Don’t disregard Facebook—a report released Tuesday by Spectrem found that the number of millionaires who use the social networking site has doubled since 2010 to 46%.
Also using Facebook are similar percentages of ultra-high-net-worth investors, those with a net worth of $5 million to $25 million, and mass affluent investors, those with a net worth of $100,000 to $1 million.
Ultra-high-net-worth investors are the most likely to read blogs by trusted advisors (30%), followed by mass affluent investors (21%) and millionaires (20%). LinkedIn is also popular, with between 19% and 26% of investors using the service.
“Led by Facebook, the social media era has finally arrived for the nation’s wealthiest investors, with nearly half the nation’s millionaires now logging onto the social network,” George Walper Jr., president of Spectrem Group (left), said in a statement. “Learning how to effectively use social media and financial blogs is critical to the future success of financial services firms. Providers who fall behind run the risk of frustrating their investors and losing customers,” he added.
Advisors have got the message. A Cerulli report released Aug. 9 found that 63% of advisors who were on the fence about adopting social media in 2010 have started using it in 2011. Furthermore, 13% say it is a key element in their marketing strategy.
Spectrem found that while millionaires appear to look at social media favorably, they have their favorite sites. While Facebook and LinkedIn were popular among the wealthy, Twitter ranked much lower, with just 3% to 6% of investors using the micro-blogging site.