Wednesday, December 21, 2011

Not Everyone Is Having Success With Social Media

Of the more than 400 financial advisers recently surveyed about the effectiveness of their social media marketing less than 20 percent reported it was successful for reaching new customers.

Even more suggestive is the fact this is a 50 percent decline from two years ago.

In my opinion this has more to do with the social media systems and tools they are suing rather than an indictment against social media marketing as a whole. For instance, although most saw their overall use of social media as ineffective, the use on LinkedIn as an effective social media marketing tool saw an increase.

Of course it did. LinkedIn is a social media tool for use by business professional. I'm no genius, but even I understand this group is among the most likely to have need of financial advise. You can use Facebook to reach a much wider audience, of course, but when you are targeting such a niche market it makes more sense (to me) to focus your efforts as close to this group as possible.

LinkedIn is meant to help business professionals. If you are targeting business professionals, then LinkedIn is the social media marketing tool for you.

With this in mind I think the recent survey says more about the effectiveness of their social media managers in identifying the best resources to get their message out, rather than the effectiveness of social media in general.

Now ask yourself: Who manages YOUR social media? Are they targeting the right group of people and are they using the right tool to do it?

Financial advisers in the United States are seeing fewer benefits from their use of social media, a survey by Aite Group showed on Tuesday.

Out of the 437 advisers surveyed, only 19 percent said social media was useful for reaching new prospective clients -- roughly half the number from two years ago, when it was considered a leading benefit.

"Social media has been over-hyped and the benefits just aren't there for a lot of advisers," said Aite senior analyst Ron Shevlin in an interview.

Click here to read more of this report from Reuters.

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