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Over the past five years, institutional investors have witnessed a remarkable 69% surge in their use of social media. An astonishing 78% of these investors now actively engage on LinkedIn every week, while 89% have confirmed that they take action based on content provided by asset managers on this platform at least every month. For marketers operating within the financial sector, this transformation marks the dawn of numerous new channels and strategies that wield significant influence, foster engagement, and have the potential to grow assets under management (AUM). To harness the full potential of these social avenues, it is imperative for marketers to not only remain attuned to the ever changing platform algorithms, but also to the constantly evolving behaviors of distinct audience segments. Although institutional investors have increased their presence and engagement on LinkedIn, their preferences have undergone noteworthy shifts that aren’t so obvious. Asset managers should consider the following factors in order to maximize the effectiveness of their next LinkedIn campaign.
It’s Personal, Not Business
In recent years, institutional investors have shown a nearly twofold increase in their interest in personalized content, prompting a significant shift in the content that asset managers must now produce. The key to effectively engaging with institutional investors in 2023 lies in delivering content that precisely aligns with their unique needs. The investment landscape has undergone a profound transformation, driven by digitalization, which has made it increasingly challenging for institutional investors to sift through more information than ever before.
Consequently, asset managers are compelled to furnish timely, high quality content tailored explicitly to the specific demands of institutional investors. This content must be designed to foster trust between asset managers and investors, as well as content that caters to each individual investor's distinct investment preferences and characteristics. It's worth noting that if a campaign encourages investors to leave LinkedIn and visit your firm’s website, the website should offer a highly personalized user experience (UX). While some wealth managers have made significant strides in meeting this particular demand, others still have progress to make. This disparity is primarily attributed to compliance constraints and a shortage of data on the side of asset managers. You can read more on personalized websites here.
The Long And Short of It
We’re always hearing about attention spans shrinking, but this isn’t necessarily true for investors. Institutional investors are demonstrating a growing appetite for long-form content, a trend that has been popping up across most social media platforms these days. Notably, nearly a quarter of individual investors now invest at least 30 minutes in absorbing a single article. This preference for long-form content has also brought about a shift in the devices investors favor when consuming substantial materials. An impressive 80% of institutional investors opt for laptops and desktop computers as their primary means of accessing such content. While the device shift should not alter your campaign too much, it does further drive home the fact that long form is truly being favored.
Video Isn't Going Anywhere
It's widely acknowledged that video content has maintained its position as one of the most effective formats for engaging audiences, and this remains true for content consumption on LinkedIn as well. Following video content, investors are most inclined to consume individual posts, closely followed by posts shared by asset managers. This underscores the importance of having your employees repost company content to extend its reach. However, there's an emerging trend on LinkedIn where research reports, particularly digital reports, are gaining popularity. Marketers are adeptly meeting investors where they are by embracing LinkedIn Document Ads. In a remarkable testament to this shift, LinkedIn Document Ads have experienced an astonishing 2,219% increase in usage from 2022 to 2023, once again highlighting the growing appetite for long-form content among institutional investors.
It's Personal, Not Business
In the midst of an ever-evolving global economy, asset managers are assuming an increasingly pivotal role as a unifying force, providing a sense of trust and security. Recent surveys have revealed that 41% of people now consider business leaders to be a more reliable source of information and guidance than journalists. This, combined with the fact that 49% of institutional investors make content choices based on the individual post author, has opened up new avenues for asset management leaders to forge meaningful connections with potential clients and wield substantial influence over their decisions.
In this context, individuals should recognize the immense potential of personal branding. By strategically harnessing their personal brand, wealth advisors can enhance the appeal and credibility of their professional brand, thereby expanding their reach to a wider and more receptive audience.
Nurture Your Firm's Reputation
While a history of delivering high returns continues to hold a prominent position in influencing decisions regarding asset manager selection, other factors like brand reputation, organizational culture, and the quality of content are closely following suit. Notably, brand reputation stands out as the paramount criterion when choosing an asset manager. For financial firms, the ability to shape their narrative and convey their value proposition and purpose through pertinent and accessible content provides a means to set themselves apart from their competitors.
It's clear from these findings that the financial industry has undergone a digital revolution, with institutional investors embracing social media, particularly LinkedIn. More personalized and long-form content is on the rise, and video remains a primary engagement driver. The future of the financial industry is not only digital, it’s personal too, and staying ahead means embracing these trends within your marketing strategy.
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