SOURCE: Spectrem Group

July 17, 2013 08:00 ET

Wealthy Investors Increasing Social Media Usage

CHICAGO, IL--(Marketwired - Jul 17, 2013) - A significant change in the relationship between investors, providers and advisors is ongoing as they determine the best way to communicate with each other through social media, according to new research from Spectrem Group.

"Social media usage -- from Facebook to LinkedIn to YouTube -- is a significant part of the daily lives of many investors," said George H. Walper, Jr., president of Spectrem. "Spectrem's social media study reveals the current trends for investors, including research on investors who want to be able to use social media more."

The study looks at Mass Affluent ($100,000 to $1 million, not including primary residence), Millionaire ($1 million to $5 million NIPR) and Ultra-High Net Worth ($5 million to $25 million NIPR) investors.

The use of social media to access financial information is growing, and investors are adding financial searches on LinkedIn and Facebook as part of their regular research methodology.

  • 45% of Mass Affluent investors consider Facebook a source for investment and financial needs, while 42% would go first to LinkedIn.
  • Younger investors are more likely to use social media to seek financial information.
  • While age is the greatest factor predicting social media usage, more than half of investors over the age of 50 access Facebook regularly.
  • The use of video via video-friendly sites like YouTube is expanding as a professional tool.

"There is a perceived delineation, from a professional standpoint, between LinkedIn and Facebook, but providers and advisors should be using Facebook and other social sites like Twitter and YouTube to attract investors," Walper said.

More insights from Spectrem Group's second-quarter investor reports are available on Spectrem's MillionaireCorner.com, including:

About Spectrem Group
Spectrem Group is a strategic consulting firm specializing in the affluent and retirement markets, integrating proprietary research with expertise in building business, marketing and M&A strategies. Its professionals have held senior management positions at leading global companies.

About Spectrem's MillionaireCorner.com
MillionaireCorner.com is a powerful source for up-to-the-minute news and information for investors, about investors designed to fuel financial growth. It incorporates Spectrem Group research as well as outside information. In the future, the site will offer financial advisor referrals.