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Financial Advisors and Social Media Understanding the Opportunities and Challenges

Financial Services Webinar Series

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Today’s speakers

Emily Friedman Associate Research Consultant

LinkedIn

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Neil Benedict Managing Director

FTI Consulting

Panelists

•  Davis Janowski Technology Columnist & Reporter InvestmentNews

•  Mitchell Rock SVP / Investment Advisor Morgan Stanley Smith Barney

•  Cathy Curtis Certified Financial Planner Curtis Financial Planning

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Agenda

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§  Insights: Financial Advisors’ Use of Social Media

§  Financial advisor panel

§  Q&A

§  Next event – June 28

Marketing Solutions

Partnered with FTI Consulting Global business advisory firm with proprietary research panel

Online survey among 463 financial advisors in the U.S.

Methodology

Includes wirehouse advisors, broker-dealers and registered investment advisors

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Marketing Solutions

Executive summary

§  Social media is quickly becoming a significant component of financial advisors’ marketing, and adoption rates will continue to grow.

§  When using social networks for business, financial advisors

overwhelmingly prefer LinkedIn – and they would like to use it more if permitted.

§  The majority of advisors who use LinkedIn for client prospecting have gained new business, particularly through proactive use of site tools to support acquisition.

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Marketing Solutions

Key Findings

Marketing Solutions

29%

52%

Current marketing efforts Marketing efforts one year from now

Marketing efforts two years from now

?

% who say significant role in marketing currently vs. one year from now:

Financial advisors expect social media to play a more significant role in their future marketing

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Marketing Solutions

Overall, LinkedIn is the most used social network among financial advisors, followed by Facebook

17%

71%

61% 50%

LinkedIn Facebook Twitter Google+

Business use

Personal use only

78% use LinkedIn

75% use Facebook

38% use Twitter

37% use Google+

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Marketing Solutions

Among FAs who use at least one for business

71% have used at

least one social network for business

91%

32% 28% 22%

LinkedIn Facebook Google+ Twitter

Social networks used for business in the past year:

Nearly three in four financial advisors have used at least one social network for business in the past year

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Marketing Solutions

LinkedIn is favored over other social networks particularly for networking and growing business

8X as likely to use LinkedIn

to make professional connections

3X as likely to use LinkedIn

to cultivate client prospects

NETWORKING GROWING BUSINESS

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Marketing Solutions

Financial advisors would like to leverage LinkedIn for more of their business needs

30%

34%

42%

20%

42%

31%

71%

31%

42%

43%

48%

53%

56%

77%

Enhancing current client relationships

Cultivating client prospects

Building my brand identity

Cascading thought leadership in my field

Improving the effectiveness of my referral network

Expanding my professional knowledge base

Making professional connections

Would ideally choose LinkedIn for this purpose if regulations weren't an obstacle

Have used LinkedIn for this purpose

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Marketing Solutions

12%

20%

20%

42%

$5,000,000 or more

$1,000,000 to $4,999,999

$500,000 to $999,000

Less than $500,000

More than three in five advisors who have leveraged LinkedIn to cultivate prospects have gained new clients

$1M+: 32%

No, 38%

Yes, 62%

Have you gained new clients from prospecting on LinkedIn? Resulting gains in assets from new clients:

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Marketing Solutions

Advisors who gain new clients on LinkedIn proactively leverage site networking tools to grow their business

70% use search tools to find

potential clients

64% request introductions

to new leads

NETWORKING GROWING BUSINESS

Among advisors who gained clients on LinkedIn

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Marketing Solutions

Successful advisors increase use of LinkedIn due to target client presence & improved understanding of site

Decreased, 3 %

Stayed the same, 21 %

Increased, 76 %

71% The types of clients I

want to reach are active on LinkedIn

66% I have a better understanding of how to leverage LinkedIn

for business

Top reasons for increased use:

Has your business use of LinkedIn increased over the past year?

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Marketing Solutions

InvestmentNews Findings

Marketing Solutions

Most financial advisors are already using social media, and more than half are using it for professional purposes

Source: InvestmentNews Advisors and Social Media Survey, May 2012

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Advisor use of social media

Marketing Solutions

Financial advisors who use social media for business strongly prefer LinkedIn, while personal use is highest on Facebook

Source: InvestmentNews Advisors and Social Media Survey, May 2012

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Social media tools used by advisors

Marketing Solutions

When prospecting for new clients, financial advisors turn to LinkedIn over all other social media sources

Source: InvestmentNews Advisors and Social Media Survey, May 2012

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Reasons advisors use social media for business purposes

Social media applications used to attract new clients

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Today’s panel

MODERATOR:

Davis Janowski Technology Columnist & Reporter InvestmentNews

Mitchell Rock SVP / Investment Advisor

Morgan Stanley Smith Barney

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Cathy Curtis Certified Financial Planner and Investment Advisor

Curtis Financial Planning

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Next event: Financial Institutions and Social Media

June 28

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Thank you for attending part three of our Financial Services Webinar Series

Learn how marketers have successfully met their objectives:

http://marketing.linkedin.com/success-stories

Contact us: MktgSolutions@linkedin.com

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