WoM issue 16

News

WELCOMETom Coombes, CEO

At the time of writing, the financial markets and economy seem on track for recovery, albeit not as fast as some people might like.A return to pre-crisis profit levels at some ofthe institutions is helping to restore confidence. Key issues and regulation continue to drive several extremely hot areas of technology. The media landscape continues to change quickly. In the last issue of Word of Mouth we looked at how social media is affecting the B2B financial sector. Since then, we have undertaken a survey that shows over 40% of companies use Twitter and 25% use YouTube. SWIFT and Finextra are running a social media webcast from Sibos in Amsterdam in October which Cognito is supporting. There are significant opportunities to capitalize on in the media and new ways of working. Firms need to embrace this change. Cognito launched a proprietary media profiling service, Cognito Analytics, earlier this month. The tool enables companies in the market to monitor their media profiles and track themselves against competitors. Finally, Cognito is opening its Asian Headquarters in Singapore, led by Anne Karumo, who is a long term partner and one-time former client of Cognito. We are excited about what lies ahead and look forward to helping our clients through this changing landscape.

NEW BREAKFAST BYTE SERIES

On April 7th, 2010, top marketing managers across the financial services industry gathered at the Harvard Club in midtown Manhattan for the first of our Breakfast Byte series, “Regulation Ready: Positioning for Success in a Changing Market Landscape.”

The purpose of the Breakfast Byte is to create a forum in which marketing and communications managers could provide relevant and useful insight for their peers. Our panelists, Aite Group, Tradeweb and DTCC, discussed the regulatory outlook for 2010 and how firms are utilizing regulatory uncertainty as an opportunity to develop and establish thought leadership.

COGNITO SAN FRANCISCO HOSTS PANEL DISCUSSION AND COCKTAIL RECEPTION, “RETHINKING FINANCIAL COMMUNICATIONS: FROM MEDIA RELATIONS TO MEDIA RELATIONSHIPS”

This summer, Cognito San Francisco brought together a host of journalists, clients, and industry executives for an evening of insightful conversation, cocktails, and cuisine at the Omni Hotel in the heart of the city’s Financial District. The event offered guests the opportunity to interact with members of the press; Pensions and Investments, Bloomberg, San Francisco Business Times and Private Equity Week all detailed their thoughts on best practices when working with journalists, the use of social media in financial communications, and the year in financial news.

COGNITO EXPANDS OPERATIONS IN ASIA AND OPENS SINGAPORE HEADQUARTERS

Cognito’s new Asian headquarters in Singapore will cater for Cognito’s clients, both locally and internationally, that need to manage their media profiles and activity in the region. Cognito has a network of partners throughout Asia and Anne Karumo, Regional Director, will oversee their operations to ensure seamless communications for clients. Anne is a communications specialist focusing on finance and technology, with prior experience at Wall Street Systems and Texas Instruments.

Contact Anne Karumo at +65 8112 6409 or email: [email protected]

New Office

01 | [email protected] Word of Mouth | Q4 2010

Events

Get in touch with your local Cognito office for a copyof our social media research carried out earlier this year.

www.finextra.com/sibossocialmedia

Over the last two years, financial commun-ications has been a roller coaster. At times it seems as if all of the late nights and crisis communications plans were one long night-mare. This year, however, it feels like things are finally starting to get back to normal, and many communications executives are breathing a sigh of relief. But like the song goes, “when life looks like easy street, there is danger at your door.” That danger is the coming challenge presented to us by the increased M&A activity that is certain to take place this year.

Most market participants believe that 2010 will be a watershed year for M&A. I expect that financial services institutions (and their vendors) will be no exception. Consolidation in asset management has already started, and the financial technology sector is also starting to make headlines – as the biggest traditional tech players gobble fintech companies whole. As we face a 2010 full of deal announcements

that may have a dramatic effect on headcounts, the question remains: will this activity become another toxic event for Wall Street, or can we use this opportunity to win back our reputation? I’d argue it’s an opportunity we cannot afford to pass up.

