By John C. Drachman, Advisolocity

Will low budgets prevent marketers from taking advantage of  the Internet’s free bandwidth?

Taking advantage of free bandwidth

“Not likely,” says Advisolocity’s D. Bruce Johnston in his his recent post on Blackberry Blogosphere.

Social media types are taking heart from a study quoted by Marketing Pilgrim that while 40% of marketers report budgets down for the year, 70% plan to redeploy their resources from traditional print and advertising to Twitter and Facebook marketing.

“This resource shift is sure to accelerate as marketers and compliance officers now find common agreement,” Mr. Johnston said.

The release of FINRA’s 10-06 ruling has removed the last impediment to utilizing the cost-efficiencies and creativity of social media programs, he added.

Download your copy of FINRA 10-06 at the Advisolocity Resource Center

Can we expect a new social media marketing compliance lore to come into existence? Mr. Johnston thinks so: “Responsible, spontaneous, transparent communication can do a lot to put back the heart in this troubled (securities) industry.”

He pointed out three simple steps any marketer can take to heart as she undertakes a social media effort:

Archiving makes it easier to network.

1. Build a social media policy and follow it. If FINRA comes knocking hand them a copy
2. File product-related postings as usual
3. Treat blog and web site as connected, yet independent; with the blog focusing on thought leadership themes and the site offering products and services

“Simultaneously FINRA 10-06 has managed to strike a blow for common sense, fiduciary responsibility and freedom of speech,” he added.

While compliance officers  and investment marketers decode FINRA 10-06, financial advisors are embracing the new regulatory clarification.  According  to a Rydex AdvisorBenchmarking survey, advisors are looking to primarily use social media tools for “securing new clients (46%), enhancing communication with current clients (35%), and advertising or promoting their firms (30%).”

Over at financial research firm Nemertes, the social media cat is happily out of the compliance bag. “The new guidelines bring clarity,” a recent report stated, “but remove excuses for delay.”

Without delay, full speed ahead is required: Nemertes cautions the tidal wave of consultants, archivists, communications specialists, compliance firms and social media strategists, however, to get busy carefully: “Plan to converge or add social media features and capabilities with security solutions for communications media like email and IM.”