Social media networks are becoming an increasingly important tool for individual investors, according to a new report.
Of investors who read blogs, 77% are likely to consult them for information on new financial products and services, according to the report released today by Spectrem Group.
The report, which looked at usage patterns among those using popular Web social networks, found that a significant percentage of users rely on the sites for financial information.
Sixty-nine percent of LinkedIn users, for example, are likely to consult their LinkedIn networks on investment issues, according to the report. YouTube is used for finding financial information by 46% of its users, while the same can be said for 41% of Facebook users.
More than one-third (36%) of investors say they are interested in receiving information from their advisors or corresponding with them through social media. Among investors under age 35, this rises to 53%.
The Spectrem report, "Social Media and the Investor," is based on a survey of 500 financial decision-makers in households with $50,000 or more in annual income who spend at least two hours per week on the Internet. At least one hour of respondents' online time per week is devoted to financial pursuits. The data have a margin of error of plus or minus 4.3 percentage points.