Registered Investment Advisors Lean into Digital Marketing: Part 1 - Social Media.

According to the TD Ameritrade Institutional 2019 RIA sentiment survey, Registered Investment Advisors (RIAs) are leaning heavily into digital marketing for 2019. RIAs are not just looking to supplement traditional distribution tactics such as referrals and events, but to prioritize digital marketing alongside those tactics. While 47% of the RIAs surveyed by TD Ameritrade mentioned referrals as their top marketing initiative to drive growth in 2019, they are also mentioned bolstering their online presence as a means of diversifying their outreach strategies. The move toward a more digital strategy is not unusual considering recent trends; however, in this blog, we will try to understand how advisors are using social media.

A growth initiative for RIAs is social media outreach, with 11% of the respondents stating this method as their go-to growth initiative for 2019. As advisors have become more comfortable with the compliance surrounding the use of social media, so we’ve seen the proliferation in its utilization rates.  Since the SEC ruling in 2013, section 206 of the advisor’s act made it easier for advisors to use social media to support their communication, causing the utilization of social media by RIAs to take a huge leap forward. In 2018, 92% of surveyed advisors said social media helped them acquire new clients, an increase from 2013 when only 49% of advisors attributed social media to aiding with client acquisition.

Tools for implementing social media are high on the list of technology investments for RIAs with 30% making significant technology investments in 2019. With technology investments dominating RIA spending for 2019, social media will account for a large portion of investment moving forward. According to the Putnam Social Advisor Survey 2018 , many of the advisors surveyed highlighted the importance social media had on the efficiency of their job. Advisors found it easier to share information and communicate with clients, improving the decision-making process. Therefore, the investments in social media technologies by RIAs can be as a result of increased efficiencies experienced by advisors.

As for the what social media networks RIAs are using, LinkedIn remains the most popular (72%), followed by Facebook (62%), Twitter (52%), Youtube (41%) and Instagram (38%). Network adoption trends since 2013 have been on the rise.

We don’t see this trend slowing down anytime soon and expect to see it continue moving forward with future generations of advisors. 

So, what does this mean for Registered Investment Advisors who are looking to optimize their mix of marketing tactics and get their best results from their digital investments? It means that RIAs can start to unlock the power of digital marketing tools, steer clear of the potential pitfalls and boost their marketing initiatives.

The future looks bright!

By Ahmed Rosowsky