Firms with a social-media policy

Source: InvestmentNews Data

Social-media applicationsused to attract new clients

20122013

Wirehouses/regional brokerages

IBDsRIAs

20122013

Instagram

Pinterest

Google+

YouTube

Blog

Twitter

Facebook

LinkedIn

2013 2012

Networking withother professionals 57.0% 54.3%

Marketing and promotionfor my firm 38.3% 30.1%

Sharing news and information relevant to my clients 37.0% 28.3%

Consuming news and contentrelevant to my business 32.6% 23.4%

Prospecting for new clients 32.6% 23.2%

Directly communicatingwith individual clients 13.3% 8.0%

Recruiting 8.5% 6.5%

Do not use 29.1% 37.0%

Reasons advisers use social media for business purposes

Adviser use of social media

20122013

Do not use Personal and professional

use

Professionaluse only

Personaluse only

19.1%

12.5%17.0%

24.1%

10.7%

22.8%

42.5%

51.4%

20122013

Prohibited bymanagement

Lack ofarchivingor review

technology

Lack of trainingLimited bymanagement

Timeconstraints

Uncertaintyover complianceand regulatory

rules

Primary challenges for advisers when usingsocial-media sites for business purposes

2012

61.9%

21.7%

18.7%

13.2%

7.9%

7.4%

1.1%

0.6%

17.0%

2013

67.5%

25.3%

23.1%

16.3%

11.3%

9.7%

0.9%

0.3%

13.1%

blog

Do not use

Social-media tools used byadvisers professionally

2013 2012

Improved communicationwith existing clients 59.1% 52.9%

Established industry expertise 46.5% 55.0%

Competitive advantage; quicker access to market-moving news 37.1% 34.0%

Found new clients 31.4% 28.3%

Increased revenue 13.2% 13.1%

Other 15.1% 20.9%

Benefits from professionaluse of social media

Advisers and social mediaThis month, InvestmentNews surveyed financial advisers about the challenges, benefits and uses of social media. More than 350 advisers participated. Overall, more advisers are using social media for professional purposes and they’re focusing more on compliance.

1.5%

0.0%

21.2%

28.8%

12.1%

4.5%

72.7%

45.5%

0.0%

0.0%

21.3%

27.9%

8.2%

3.3%

85.2%

36.1%

66.7%

86.8%

94.7%

60.9%

81.6% 83.0%

16.5%20.2%

41.7%

58.3%

26.4%

15.8% 14.5%

22.4%

48.5%

59.4%

28.7%

16.2%

Reasons advisers do not usesocial media professionally

26.1%

47.7%

36.9%

25.2%

21.6%

30.4%

51.8%

42.9%

21.4%

8.9%

20122013

Do not knowhow to use

Firm does not allow

Too time-consuming

Don’t think socialmedia will be

beneficial to business

Fear over compliance-and regulatory-

related issues

In some cases, advisers did not answer each question, and multiple responses were allowed.

50.7% of advisers use social- media compliance software, compared with 42.5% in 2012.

19.3%of advisers this year have gained new clients from using social media, com-pared with 15.4% in 2012.