Transparent communications on the part of companies are becoming increasingly important for investors. Stakeholders expect companies to communicate current developments beyond standard reporting obligations and instead increasingly expect companies to answer their questions as needed. Strong investor communication is a key advantage for companies competing for capital.

One way to keep investors up to date is to regularly push business communications to them. But one-way messaging is no substitute for personal and direct dialogue. Complex information often needs a more personal, two-way channel to be explained. As such, investors can also express concerns and delve deeper into details that matter most to them.

As an alternative to mass messaging, investor relations managers should seek personal dialogue with their stakeholders. And yet, the larger an investor base is, the harder and more inefficient it is to maintain personal investor communications.

Small and Large Businesses Benefit from Webcast Technology

The next logical step is to invite investors to on-site conferences or conference calls, allowing companies to speak directly to a larger group of investors, creating more personalized two-way communications. The obvious disadvantage is, of course, that conferences are very complex to organize.

Large companies must internationalize their relationships to investors throughout the world. But even smaller companies face the challenge of targeting their investors in one central location in order to generate the necessary attention for their messaging. Most investors aren’t willing to trek to remote company locations for conferences. Telephone conferencing, while being more flexible, offers no visual elements such as slides and charts. Information is then hard to follow and even harder to remember.

Webcasts offer a smart and inexpensive alternative. Instead of voice-only telephone conferencing, webcasts stream the speaker as well as presentation slides. Video webcasting goes a step further, streaming the speaker actually giving his or her presentation. This efficient one-to-many approach, with a dialogue function, allows company representatives to personally address their investors – regardless of where they are at the time of broadcast. Viewers also have the opportunity to ask questions, offer comments, and receive answers from the company. As a result, webcasts offer both investors and journalists an easy and user-friendly way to follow the presentation of annual results. And in the end, the more straightforward access to press and analyst conferences is, the more people participate in your conference.

Flexibility Thanks to Webcasts on Demand

In addition to the live event, webcasts can also be offered on demand. Recorded webcasts are available after the event. Through these time and location-independent replays, companies also reach investors who were prevented from participating in the live event. On demand webcasts both offer a larger audience and are seen as a sign of transparent communications. Learn more about the current webcast trends in our blog article Bear These Trends in Mind for Webcasting Season.

The Easier the Access, the Larger the Audience

Webcasts are an intelligent way to communicate business messages to a large group of investors without the work and expense of an on-site conferences. The location-independent conference tool makes it easy for participants to virtually participate in the event the world over.

Both sides benefit: the lower the organizational effort and the more access to investor information is independent of location and time, the greater the potential target group and the scope for your message is.


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