Advisers Using Social Media Report Lukewarm Results
For all of the advantages advocate say it carries in building outreach, social media may not be the best way for financial advisers to build new relationships.
According to a new report from Aite Group, “Financial Advisors Use of Social Media 2011: The Bloom is Off the Rose,” the percentage of advisers who have used social media to differentiate their practice from competitors’ practices declined from 21% in 2009 to 9% in 2011.
Aite said this suggests that as more advisers have adopted social media, most gravitated to LinkedIn over other sites and tools, and some of them have found Facebook, Twitter, or blogs to be ineffective, and have discontinued using them.
Aite also found that social investing sites play little role in advisers’ use of social media. No more than 3% of them frequently visit any of the leading sites, according to the report. Stockpickr is the most visited site, though just 13% of advisers have visited it at least once. Stockpickr and Wikinvest are the most well-known of the sites, but are familiar to only about one-third of the advisers surveyed.