Social Business
Dec 3, 2012

Strong Social Media Presence Equals Healthy Stock Price, UK Study Finds

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Strong Social Media Presence? Healthy Stock Price, UK Study Finds

Social media can have a noticeable impact on different areas of business, and according to a new study from the UK, a strong social media presence relates to a healthy stock price. The study was done by Sociagility and the Public Relations Consultants Association.

Research was based on data from November 2012 using a methodology called PRINTâ„¢ which looks at five aspects of social media performance: Popularity, receptiveness, interaction, network reach and trust.

Analyzing FTSE 100 companies in the UK, two thirds are failing to engage on social networks. Companies who are doing well on social media were found to have a healthier stock price. Here are some more findings:

  • Pharmaceuticals biotechnology sector highest performing with retailers close behind.
  • Insurance sector scores well below FTSE 100 average.
  • Mining firm Vedanta and computer chip maker ARM Holdings hold top 10 spots.
  • When it comes to using LinkedIn company pages, only 20 percent of FTSE 100 companies are active.

From Tony Burgess-Webb, co-author of the report:

“Social media is playing an increasingly important part in the daily struggle for stakeholders’ confidence and support. How well a company engages is therefore a competitive issue internationally – both as a risk to be managed and an opportunity to gain advantage. This is as important for the C-suite as it is for corporate communications professionals.”

To download the full social media study, go here.


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