More Financial Pros Using Social Media For Investor Relations

While adoption rates have lagged so far, social media will be an important tool for investor relations in the near future,. Overall, 56% of institutional investors surveyed said that social media was “not yet significant but growing in importance” as a professional tool.
Those findings, per a global survey of institutional investors by National Public Relations and the AMO network of financial communications agencies, also noted a smaller proportion (37%) said that they welcomed social media, including investment forums and blogs, as a new way for disseminating news and information. In addition,  33% said they consider social sites useful as a “heads up,” especially during fast-moving events, like takeover bids or proxy fights.
No surprise, investment pros were most likely to visit investment forums, with 39% saying they visit these frequently or very frequently. Next up was LinkedIn, at 34%, followed by investment and financial services blogs at 32%. Some 22% said they consult Twitter frequently or very frequently for professional purposes; just 10% said they use Facebook this way.
It’s worth noting that social media lags behind other sources of information in terms of its perceived trustworthiness: 76% of investors said they considered newswires their main source of information, and 87% said newswires are always or usually reliable, versus just 17% for social media sites.

On the other hand, just 17% of investors dismissed social media as irrelevant to their work.
Back in March 2013, I wrote about the results of a survey by Accenture showing that 50% of financial advisors use social media to communicate with clients on a daily basis. The Accenture survey also found that 74% of financial advisors believe social media is helping them build their asset portfolio, while half have used social media to gain new clients. Further, 49% said they think firms that fail to use social media will lose clients as a result.
1 comment about "More Financial Pros Using Social Media For Investor Relations".
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  1. Serena Ehrlich from Business Wire, January 21, 2014 at 1:45 p.m.

    Funny you should write this, Business Wire just published a free guide this week on the dos and don'ts for social media and investor relations/financial communications. It's a topic I have been talking about since 2006 - it can be both a great and terrible tool. But once folks know the real pros and cons, not just what people advocate but the actual facts, it can be highly successful.

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