We have all seen the effect that bad commun-ication has on the market. By ignoring or patronizing its audience, a company invites a negative perception that looms over every other move it makes. Wall Street firms, therefore, need to step up to the plate and engage the press, tell their story and work on repairing the relationships that have been broken. I believe M&A communications is the right place to start for a few reasons: 1) Transactions are tricky, highly sensitive to timing issues like leaks, and the press generally assumes the worst about layoffs.

2) Transactions are susceptible to misin-terpretation about company motives and the real synergies for the products and people involved.

3) Transactions will be a lightning rod this year. Even a company that generally falls below the radar could become the subject of blog commentary for a deal that would have received little attention last year.

If your firm plans to conduct a transaction in 2010, it is imperative that you get it right. You should get out a good story to mitigate any risk that could spring up after the announcement. My advice is to go retell the company story today. The chess board has been significantly reshuffled on the media side (with many journalists switching jobs/beats or popping up at new outlets) and it’s important to start rebuilding now by getting your executives out to meet the press.

2010The Year for FinTech Deal Communications

In 2000, the world was in the grip of Internet fever and PR agencies were being set up faster than you could say “Max Clifford.” Against this backdrop of intense optimism, Cognito launched, but no sooner had we opened when the dotcom bubble burst abruptly. Amid such market turmoil, you might think a young business would struggle to survive, let alone succeed, but, ten years later, we have offices in London, New York, San Francisco, Los Angeles and Singapore. Little did we know that the dotcom bust would pale in significance compared with the crisis to come, but we weathered that too, emerging from the worst recession since the 1930’s even stronger. Here, we highlight ten key developments that fundamentally changed the PR world forever.

1. From snail mail to e-mail Previously, releases were either faxed or sent by snail mail. Roll forward to 2010, and email is de rigueur.

2. Social networking Cognito’s own research highlights that 46% of the Fintech 50 are active on Twitter and 100% on LinkedIn. PR professionals who ignore the importance of social networking as a genuine communication channel do so at their peril.

3. Advertising or PR? PR has held its own during the recent crisis, as financial firms begin to fully understand the need to protect their reputations proactively in the midst of public hostility towards their sector. This need has been heightened as digital media takes the world by storm.

4. From text only to digital news releases Ten years ago, if you sent out a news release by email, the rule was text only. Now, with the ability to embed video and publications embracing digital platforms, demand for news releases with multimedia-rich content will increase.

5. Digital publishing vs. traditional print media Daily losses have meant publications such as the FT and Wall Street Journal are launching pay-for models for access to online content. This move dispels the old notion that coverage online is less ‘valuable’ than its print equivalent.

6. Digital online video platforms Ten years ago, outlets for broadcast content were limited to established radio and TV channels. Only five years old, YouTube now has over two billion hits per day – double the prime time viewing figures for the three biggest US broadcasters combined.

7. Measurement PRs have been trying for decades to prove ROI.

M&A communications – Doing it right can help Wall Street win back respect. As published in PRWeek.

A DECADE OF PR 2000-2010

Word of Mouth | Q4 2010

ARTICLES

BY: DEBORAH EISENBERG, COGNITO

Cognito now introduces transparency to the heart of its offering with Cognito Analytics, a cost effective online reporting and planning tool.

8. Search is king A decade ago, Google users were the early adopters. Now, Google is synonymous with search, and the impact of communications campaigns has increased with SEO. We once waited for clippings by post, but now we receive instant email notifications via a myriad of dedicated clippings and alert services.

9. Blogging In 2000, blogging was in its infancy. Robert Scoble, a Microsoft employee, became famous for his blog, Scobleizer, and, making Microsoft appear “marginally but noticeably less evil to the outside world.” Our research shows that 28% of the top 50 fintech firms have blogs.

