Eighty-five percent of financial advisors in a nationwide survey said they use social media in their practices today, up from 75% in 2014, Putnam Investments reported Thursday.
Over the past three years, the percentage of those reporting success in gaining clients via social media rose from 49% to 80%. The median asset gain reported was $1.9 million, with the average gain at $4.9 million.
“The use of social media by the financial advisor community has matured to a level where it is ingrained in how business is conducted and how professionals communicate with their clients and prospects,” William Connolly, Putnam’s co-head of global distribution, said in a statement.
“In our ongoing dialogue with financial professionals, it is eminently clear that social media’s role as a critical conduit for advisors in reaching the marketplace is going to continue to deepen and evolve for the foreseeable future.”
The survey did show that although social media use is widespread across all age groups, only 60% of advisors older than 65 reported use, and their ranks appear to be shrinking.
The research, conducted online in July in conjunction with Brightwork Partners LLC, comprised 1,018 financial advisors who had been advising retail clients for at least two years.
Putnam’s study put a face on the typical financial advisor who gains assets through social media:
• Aged 43, works at an independent broker-dealer.
• Has 10 years of experience.