The biggest stumbling block to using social media is not compliance concerns, but “coming up with frequent and relevant content,” cited by 37%. Thirty percent said they hesitate to use social media because of broker/dealer concerns, while 15% pointed to uncertainty over the “future regulatory environment.”
Nonetheless, 94% of the 185
advisers surveyed said they plan to increase their use of social media in the
coming year. Only 24% said they were “mildly active” in their use of social
media, and 19% have no social media presence.
“Savvy advisers are beginning to realize social media is as much a business development tool as it is a communications vehicle,” said John Anderson, head of practice management for the SEI Advisor Network. “What this survey shows is that advisers have the opportunity to see real business returns if they can begin to put social media plans, processes and policies in place, rather than just using it sporadically.”
Tim Shanahan, chief executive of Compass Capital in Braintree, Massachusetts, said, “Most advisers have moved past their initial concerns about social media. We, like many advisers, now realize that social media is a powerful tool that can help us target specific groups and individuals to uncover business opportunities—especially younger clients.”