10. Websites In 2000, company website development was all the rage and it was all about Flash and less about the quality of the content. Today, sites are content-led and have become central communications staging points.

With a new decade ahead of us, what new communications channels will be revealed? One thing we can be sure of, things won’t stand still for long and we embrace that as a business. Plus ca change!

www.cognitomedia.com | 02


COGNITO’S NEW SERvICE ENABLES YOU TO TRACK AND MONITORYOUR MEDIA PROFILE AND YOURKEY COMPETITORS.

Cognito has always focused on giving its clients real transparency into PR activity and results achieved. Unlike many other agencies, Cognito puts measurable deliverables and targets into PR contracts so success can be easily measured. This ‘no-nonsense’ approach is embedded in our culture and our teams.

Cognito has now taken this philosophy and thinking a step further, and developed a new service that can be used by any firm in the market, not just Cognito PR clients. By using our specialist knowledge of the financial sector media, across the major financial centers, Cognito has developed a new service that allows firms to track and monitor their media profile in the industry, through a highly intuitive and simple web system.

Tom Coombes, Cognito’s CEO, explains, “We’ve developed Cognito Analytics specifically to help firms in the financial services sector. Almost all firms in the market have a profile in the media. We are now allowing them to see what that profile is, how they compare to their competitors and how they can improve. Our position as a PR firm for this highly nuanced industry means we know the media and can evaluate PR effectiveness accurately.” Cognito Analytics

has been built in conjunction with and is used by many of the leading firms in the financial industry around the world.

Susan Peter, Head of Marketing, SimCorp North America, comments, “I am very metrically driven and believe you have to be able to measure what you are managing. Cognito Analytics enabled me to audit the marketplace and discover what coverage other providers are getting. I love being able to log in to the system without having to wait for reports to arrive on my desk; I can get a sense of where we are at in real-time. Regarding the functionality itself, one of the best things about Cognito Analytics is being able to see where the news has had the most impact by viewing the impact bubbles.

COvER STORY

“Cognito Analytics enabled me to audit the marketplace and discover what coverage other providers are getting. ”

Susan Peter, Head of Marketing, SimCorp, North America

This has provided us with information that has really challenged our view in terms of what is newsworthy in the market.”

GettinGAnAlyticAl

• Cognito Analytics gives firms an accurate picture of their media profile

• Users can benchmark themselves against industry standards and competitors

• Facilitates improvement in their PR, messaging and positioning

• The nature and quality of their profile in the market

• How their profile changes over time, and how they compare to competitors

• The impact their news and messaging has on the market

• What they should be doing to improve their profile

Cognito Analytics gathers and analyzes information from relevant financial industry media and filters and organizes the information in such a way that clients can see:

www.cognitomedia.com | 04Word of Mouth | Q4 2010

COvER STORY

TRACK YOUR PROFILE AND IMPROvE YOUR PROnce you have a clear picture of your media profile, you can start to implement more effective PR and communications programs. Cognito Analytics enables you to monitor your business’ profile, on a daily basis, against the competition. This means you can tailor your messaging and press activity to improve the impact of your communications.

Cognito Analytics is a highly personalized service. Our proprietary technology is supplemented by analysts with extensive industry and PR experience who provide expert analysis and recommendations. Cognito Analytics includes:

• Initial analysis and benchmarking of your current media profile

• Summary report and recommendations

• Ongoing tracking, benchmarking and analysis

• Links to your coverage

• Comparison against your direct competitors

FOR MORE INFORMATIONOR A DEMO, CONTACT:[email protected]

the impact of your news and messaging

HOW GOOD IS YOUR MEDIA PROFILE?

• How effective is your PR program?

• How do you compare to the competition?

• Are you targeting the media properly?

Do you know the answers to these questions? ...Cognito Analytics does.

Industry profile and reputation are critical to firms in every market, none more so than in the financial sector. The trade and financial media play a crucial role in informing and educating the market. The quality and level of an organization’s media profile is essential in its ability to compete and keep ahead.

