Decisions, Decisions: How Social Media Shapes the Investment Process

Social Media

Decisions, Decisions: How Social Media Shapes the Investment Process

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By Sociabble

Think investors have little time for social media? Think again.

Research conducted by LinkedIn and Greenwich Associates has revealed that digital resources are gaining traction as a source of content that not only informs investors, but influences critical decision-making. The research demonstrates that social media- and LinkedIn in particular- is being leveraged for insights throughout the institutional investment process.

 

 

LinkedIn: The Preferred Social Network of Institutional Investors

According to the research, 97 percent of institutional investors use digital resources such as websites and blogs, while 79 percent regularly turn to social media for information and insights. LinkedIn comes out as the top social media platform used by investors, with 48 percent active on the platform and 85 percent of those users signing in at least once a week. 39 percent of investors have increased their use of LinkedIn as a source of information over the past twelve months, while 41 percent plan to make more use of the platform over the coming year.

Institutional investors tap into social media for timely news and industry updates, opinions and commentary on markets and events, educational content regarding new products, and much more besides. They also use LinkedIn for group discussions, which are an extremely effective way of sharing ideas and obtaining new insights. But the most significant result of all is this: investors’ research on social media influences the decisions they make.

Yeap, that’s right- on top of conducting research on industry issues and topics, nearly a third of institutional investors who use social media have learned something that has influenced an investment recommendation or decision. In other words, what they discover on social networks has a direct impact on who they decide to do business with.

Investors on Social Media: What This Means for Companies

If there’s one thing this research indicates, it’s the fact that how companies position themselves on social media has never been more important. Indeed, the challenge facing many organizations is delivering content that is timely, meaningful and relevant enough to attract the right investors.

As well as following conversations, interacting with influencers and engaging with trending topics, this involves projecting an authentic and trustworthy image. And one of the most effective ways of winning investors’ trust is to empower those who already trust the company (employees, partners, clients and fans) to vouch for it on social networks. This is brand advocacy, and is all about showcasing the organization from the inside out.

Social media: the land of arty types, marketers and millennials? Not exclusively. The domain of silly selfies and light-hearted content? Absolutely not. The research released by LinkedIn and Greenwich Associates clearly indicates that social media now plays a key role in serious business. Companies that do not leverage social networks for their marketing, sales and investment objectives are therefore at a serious disadvantage.

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