When I meet with Financial Advisors to discuss their online strategy and use of social media the conversation nearly always turns to the advisor's skepticism about generating business from social media. Everyone is also concerned about compliance issues, and rightly so. But, with a solid strategy in place, you can handle compliance issues. It's those intangible concerns that get us off track.
Since this happens so often, I've done some research and put together a list of social media statistics Financial Advisors should know.
My Target Audience Doesn't Use Social Media
- Forrester conducted a survey last year and found 68% of online adults who own an investment account maintain a profile on a social networking site. That was last year and the survey used Q3 2011 information. One must assume the percentage is even higher now.
- 55-64 year-olds is the fastest growing demographic on Facebook and Twitter.
- LinkedIn says 71% of advisors report finding their target audience of prospective clients are active on LinkedIn. 62% reported getting new clients. And 32% reported seeing an incremental impact on their bottom line of over $1 million in new assets under management.
- A recent Google/Ipos MediaCT study find 60% of Boomers say watching online video has become an important part of their day. And, 75% of Boomers and 68% of seniors report taking some sort of action after viewing a video.
People Of Means Don't Use Social Media
- A LinkedIn study found 63% of mass affluent consumers take action after using social media to learn about financial products and services
LinkedIn is actively courting the financial advisor industry and 9 out of 10 advisors interviewed by LinkedIn last year were leveraging LinkedIn.
- LinkedIn reports the average household income of its users exceeds $100,000. Two-thirds of millionaires younger than 47 use LinkedIn. And 90% of people with investable assets between $100,000 and $1 million are active social media users. Of those, 44% engage with financial institutions in social media and more than one-third are actively following companies.
- Twitter says 45% of its adult account holders are interacting with financial services firms.
Frankly, I think these stats and many more speak loudly to the fact that financial advisors ought to be developing strategies and getting active in social networks. What do you think?