By D. Bruce Johnston, President and Chief Executive Officer, Advisolocity

Confronted with the shock of the new, it’s only natural for large organizations to trust that yesterday’s strategies will continue to work a little longer.

Social media raises awareness cost-effectively

However, after FINRA-1006 was released last spring, the regulatory guidelines that govern social networking policy for the investment industry leveled the playing field for everyone. As a number of the nation’s leading firms adopt a slow, but steady approach to social media strategies, the time may right for other firms to take the initiative.

For example, recent data from marketing firm LederMark Communications underscores the growing popularity of these tools among financial services professionals:

• 85% of those under 50 use social media
• 50% of those over 50 use these cost-effective tools
• Up to 40% of all users say that social media strategies are helping them build new business

Research from Spectrem Consulting Group last spring delivered similar findings:

• 63% of Twitter users read tweets that offer financial advice
• 46% of YouTube users and 41% of Facebook users seek information from social networking investment forums

A number of investment service providers and publications have been tackling the implications of the social media question. Recently, Spectrem Group and Financial Advisor Magazine sponsored a conference that identified a wide range of issues affecting advisors and investors in the shifting wealth management landscape.

Unified Fund Services, Inc., a subsidiary of Huntington Bank, which is based in Columbus, OH, announced its sponsorship of a webinar for financial advisors and fund marketers on August 3, called Using Social Media.

In addition to offering some practical guidance on how to use social media, the webinar also intends to feature insights on regulatory trends and archiving solutions. Using Social Media is designed to alert up-and-coming money managers and financial advisors to the advantages of implementing low-cost social media marketing programs.

Interested investment industry professionals are invited to participate in the webinar by registering here. Unified will continue to expand its social media marketing focus during its annual client meeting to be held September 12-13.

Personally, I think firms providing timely and accurate portfolio information, articles of interest and thought leadership pieces versus market commentary will distinguish themselves from the rest.