Investing in the Digital Age: how media influences the institutional investment journey:
If you are a wealth management marketer/Investing, you know that your industry is changing. Last year, a study by Willis Towers Watson found that the total assets under management (AuM) of the top 500 executives in the world rose by 15.6% in 2017 to nearly $ 94 billion, the largest growth in a year. At the same time, the top 20 companies now have a record of 43% of these companies. This is a good consolidation.
To continue to grow, asset managers need to work hard to attract the attention of institutional investors who represent everything, from pension funds to insurance companies and foundations.
So how do you reach them?
First, you need to understand the role that content plays at each stage of the institutional investor journey and how it shapes your investment decisions.
Embrace the power of new media
For more information, LinkedIn hired Greenwich Associates to interview 277 institutional investors in North America, Europe, and Asia.
The report shows that investors consult digital media more frequently (63%) than financial publications (48%). In the last three years, the number of institutional investors using social media to explore wealth management activities has almost doubled, from 36% in 2015 to 68% in 2018.
Understand the buyer’s journey in Investing
The report also found that when investors decide to choose a new fund manager, they look at digital perceptions at every stage of their buying journey:
1. Stay tuned
Monitoring market conditions is an essential part of the job, and more than a quarter of institutional investors believe that relevant, personalized news is the most important type of content manager. Investors also say LinkedIn is the best media company for delivering personalized news content, ahead of Twitter, Bloomberg, and Forbes.
2. Identification of investment vehicles
Finding suitable investment vehicles requires thorough research and 59% of investors spend 15 to 30 minutes reading specific content. European investors have rated LinkedIn better than the Financial Times for in-depth training on the subject.
3. Compile a list of candidates
Investors use social media to research asset management companies (68%) and connect with asset managers (64%). They also say that LinkedIn is the best media company to follow people.
4. Choose an investment path
Investors can not commit large sums to an article, but 20% believe that the quality of the published research/content is the most important factor in appointing an asset manager.
5. Develop the relationship
Once a new relationship is established, investors still need market research and news. 58% use social media to get support from their asset manager.
The Greenwich Associates report also shows that brand trust is valued more than the ability to earn high returns from hiring an asset manager. And for the second consecutive year, Brunswick’s annual survey of digital investors found that investors consider LinkedIn to be the most widely used and trusted social media platform for investment research.
What does this mean for marketers?
Good content is not only enjoyable but can also play an important role in an investor’s decision-making process. Unlike financial advisors who work for individual clients, institutional investors are responsible for the assets of an organization. In order to make the right investment choices, they have access to a wide range of relevant, up-to-date information.
As institutional investors increasingly search for this information on social media, the Greenwich Associates report shows that LinkedIn has a unique position to provide the content they need at every stage of the journey, from tracking market trends to choosing a new motivation.