The choice of whether to list in the UK or the US depends on the unique strengths of the LSE’s diverse investor base compared to the sheer depth of US capital markets. These differences create distinct investor expectations and influence the dialogue that companies must maintain in each market.
In the US, where reporting is compliance-led and little more than a black-and-white Word document, marketing is more competitive than in the UK. This is because the market is simply so large and has so many players that companies need to be bold to stand out. This has led to formal reporting, including marketing forewords that have assertive tones of voice and a high-frequency approach to online content.
Meanwhile, in the UK, corporate communications are more thoughtful, reflecting the cautious nature of investors in London and the extensive regulatory landscape. This has led to a less frequent communications strategy with content showing greater integration. For instance, it is now common to see sustainability more thoroughly integrated into the articulation of the business strategy and model, particularly among FTSE 100 companies.
Despite these differences, there are important similarities. Purpose and values play a significant role in both geographies, marked by a shift in rhetoric regarding stakeholder engagement from a “working for” approach to a “working with” approach. Digital-first and multi-channel strategies are also prominent in both the US and the UK, with companies striving for a connected and consistent experience across channels, featuring more engaging content delivery such as video or infographics.
As the UK seeks to enhance its appeal as a global listing destination, there are valuable lessons to glean from across the pond. Embracing a more proactive and direct communication style, particularly in highlighting growth stories and technological innovation, could enhance investor engagement. While the UK’s nuanced approach fosters trust and long-term relationships, a stronger emphasis on self-promotion combined with a bolder use of digital channels could help UK-listed companies attract greater attention.
By selectively adopting elements from the US’s playbook, UK companies could convey their messages with greater clarity and conviction on the global stage.
If you’d like to discuss this, or any other subject, please get in touch with Richard Costa, Consultancy Director, at richardc@gather.london
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