Darien Gould hosted my investment blogging webinar for the Third Party Marketing Association last summer. I was intrigued by the statistics investment management companies found on social media marketing and asked them to blog about the topic. The guest post below is the result.
I’m particularly interested in Darien’s view that social media and digital marketing can help small businesses stand up to larger companies. In the world of the financial blog, I noticed that smaller companies can show more personality than larger ones. Smaller companies are often more agile when it comes to compliance.
Darien and I would like to hear whether these statistics and suggestions match your experience in this area.
Can social media and digital marketing be effective for investment manager marketing?
By Darien Gould
Digital marketing and social media were hot topics at the eWomen Network business conference I attended last summer. But as a marketing consultant, I’ve heard that investment managers have expressed a lot of opposition to social media. Typically, digital media is only used as an electronic replacement for paper marketing materials, and websites are often just brochures about the company. I was wondering whether social media and digital marketing are effective for marketing investment managers.
After the conference I gave a short overview of the information online. I found that the answer is Yes! Social media and digital marketing can really benefit investment managers – and give smaller companies an edge over their competitors.
Reports from Peregrine Communications and Greenwich Associates show that institutional investors and advisors are increasingly using digital and social content to research and track managers. If you are not active in these areas, your visibility will be impaired.
Peregrine Communications statistics
Here are the highlights of Peregrine 2018 Linked content, as reported in Peregrine’s BEST PRACTICE: Hidden habits of the best asset management communicators:
- seasonality: Institutional investor traffic to investment manager websites was seasonal. Compared to the average number of visits, manager sites saw more than 26% more visits between August and October and 29% more visits between December and February. Digital content on a website increases the interest of those interested in the company and can lead to repeated visits. For this reason, it’s important to update your content more frequently in these five months.
- effectiveness: Well-thought-out management and demonstration of corporate strengths can differentiate companies in the increasingly competitive struggle for investor interests. The companies that get the most attention when looking for potential customers use customer-oriented terms such as “solutions”, “services” or “customers”. If you are an investment manager, is your content focused on solving your clients’ problems?
- Social media: More than two thirds of institutional investors use LinkedIn for research. However, every fifth asset manager is not at all present on social media. This underpins my suggestion that you can use social media and digital marketing to differentiate your company from your competitors’ companies.
Statistics of Greenwich Associates
Greenwich Associates study, Invest in the digital age, provided insights into the use of social media in the investment process and its effects on investment decisions:
- 63% of institutional investors now use social media, less than half use finance-specific publications.
- 58% of respondents use social media to get support or service from their wealth manager.
- LinkedIn is the best known provider of personalized market information.
Get into digital and social media marketing!
My conclusions? Compliance and legal concerns don’t have to exclude all social media marketing. Strengthening your company’s brand and demonstrating your company’s strengths through thought leadership does not require discussion of performance or selection of specific titles. And the same digital marketing that can interest prospects in your company is also effective to highlight your value to current customers.
These new marketing techniques balance the competitive environment and allow even the smallest managers to fight potential clients’ attention even against the largest investment firms.
I am curious, is your company using digital marketing? Which social media platforms do you use?
You can follow my posts on Investment Marketing on Twitter at @DG_Analytics and on LinkedIn at linkedin.com/in/dganalytics, Also, check out the posts from while you’re on Twitter @PeregrineComms and @ GreenwichAssociates,
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