Fewer financial professionals view social media as a fad and more are incorporating it into their business, according to a new study.
Fifteen percent of financial professionals who use social media gave YouTube, Facebook, Twitter and LinkedIn a high rating for business use, compared to 8 percent in a 2010, according to a study by American Century Investments.
In the 2010 study, 55 percent of advisors gave social media a low ranking, compared to 40 percent this year.
Although acceptance is gaining, many advisors are still struggling with how to use the new tools, said Jamie Needham, digital marketing strategist for American Century, an investment firm based in Kansas City. “If leveraged correctly, social media has proven to produce tangible business results, yet only 7 percent of advisors surveyed chose business building and promotion as their top use of social media,” he said.
The survey took responses from 309 financial advisors, brokers and registered investment advisors, 35 percent of whom say social media has value for their business, up from 26 percent in 2010.
When the survey started in 2010, 22 percent felt social media was a fad with little value for business compared to 13 percent who feel that way now.
Compliance issues are still the number one concern, although the number is dropping, according to the survey. Thirty-six percent listed it as their top concern today, compared to 47 percent in 2010.
One-third of respondents believe social media is a good use of asset managers’ time and resources, up from 21 percent in 2010.