SOCIAL MEDIA
Due Diligence
Contractual Issues
Best Practices
Sandra L. Reid
Director, Compliance
Putnam Retail Management
Overview
•About me
•About Putnam
2
Overview
Brand and business leadership is increasingly being played out in a digital
network.
Companies must have a strategic plan to occupy space in this area:
Thought leadership
Organizational agility
Innovative marketing
Analytical, intelligent solutions tailored for clients
FOCUS
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The Web is dead. Long live the Internet!
Internet 1.0
Internet 2.0
Prospects
Consultants
Your
dot.com
Clients
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Financial
advisors
putnam.com
The Power of Being Digital
• It took 34 years for the telephone to be in 50 million homes. It took 6 months
for Facebook to go from 50-100 million users.
• What happens in Vegas stays on YouTube, Flickr, Twitter, Facebook…
• If Facebook was a country, it would be the third largest country in the world.
Only China and India would be larger. Facebook would be 2X as large as the
US.
• 53% of employers research potential candidates on social networks.
• 80% of companies use Social Media for recruitment. 95% of them use
LinkedIn.
• Just last week a YouTube posting went viral and attracted 69 million viewers in
less than 5 days.
Source: The Growth of Social Media: An Infographic, Jeff Bullas
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The Big 4
SEARCH
• Dominant in search
• PageRank Technology
• A listening and research
tool
PROMOTION
• 400 million people visited
Twitter in the past month
• 100 million active
users/month
• 50 million users log
on to Twitter daily
• 230 million tweets
posted everyday
PROFESSIONAL
• Professional profiles
• Groups
• 150 million registered
users
PERSONAL
• More than 800 million
users
• +350 million access via
mobile
• Poised to dominate
entertainment content
distribution in next
1–3 years
• Fastest growing
segment: Women
age 55+
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A mobile strategy is imperative
2014
2015
Mobile Internet usage
surpasses desktop
users
One-third of US
consumers will own a
tablet device
“
Check your iPad mail — that’s
one app. Browse Facebook, Twitter, and
The New York Times — three more apps.
Listen to a podcast on your smartphone.
Another app. View RSS feeds in a reader
and have Skype and instant messenger
conversations. More apps. At night you
watch a streaming Netflix movie.
You’ve spent the day on the Internet — but
not on the Web. And you are not alone...”
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“Smartphone and tablet users prefer using
apps whenever possible, and only surf the
web as a last resort.”
— Keith Rabois, Chief Operating Officer, Square
41%
of the most affluent Americans use
Social Media for communication
Sources: kasina, 2011;
www.digitalbuzzblog.com/2011-mobile-statistics-stats-facts-marketing-infographic/
Subscribing and sharing content
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iPods changed media industry...iPhones ramped
even faster...iPad growth leaves “siblings” in dust
Global unit shipments (000)
40,000
First 6 quarters cumulative unit shipments, iPod vs. iPhone vs. iPad
iPad
iPhone
iPod
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
0
1
2
3
Quarters after launch
Source: Apple, as of Q2’11 (6 quarters post iPad launch).
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5
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iPad content application: Putnam Perspectives
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iPad content application: Putnam Perspectives
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iPad: WSJ advertising
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The case for U.S. equities:
Integrated digital campaign
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The case for U.S. equities:
Integrated digital campaign
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FundVisualizer with portfolio modeling
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Overview wrap-up
• Putnam is providing content for firms and advisors to share with
clients on social channels
• The social world is changing, and it is vital to keep up
• Putnam provides easily understood visuals on complex market
conditions to help our clients speak to their clients
• FundVisualizer can be a useful tool to compare funds and model portfolios
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Due Diligence
• Determine what digital media presence may be appropriate
– Corporate presence
– Individual presence
• Types of devices
– Company
– Personal
• Security/permissions
• Supervision
– Static
– Interactive content
• Record-keeping
• Additional considerations
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Contractual Issues
• 3rd party vendor
• Privacy
• Hosting solutions
• BCP
• Security
• Confidentiality
• Supervision
• Liability
• Capture
• State and Federal Law
• Record-keeping
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Best Practices
• Have a written policy
• Tags
• Business use or personal use
• Connections
• Use pre-approved content
• Groups
• Determine allowable functions
– Recommendations
– Liking/Favoriting/Following
– Sharing
– Applications
– Profile permissions
• Network updates/comments
• Integration of other Social Media
accounts
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• Questions/Answers
• Use of URLs/links
• Evaluate business owners
Sandra Reid is the Chief Compliance Office of Putnam Retail Management,
the principal underwriter and distributer of the Putnam mutual funds, the
Putnam 529 for America sm, and Putnam Variable Trusts. The opinions
expressed here today are those of the speaker.
Putnam Retail Management
putnam.com
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