Financial advisors are now making greater use of social media than ever before, even compared to just one year ago. This is the underlying finding of an in-depth 2014 study conducted by Putnam Investments of financial advisors’ social media practices nationwide.
Among the more than 700 financial advisors surveyed across the United States, 66% of those using social media for business indicated that social media network initiatives have helped them gain new clients, up sharply from 49% in the previous edition of the research. Advisors who have acquired new clients through social media are reporting a median gain of almost $2 million in new assets in the past year, close to triple the level of last year’s respondents!
LinkedIn remains the number one business site of choice as 55% of advisors regard it as a primary network. Meanwhile, Facebook usage has surged on a year-over-year basis to 24%, while Google+ and Twitter are also gaining significantly in popularity. Overall, a typical financial advisor employing social media for business is active on an average of three social networks.
Some additional statistics revealed through the study:
- 75% of all advisors are using social media in some capacity for business.
- Female advisors report higher usage of social media for business than male advisors (82% versus 73%).
- Smartphones are the access device of choice for advisors under age 30, about even with stationary or docked computers which are strongly preferred by the age 50+ set.
In identifying a need among financial advisors to understand the emerging importance of social media as a business-building tool, Putnam has developed key practice management offerings in this area, including: providing best practice seminars to advisors on use of LinkedIn and other social platforms; a series of online resources and tools; one-on-one training and continuing discussions; creation of a community discussion via the firm’s LinkedIn group; and video vignettes on Putnam’s Advisor Tech Tips blog.
Full results of Putnam’s 2014 social media survey can be accessed by clicking here. For more information about social media and to inquire about social media training, please visit Putnam’s Social Media Center.
Meanwhile, Mid Atlantic registered reps are also encouraged to visit the Rep Neighborhood website for more information on our social media policy.