In the last few years there has been a dramatic increase in the number of asset management firms utilising social media. We have gone from a situation where only a handful of firms had a profile to now where it’s pretty hard to find an asset manager who hasn’t got involved in the ‘social scene’.
Most have a social media profile across all the platforms. Of course, some firms are paying lip service to what everybody else is doing, but others are using these platforms to extend their profiles.
Due to the rules of advice surrounding product placement and financial promotions, it has been difficult to use social media as a direct channel to market. Nevertheless, social media is very good for brand development and thought leadership - establishing your position as a kind of ‘trusted voice’ in the market. Firms need to be aware of that and use social media in this manner, rather than just being ‘noisy’ for the sake of it. Understanding one’s niche audience and generating relevant and personalised information are paramount when embarking on a social media campaign.
I think things are starting to change in terms of tailored content for social media within the investment management industry, although this has been especially the case with private wealth / high net worth individuals (HNWI) rather than institutional investors. According to estimates [1] 90% of all HNWI have a social media profile and between 2010 and 2013, the number of affluent users on Facebook soared from 29% to 61%. LinkedIn saw its numbers run from 10% in 2010 to 31% in 2013. Social media allows us to communicate with like-minded people, so it's a great tool to bridge the communication gap.
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