81% of financial advisors use social media for business

Last year, three-quarters of over 800 financial advisors studied in the U.S. used social media for business. In their latest annual study, Putnam Investments found that this figure has now risen to 81%.

“We are seeing a clear, powerful trend emerging where social media is becoming an almost indispensable communications tool for financial advisors in their day-to-day interaction with their clients, investment providers and the broader marketplace,” said Putnam Investments president and CEO Robert L. Reynolds.

The use of social media by advisors cuts across all ages and 40% now use four or more social networks for business, up from 25% last year. Furthermore, today 69% say social media has a “significant role” in their marketing efforts compared to 56% last year.

According to Putnam Investments, “the increasing utilization of social media by advisors is translating into concrete business results: The share of advisors acquiring new clients through social media is up sharply to 79% (from 66% in 2014), with the average annual asset gain from these clients standing at $4.6 million”.