Industry Experts Discuss the Impact of Social Media on Institutional Investing

October 15, 2014

In the past, we’ve discussed the value individual investors place on digital and social media resources, but new research tells us the influence of these properties is likewise established on the business-to-business end of financial services. Thanks to the ability to deliver relevant and timely insights, social media has become a key source of information for Institutional Investors (IIs) -- as well as the Institutional Asset Managers (IAMs) who oversee their portfolios -- as both sides navigate the ever-evolving investment decision-making process.

To better understand how these investment professionals are tapping into social media, and, consequently, what engagement opportunities may lie ahead for financial marketers targeting this important audience, we turned to our own platform and surveyed nearly 300 IIs and IAMs in the United States. The research, which fielded in June 2014, focused on those closest to final decision-making in order to hone in on the true influence of socially-sourced information. We have outlined a few high-level takeaways below. To hear top industry experts discuss how Institutional Investors are tapping into digital and social media, register for our webinar on Wednesday, October 22.

How Institutional Investors are Leveraging Digital and Social Media – 4 Key Research Findings

1. We found that most Institutional Investors and Institutional Asset Managers are now using digital and social sources consistently, and they plan to increase their usage: by next year, at least half of IIs and IAMs on LinkedIn expect to be using the platform to inform their investing roles. Given these adoption rates, it’s clear that this trend is moving beyond “emerging” and well into established territory.

2. We also learned that both IIs and IAMs are utilizing social media for a variety of content-driven purposes; namely, for market or industry updates, relevant commentary or opinions, and to research financial companies, executives or industries.

3. Despite a high percentage of IIs seeking specific types of content on social media, the research found far fewer IAMs sharing information relevant to the needs of their clients and prospects. This discrepancy highlights a valuable opportunity to shape perspectives on industry issues and investment decisions through differentiating content. Exemplifying this potential value, our research found that most Investors using social media to inform their investing have actually learned something that has directly influenced an investment decision or recommendation.

4. No matter their reason for turning to social media during the investing process, IIs and IAMs are particularly keen to use LinkedIn given its professional context and strong industry presence.

To find out more about how Institutional Investors are tapping into digital and social media, and to hear industry perspectives from JP Morgan and Greenwich Consulting, sign up for our upcoming webinar on Wednesday, October 22. Don’t miss this opportunity for an in-depth look at our research results, a view into what we’ll be studying next, and a live Q&A with top industry experts!

 

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