Social media is becoming indispensable for IR – next-gen investors are driving change

Article by Eva-Maria Bernreuther, Junior Consultant IR/PR, and Melissa Birkmann, Junior Consultant IR/PR, in Going Public magazine.

The investor relations landscape is changing rapidly: Young investors are increasingly turning to social media channels for information, questioning traditional sources of information and expecting fast, visual and dialogue-oriented content. For companies, this means more than just a supplementary communication tool – social media is becoming a key lever for building reach, credibility and trust. Those who reach the next generation not only shape the dialogue with investors, but also actively influence perceptions in the capital market.

Young investors are changing the capital market

The capital market is undergoing change. A new generation of young investors is entering the trading floor and challenging traditional communication patterns. According to the German Stock Institute (Deutsches Aktieninstitut), the number of young investors between the ages of 14 and 39 rose by 150,000 to around 3.7 million in 2024. This means that the age group has more than doubled in size over the past ten years and now accounts for almost a third of all private investors in Germany.

This development is not only significant in quantitative terms, but also influences the communication requirements of listed companies. Young investors obtain information differently, expect fast, visual and dialogue-oriented content – and they want to find financial information where they are already active: on social media.

Changing information behaviour

A survey conducted by BaFin in May 2024 highlights the changing information behaviour of young investors. The results show that investors between the ages of 18 and 45 are increasingly turning to social media for information on financial topics. Platforms such as Instagram, YouTube and LinkedIn have established themselves as key sources of information. There, users encounter financial topics in formats that are short, understandable and authentic.

For investor relations, this represents a paradigm shift. Companies seeking to reach (potential) shareholders must communicate where information is gathered and opinions are formed. In addition to annual reports, corporate news and ad hoc announcements as the basis of IR communication, the importance of digital platforms is also growing. Social media expands traditional IR channels to include the dimension of digital visibility and accessibility.

LinkedIn as a key platform

Among social networks, LinkedIn has established itself as the leading medium for professional IR communication. With over 304 million registered users in the European Economic Area (EEA) (Statista, February 2025), the platform is the largest professional network.

LinkedIn offers three key advantages for investor relations: reach, target group precision and credibility. No other platform brings together private investors, institutional investors, analysts, journalists and opinion leaders in such a concentrated manner. Here, people not only communicate, but also discuss, contextualise and amplify content. A well-placed post on the annual financial statements or the annual general meeting can achieve enormous reach with comparatively little effort and in a short time.

SDAX companies leave potential untapped

To what extent are listed companies already exploiting this potential? A recent Kirchhoff analysis from October 2025 shows that many companies, particularly those listed on the SDAX, still have some catching up to do on LinkedIn. One-third of companies are not yet using the platform consistently as an IR channel. Twenty per cent do not post anything at all on relevant occasions. A third of SDAX companies even refrained entirely from communicating their 2024 annual results on LinkedIn.

It is clear that reporting occasions offer the greatest opportunities for reach and engagement. Posts on annual and half-yearly reports achieved an average of over 160 likes. Video content, which appears in around 20 per cent of posts, further increases engagement, but is still used too rarely. While LinkedIn has already established itself as an integral part of investor relations in the DAX and MDAX, many SDAX companies still have room for improvement.

Best practices show how it's done

Successful examples from the Kirchhoff analysis show how IR communication can be effective on LinkedIn. The Alzchem Group, for example, combines two posts for each reporting occasion: one post with a link to corporate news and a second with a CFO interview in which the results are contextualised. Schaeffler pursues a similar approach and consistently supplements it with quotes and video content. Two posts appear for each financial report – one with a photo and management statement, and a second with a video and key financial figures.

Both companies prove that structure, recognisability and the active involvement of management are key success factors. They bring figures to life, create context and promote dialogue with their stakeholders.

Success factors for modern IR communication

Successful communication on social media follows three principles: relevance, presentation and dialogue. Content must be interesting for the target groups and consistent with the corporate strategy. It should be professionally designed and tailored to the channel – with clear messages, meaningful visuals and appropriate publication times. It must also facilitate dialogue with stakeholders.

Conclusion

Social media is no longer a supplementary tool, but a strategic component of modern investor relations. It enables real-time communication, visual storytelling and direct exchange with a new generation of investors. Companies that use LinkedIn in a targeted and professional manner can expand their reach, strengthen their reputation and build trust.