Why Your Announcements and Media Releases Are Not Working
Sydney, July 7, 2014 AEST (ABN Newswire) - If you're relying on your Stock Exchange (ASX) announcements and your media releases to fully inform "the market" it isn't working.
ASX announcements perform a very important task - meeting your regulatory disclosure obligations. Media releases are vital to ensure your story is communicated to and covered by the media. But they alone aren't enough to communicate your information to the entire market.
"The market" is big. It's composed of well over a million global investment professionals that each pay up to $24,000 per year to access financial information through platforms like Bloomberg and Thomson Reuters. It includes 520,000 active Self Managed Superannuation Funds in Australia, controlling over $520 billion in assets.
There's also the tens of millions of international retail investors ; high net worth individuals buying securities through the OTC markets in the USA, the rapidly increasing numbers of middle class investors in China, in Brazil, in Russia, the Europeans attracted to Australian shares because of our economic record and relative political stability.
According to the ASX, in 2012 just under 50% of ASX shares by value were held offshore and this percentage is likely to increase as the economies of China, India and other nations grow. Companies that can access this massive pool of investors and funds will significantly improve their transactional liquidity, increase their share price and grow their market capitalisation.
Without outside help, ASX announcements and media releases simply don't reach a very significant proportion of "the market" - probably 90% plus, certainly well over 50%. They don't even reach all the Australian market.
Even when they do reach institutional investors using platforms like Bloomberg and Thomson Reuters they arrive in a format that makes them hard to notice and difficult to read and share.
If you want to induce people to invest, you have to gain their attention, make it easy for them to read or see your story and convince them of the value you offer. ASX announcements and media releases won't do this - they perform their specialized tasks very well, but they aren't up to the equally specialized task of attracting and informing investors and persuading them to invest in you.
Listed companies in the USA, in Canada, in the UK, in Europe have recognized and solved this problem. They use a secondary distribution channel for two key reasons - to fully meet their disclosure obligations by making sure their announcements reach as much of "the market" as possible and to communicate directly with "the market" without alteration, interpretation or truncation of their message by a third party.
In the USA, every single company on the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ) uses a newswire for these purposes. In Australia listed companies are slowly coming to the realization that by using a local financial newswire with wide global reach they can access a much greater share of "the market" and dramatically increase the pool of investors prepared to invest in their company.
And by speaking to global investors in their own language - Chinese, Spanish, Portuguese, Indonesian - on the financial web sites and via the search engines they habitually use - they can distinguish themselves from their competitors and attract even more investors.
To view the full whitepaper, including diagrams, please visit:
http://www.abnnewswire.net/lnk/01IW8AKN
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