4.1
3.53.8
3.8
5.3 5.4 5.4
6.76.9
6.5
Direct interaction with management
Conference calls, we-bcasts
Regulatory filings
Company news releases
Investor / corporate presentation
Company website
Company digital media presence
Information from companiesFace time with management remained the highest ranked resource made available by companies themselves (Based on a scale from 1 to 7)
Q5. Regarding information direct from companies, please rank the following by how much they influence your investment decisions or recommendations?
Top direct from company information sourcesTrends by year*Top Company
Information Sources in 2014
Average Rank
Direct interaction with management 2.4Conference calls, webcasts 3.4
Regulatory filings 3.4
Company news releases 3.5Investor / corporate presentation 3.8
Company website 5.4Company digital/social media presence 6.5 Reported by mean of
rankings
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Rating information from companies(Average rank, lower figures mean they are more influential)
USA Europe Asia
Q5. Regarding information direct from companies, please rank the following by how much they influence your investment decisions or recommendations?
Reported by mean of rankings
1.6
3.3
3.6
3.7
4
5.7
6.6
2.5
3.8
3.6
4.2
4.3
5.1
6.520122014
Direct interaction with management
Conference calls, webcasts
Regulatory filings
Company news releases
Investor / corporate presentation
Company website
Company digital media presence
2.6
3.3
3.4
3.5
3.9
5.5
6.3
2.7
3.2
3.3
4
3.7
5.6
7.1
2.5
2.9
3.2
3.7
3.5
5.5
6.6201020122014
2.6
3.5
3.4
3.4
3.5
5.2
6.7
2.4
3.6
3.6
4
3.6
5.4
7
2.3
3.5
3.6
3.2
3.5
5.2
6.7
201020122014
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Social NetworksTraditional business media – Print,
Radio, TV
0.13 0.110.2
0.060.21
0.11
Real time subscription services Blogs Traditional business media - Online
0.420.28 0.290.36 0.29 0.2
0.530.4 0.4
Changing importance of information sourcesReal-time subscription services and blogs are the media platforms that grew the most in importance according to investors
Q6. {MULTIPLE RESPONSE] Which, if any, of the following information sources have become more important to you in your job in the past year?
Percent saying each technology has become more important this year
Europe USA Asia
Europe USA Asia Europe USA Asia
Europe USA Asia Europe USA Asia
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Syndicated services see a rise in value
Q9. (OPEN-ENDED) Please list which digital media sources provide you with the most valuable information for your work? Please list these in order of importance to you.
Online-only Outlets (Seeking Alpha, Re/code, etc.)
Syndicated Subscription Services (Bloomberg, Reuters, etc.)
Traditional Media's Online Properties (WSJ.com, NYTimes.com, etc.)
Social Media (LinkedIn, Facebook, Twitter, etc.)
40%
35%
16%
9%
48%
22%
18%
12% 20122014
Impact of digital media
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23%
47%
21%
4% 6%
Yes, definitelyYes, probablyNo, probably notNo, definitely notUnsure
Most investors see the role of digital media increasingNearly three in four investors believe that the role of digital media will play an increasing role in future investment decisions; Investors in Asia believe this most strongly
Q12. Do you think that digital media such as blogs, micro-blogging services or social networking sites will play an increasingly important role in investment decisions in the future?
70% Increasing Role
Europe
USA Asia
64% 70% 79%
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2010 2012 20140%
10%
20%
30%
40%
50%
60%
70%
52%57% 58%
11%
28%
29%31% 29%28%
14% 23%25%
BlogsLinear (Blogs)Linear (Blogs)Micro-blogging services
+2
USA
Europe
Asia
67%
62%
52%54%
54%55%
29%
22%
26%25%
35%44%
30%
33%
21%19%
39%37%
26%
14%
25%21%
25%44%
Digital media driving issue investigationDigital media sources remain a key information source, as investors are proactively following up on leads initially found online
Q10. Have you ever read any information posted on a blog, micro-blogging service or social networking site that has prompted you to investigate an issue further for your work?
2014 2012
Blogs
Message boards
Social networking sites
Micro-blogging services
Information source prompting further investigation
Information source by year Information source in 2014 by region
+1
-1+1
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USA
Europe
Asia
28%
24%
25%22%
28%28%
10%4%
12%14%
23%24%
9%7%
9%9%
20%19%
4%4%
7%7%
15%21%2010 2012 20140%
5%
10%
15%
20%
25%
30%
18%
24%27%
4%
12%14%
5%
10%11%
2%
9% 7%
BlogsLinear (Blogs)Linear (Blogs)Micro-blog-ging servicesMessage boards
Digital media driving investment decisionsNearly one-quarter of Asian investors made an investment decision after consulting a micro-blog, doubling the frequency of other regions
Blogs
Message boards
Social networking sites
Micro-blogging services
Information source prompting investment decision
Information source by year
Q11. Have you ever made an investment decision or a recommendation after initially sourcing information from a blog, micro-blogging service or social networking site, which then led you to conduct additional research?
2014 2012
Information source in 2014 by region
+3
-2
+2+1
Appendix: approach and participants’ profiles
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Digital media and investment decisions
Quantitative research with buy-side investors and sell-side analysts across the U.S., Europe and Asia, designed to understand usage of digital media in the investment process.
Online data collected between October 15 and November 1, 2013. Invitations were sent to individuals from a subscription database, in USA,
Europe or Asia. The following job titles were invited:― Buy side: Analyst, Portfolio Manager, Portfolio Manager / Analyst, Director of
Research, Research Associate― Sell side: Analyst, Director of Equity Research, Research Associate
Data presented in the 2014, 2012 and 2010 surveys have been weighted by country to allow accurate comparison.
The survey included a sample size of 472 investors and had a margin of error of 4.5%.
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1%1%
48%
Job role and type of investments
48% Sell-side 52% Buy-side
Q2. Do you describe yourself as a buy-side investor or a sell-side analyst?Q3. Which of the following best describes your role and the type of investments you are responsible for?
21%
11%
5%
2%11%
Mutual fundHedge fundPension fundInsurance companyOther buy-sideAnalyst / Researcher
Analyst / Researcher
Investment advisor / Manager
Other sell-side
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Industry sector
Q13. What is the primary industry sector you cover?
18%
13%
8%5%4%4%2%
8%4%
33%Technology / Media / Telecoms
Consumer
Financial EnergyManufacturing / Indus-try
Healthcare
Utilities Other sectorSpecific geography Generalist
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Market cap focus
Q14. What is your market cap focus? Please indicate which currency.
Small Cap - $250m up to $2bnMid Cap - $2bn up to $10bnLarge Cap - $10bn up to $100bnOther currencyNot specified
13%
30%
27%
7%
24%
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Region
40%
40%
20%
USEUAsia
Q1. Where is your usual place of work?
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Age
Q15. Which age band do you fit into?
20-2930-3940-4950+Refused
3%21%
29%27%
20%
Jason Golz [email protected]+1 415 671 7676
Sparky Zivin [email protected]+1 202 393 7337
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