Cognito Analytics is a highly targeted, accurate and reliable service for companies in the financial sector to track and improve their media profile. Using information from the most important and relevant sources, Cognito Analytics shows you:

• The level and quality of your media profile

• Where you are appearing, and what is being said about you

• The impact and quality of your messaging and news

the level and quality of your media coverage

Where you are appearing and what is being said about you

UsinG informAtion from the most importAnt And relevAnt indUstry soUrces, coGnito AnAlytics shoWs yoU:

What do you hope to achieve from using video?EF: Ultimately, we hope to reach a wider pool of clients who may not have been exposed to our traditional direct mailers and email marketing, as well as create more rich content for our existing clients, particularly those who may have become desensitized to other forms of marketing. Which other communication channels are you considering for the future, e.g., social media?WBR: You have to choose the channels that your industry is using, at the very least to be able to respond to comments from your customers, but more effectively and proactively listen and contribute to industry discussions. Currently, I am growing my LinkedIn presence and group to communicate regularly with the market, as well as starting to tweet.

TIPS FOR ONLINE vIDEO1. Keep it short. Most viewers watch only the first minute of a video, so anything over three minutes is unlikely to be seen.

2. Don’t over-complicate. The most effective videos have a very simple message.

3. Give it away. Upload to YouTube or other free access sites for maximum exposure. This needn’t sacrifice your brand identity as pages can be customized and watermarked logos can be added to video content.

4. Make it watchable. The most persuasive soundbites are unscripted and instinctive.

5. Tag it right. The descriptions and labelling of a video can have a huge impact on its SEO success.

YouTube is now the web’s second largest search engine (after Google). Online video has become an accepted and expected means of receiving information and even politicians are harnessing online video’s popularity, with US President Barack Obama using his own YouTube channel to connect with voters.

USING vIDEO FOR BUSINESSSoundbites of staff previewing a research report, experts explaining a new product or footage of an event will provide a personal engagement with your audience.

Distributing your content through as many channels as possible increases the chances of it finding its way to journalists and ultimately to new clients. It is this growth that has prompted the likes of CNBC, Bloomberg and Thomson Reuters to rapidly promote multimedia content, with Reuters launching their ‘Insider’ video community platform.

“I see video as another medium through which we can execute our marketing strategy. Increasingly, customers are going online for information, and we’re providing them with dynamic information that they can watch and listen to,” said Dave Hagen, Vice President of Marketing at Scivantage, who recently engaged with Cognito on a video highlighting the firm’s 10 year anniversary.

MAXIMIZING vALUE Costs for video must be seen as a ROI, and a short video can be promoted through social media ads, which can deliver more bang for your buck than printed material.

As video has become a key feature of the web, marketers must capitalize on its popularity and ability to illustrate their industry expertise and animate their brand. By neglecting video, firms risk losing an online audience and wasting a major opportunity to enhance their offering.

WoM caught up with Hannah McCulloch from WBR, organizers of TradeTech, and Henna Mistry from EuroFinance to hear how they are incorporating video in their PR and marketing campaigns:

Why have you chosen video as a marketing tool?WBR: With time at an all time premium, getting your message across quickly, thoroughly and without misinterpretation is key. Through video, I can communicate high value industry content, testimonials, and product showcases without having lengthy webpages with endless text.

EF: Our target audience can get a preview of what to expect, allowing them to buy into the overall experience if they were to attend. What better way to do this than to show them actual footage from our previous conferences, including testimonials and interviews with the people who were there?

Why now, in particular?EF: Marketing has become an increasingly challenging role, and we now find that we need to move away from traditional methods in order to capture the attention of our prospective clients.

What advantages does video bring over traditional mediums?WBR: Video brings a much more personal way to communicate. To be able to put a face next to the testimonial, industry opinion or product, showcases your belief in your product or service.

