Embracing social media and digital advertising is a matter of ‘when’, not ‘if’. Based on forecasts, there will be over 39 million people on social media in Germany alone and brands can no longer afford to shun social media. If you have a business, your customers are online and expect you to be online as well.
Social Media in the Finance Industry…Why?
One of the most common objections the finance industry has against social media is that this channel just isn’t for finance. Firms point to quirky consumer brands like fashion brands that naturally align with social media’s focus on stunning visual content and assume that consumers only want to interact with ‘fun’ brands on social media.
But the statistics paint a different picture. According to the 2019 Putnam Social Advisor Survey, 92% of financial advisors using social media
for business can attribute asset gains to social media activity. In the 12 months preceding the survey, the average asset gain was $1.4M ($0.5M median).
And it’s not just individual advisors that are using social media for business. The financial services industry owned 12.3% of total digital ad spend in the US ($7.2 billion), and eMarketer estimates that the industry’s total digital ad spend will reach nearly $11 billion by 2019. In Europe, it is estimated that social media accounted for 45% of all digital campaigns within the banking and insurance sectors.
It’s clear that the finance industry isn’t just using social media, it’s thriving on it. Whilst social media may be ‘easier’ for light-hearted retail brands, there’s clearly a place on social media for finance companies to perfect their messaging, targeting and strategy.