Social Media Marketing: It Works, and It’s Growing!

Written By : Clifford Blodgett

As a financial advisor, you have probably heard about the massive potential of social media and digital marketing. And yet, you may be wondering, Where is the proof? How do I know that marketing myself online would be effective?

Luckily for you, there are major firms tracking online marketing results. A recent study by Putnam Investments surveyed over 700 financial advisors to find out exactly how social media and digital marketing helped them grow their practices in 2014.

First, it’s important to note that the number of advisors using online marketing has increased tremendously. 75 percent of the advisors surveyed are now using social media to promote their practices.

The study even gives us a pretty clear idea of the typical “social advisor”: these advisors have an average of 11 years of experience, they are active on three social networks, and they’re managing an average of $84 million in client assets. It’s not just young, hip, 20-somethings utilizing social media anymore!

So what about results? Of the advisors who reported using social media, 66 percent said they had gained new clients as a result. The study marked a dramatic increase over the 49 percent of advisors who reported using social media in 2013.

As for asset gain, check out these numbers:

• 39 percent gained assets in excess of $1 million… up from 29 percent in 2013
• The median gain in assets was $1.6 million… almost triple the gain from 2013
• The average gain in assets was $5.5 million

It’s easy to see that digital marketing carries tremendous power to grow your practice. Perhaps more importantly, social media is a rapidly growing way of conducting business. Even if you don’t cultivate a social media presence, your competition most certainly will. And with prospective clients spending more and more of their time online, you can’t afford to fall behind.

Filed under: Social Media for Financial Advisors