VIDEO & THE WEBAs the Internet becomes ever more integrated into our working and personal lives, the way we use it to consume and share information is constantly developing. Along with the rise of social media, video has emerged to become one of the fastest and most influential mediums on the web.

EMAIL CAMPAIGNS THAT INCLUDE LINKS TO VIDEO ELEMENTS HAVE A 50% HIGHER CLICK-THROUGH RATE AND A 75% DECREASE IN SUBSCRIBER OPT-OUTS.

(Eloqua – US based Market Researchers)


FEATURE


WHAT DOES B-NEXT DO?b-next Group specializes in software solutions enabling financial institutions to manage risk, meet regulatory compliance and drive profitability. Our market conformity checking (MACOC):Suite platform provides an integrated and flexible set of proven application modules for key GRC areas such as Market Abuse, Insider Trading, Conflicts of Interest, OTC Monitoring, and Best Execution.

WHAT IS YOUR ROLE WITHIN THE COMPANY?As CEO of the b-next Group, I focus mostly on strategic direction and business development. Much of my time is spent with customers and key influencers who lead the way in setting standards and defining best practices, particularly the financial regulators.

WHAT WERE THE KEY CHALLENGES THAT YOU WERE FACING THAT LED YOU TO CONSIDER USING AN AGENCY?We began working with Cognito in 2009 because we recognized that the UK – particularly the London bank and brokerage market – was absolutely essen-tial to us for expanding our international presence beyond our traditional markets in the German-speaking countries. Cognito demonstrated an excellent knowledge of the market and had the network of contacts that we lacked. Our key challenge was finding a partner who could effectively convey our expertise and our core messages into the UK market.

WHY COGNITO, AND HAS YOUR EXPERIENCE SO FAR MATCHED YOUR EXPECTATIONS? Cognito was recommended to us and so far, we have been extremely pleased with the results. Our visibility in the UK financial community, particularly in London, has significantly improved and we have won our first major UK customer.

We have achieved high-quality media coverage and been quoted in numerous articles. We are increasingly being recognized by financial journalists as a reliable source of information on GRC issues.

HOW DOES PR AND MARKETING FEED INTO YOUR OvERALL BUSINESS?We have a long-established reputation in our home market for reliable, proven software solutions. We are perceived as a leader in capital markets compliance in both performance and quality. Our challenge now is to internationalize this reputation and to communicate it in a way which is relevant to the UK market. When we go in to see a potential bank or brokerage customer, it helps enormously if our PR activities have already communicated this image to them in advance.

I UNDERSTAND YOU ARE LAUNCHING A NEW COMPANY. HAvE YOU BEGUNA PR AND MARKETING CAMPAIGN FOR THIS?We have, and I am very excited about the new company. It is called b-compliance, and it will offer compliance outsourcing solutions ranging from software as a service to entire compliance functions, or even the complete Compliance Office, including staff.

Q&A WITH WOLFGANG FABISCH, CEO, B-NExT

This new initiative requires a broad and effective PR and marketing campaign, but based on our experiences, I have no hesitation in continuing with Cognito.

WHAT DO YOU HOPE TO ACHIEvE BY THE END OF THE YEAR, AND WHAT IS YOUR vISION FOR B-NEXT IN 2011?The London market is extremely important to us, as is our new b-compliance venture. We have a lot going on, including some exciting new product initiatives. I hope to celebrate the conclusion of a very successful 2010 with b-next staff who have been working very hard throughout the year.

In 2011, we want to see significant growth. This means, of course, revenues but also new customers and software applications, the foundation for future revenues.

Customer satisfaction is extremely impor-tant to us and, although our customers tell us that they are very happy, I want this to be even better as we live for our long-term customers.

website: www.b-next.de


Q&A

ABOUT COGNITOCurrently celebrating its tenth anniversary, Cognito is an international PR and marketing agency that specializes in the financial services sector. From offices in London, New York, San Francisco, Los Angeles and Singapore, Cognito works with financial institutions, investment companies and system/data providers to implement programs that help them improve their business’ profile, reputation and marketing. Cognito is different from other agencies in its exclusive focus and its commitment to offering clients transparency and results through its unique trackable PR service.

