A recent study found that social media skills strongly correlate with your company’s performance in the stock market.
Sociagility analyzed the social media performance of the FTSE 100 and found, that for three weeks in November, the share prices of companies doing social media well were higher.
This study is rather preliminary and many more data points are required to determine whether or not this is a real correlation. However, the company believes this is a strong enough signal to get CEOs and other executives to adopt the medium.
“… the presence of any such statistically significant correlations between social media performance and share price movements should certainly embolden corporate communications directors to go to their CEOs and CFOs and say: ‘Look, this matters, and I need more resources to do it properly,'” the company stated.
As earlier reports have shown, social media adoption among CEOs and executives is still rather low — 73 percent of CEOs actually think marketers lack business credibility. While some companies are finding success through social media, two-thirds of the FTSE 100 are failing to engage.
The study found that many of these companies are underutilizing social giants like LinkedIn and Facebook. For example, nearly 95 percent have LinkedIn Company Pages; however, less than a quarter list their products or services. Additionally, only 20 percent posted a status update in the 30 days prior to the study.
While we really can’t say if social media skills boost share prices, ignoring these platforms doesn’t help. An earlier study revealed that 77 percent of consumers said they would buy more from their favorite brands if the company’s CEO was tweeting. We dont’ expect every executive to jump on Twitter, but it’s worth having a conversation with them about additional resources for your marketing team.
Jennifer Beese: Jennifer Beese has worked as a community manager and social media strategist. When she’s not writing, you can find her studying anatomy and physiology—she literally has a skeleton in her closet—or under the stars with her telescope.