IR Trends: Centralisation and digitalisation on the rise

• IR is evolving rapidly with its increase in strategic importance.
• More companies are now focusing on building in-house IR functions.
• They are leveraging new communication channels to engage investors effectively.

 

Investor Relations (IR) has become increasingly crucial, especially over the past year, according to a recent industry report. This trend is particularly noticeable among smaller organisations. The strategic importance of IR continues to grow, reflecting its essential role in corporate communication and investor engagement.

1. Organisational responsibility and budget increases

As IR gains importance, organisational responsibility for this function has also expanded. Consequently, many companies have increased their IR budgets. More companies are bringing their IR functions in-house, reducing reliance on external providers. Larger organisations typically have dedicated IR teams, and this trend is becoming more common among mid-size firms as well.

2. Centralisation and coordination

The centralisation of IR functions within organisations is on the rise. Rather than spreading IR responsibilities across various departments, companies are now more likely to manage them through dedicated teams. This centralisation facilitates a more coordinated effort, bringing together multiple stakeholders across the business.

More companies are bringing their IR functions in-house.

3. The digitalisation of IR

Digitalisation is reshaping IR, with a growing focus on building a social media presence and leveraging video content. These areas are expected to see significant activity over the next year. Many companies have invested in social media, video, and website content over the past year, and the majority plan to continue these investments.

4. Adoption of new technologies

Companies are increasingly adopting new technologies for investor engagement. The trend towards enhancing social media presence is particularly strong, with most companies intending to build on their existing efforts. There is also a growing comfort level with using company profile pages on exchange/trading venues and digital newsletters.

5. Importance of owned media

Owned media has become increasingly important for delivering core messages to investors. Companies are exploring different channels to target both existing and potential investors, ensuring their messaging is effective and far-reaching.

Companies have invested in social media, video, and website content.

In summary

The role of IR is evolving rapidly, driven by increasing strategic importance, centralisation within organisations, and the adoption of digital technologies. Companies are focusing on building robust in-house IR functions and leveraging new communication channels to engage effectively with their investors.

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IR digitalisation: Top 3 online communication channels for investor relations