WoM is written and designed by Cognito.

London: +44 (0)20 7438 1100 | New York: +1 646 395 6300 | Los Angeles: +1 310 246 9530 | San Francisco: +1 415 946 8820 | Singapore: +1 65 8112 6409Email: [email protected] | Web: www.cognitomedia.com

The Journalist’s Perspective: Q&A WITH LUKE JEFFS, FINANCIAL NEWS

WHEN AND WHY DID YOU BEGIN YOUR CAREER IN jOURNALISM?At university, I wanted to be a trader, and it was only upon leaving that I realized I was not cut out for that role, although it got me thinking about other jobs based in the city. I graduated in 1997 and spent the summer in various jobs before deciding to chance my arm at journalism. I finally got an interview at a small publishing house called Global Business Information, which published newsletters about IT and operations within investment banking and asset management. I worked there for seven years in a variety of roles. Working at a smaller firm was beneficial as I gained experience in all facets of the editorial process, from idea generation through to subbing and layouts. In 2006, I joined Financial News as the paper’s trading and technology editor, covering the rapidly changing European market structure. This time has helped me develop my news reporting skills, learning from an experienced team of top financial journalists. REFLECTING ON THE LAST TEN YEARS, WHAT DO YOU FEEL ARE THE KEY CHANGES THAT HAvE OCCURRED IN THE INDUSTRY AND HOW HAvE THEY IMPACTED YOUR CAREER?I do not think journalism has changed particularly, rather, the channels of distribution are now very different. At FN, we write for the weekly paper and

the website, but recently, we have started incorporating new features, such as blogs and tweets. This has presented some of us with new challenges. The art of journalism has not changed; a journalist with contacts and the right news instinct beats one without those attributes, irrespective of the medium. TO ENSURE STORIES OR RELEASES ARE NOTICED BY jOURNALISTS WHAT ADvICE WOULD YOU GIvE ORGANIZATIONS?I urge firms to take greater scrutiny when it comes to their contact lists and to update them to ensure that any announcements are only going to those journalists who need to know. It is hugely frustrating to be inundated by irrelevant information.

I do not know if the communications industry will go this way, but I would like to see firms become smarter in the way they deal with journalists. Most of the PR firms we deal with don’t seem to know what the paper is about and therefore, we get lots of pointless phone calls pitching us completely the wrong stories. WHAT ADvICE WOULD YOU GIvE ORGANIZATIONS TO ENSURE THEY GET THE MOST OUT OF AN INTERvIEW?It sounds obvious, but it is useful if a spokesperson actually takes a side of an argument and backs it up with evidence, rather than sitting on the fence. Firms can often go into sales pitch mode and talk up

their books. This can put journalists off and make them less likely to call a firm in future.

MOST MEMORABLE HIGHLIGHTS OF THE LAST YEARSThe collapse of Lehman Brothers – the events around that time and in the following weeks are unlikely to ever be repeated. It was a strange time to be a journalist. It was clear that something huge was happening that needed to be reported. At the same time, it was obvious that the industry was facing some major challenges, and this was the end of the world as we knew it.

ABOUT FINANCIAL NEWSFinancial News is Europe’s leading weekly newspaper for the investment banking and securities industry. It provides comprehensive coverage across Asset Management, Investment Banking, Private Equity, and Trading and Technology. Over 100,000 executives read the newspaper each week.

Luke Jeffs provides a journalist’s perspective from Financial News and gives PR professionals sound advice

“A journalist with contacts and the right news instinct beats one without those attributes, irrespective of the medium.”

Luke Jeffs, Financial News

Documents

WoM issue 16