Digital marketing is playing a key role in institutional asset managers’ marketing strategies as they look to gain traction in an overly competitive marketplace, according to a study published by Cerulli Associates. 

Of the top 30 institutional asset managers by assets under management, 83% host some type of audio/visual content on their website and social media platforms, the Boston-based research firm found in its latest report, entitled “Institutional Marketing and Sales Organizations 2023: The Growing Importance of Digital Marketing Efforts.” 

The study also found that 76% promote webinars while 40% offer podcasts. By using digital marketing technology, asset managers are looking to gain exposure and draw attention to their expertise, according to Laura Levesque, director at Cerulli and author of the study. 

“What we’re finding now with the increased use of social media, audio/visual, and YouTube clips … it’s now becoming a tool that asset managers are also starting to use,” she said. “The benefit of all these different types of media they can use to reach their audience is that they have the opportunity to provide different levels and different lengths of expertise.” 

In her research, Levesque explained that among the top 30 assets managers, the level of firms’ sophistication with the media varies. There are those that have professional studios within their offices, while others have less developed facilities. 

“If one leading manager is doing it, then it’s likely most of them are and in fact most of them are,” she said. “They may not have the state-of-the art studio, but they do have a relatively sophisticated complex digital marketing strategy.” 

Social media is a main communication source for asset managers to get their messages out to their audience. The study found that all 30 of the institutional asset managers pointed to LinkedIn as the most common social media platform they use to engage with clients, prospects and consultants. 

In addition, 90% identified X and YouTube as the most common platforms. Email continues to be a means for asset managers to communicate with potential clients, but one that can be overdone, according to Levesque. 

“It is a gateway to introduce an organization’s capabilities to key decision-makers at institutions and investment consulting firms in a highly relationship-driven industry,” she said. “However, the tool should be used judiciously and in parallel with other tactics.” 

Asset managers and investment consultants have said previously that they receive so many emails they never get the opportunity to read them all, she added. 

Social media, by contrast, is a lot easier to access than email. People can do it through their phone in bite-sized installments by scrolling through their feeds, Levesque explained, something they can do while waiting for a plane, getting ready for a meeting, or whatever they might be doing.  

"It can save time for those that don’t have it,” she said. “It can be easy to access from wherever you are, and it’s a little bit easier to navigate than having to go through your email inbox.” 

The next stage of the study will be to speak more directly with the asset managers to find out more about their digital marketing strategies and the decisions that go into them, Levesque said. Digital marketing will continue to be an important tool for institutional asset managers as they try to gain clients in the competitive space, she added.  

“These are crowded spaces, and marketing content on its own is insufficient to get the attention of prospective clients,” Levesque said. “As such, marketing for institutional asset managers is multifaceted, requires numerous touch points, and should be designed to keep institutions top-of-mind for asset owners making investment decisions.”