Social Media Memo

Social media directions for financial professionals

Active Managers Polish Their Message

By John C. Drachman

Advisolocity marketing consultant D. Bruce Johnston recently showed the membership of the National Association of Active Investment Managers (NAAIM) how to improve their communications  through a combination of low-cost social media, web site refreshes and better story telling.

Better messaging is best for active managers

“Despite being disrespected by ETF enthusiasts, ignored by fans of index funds and sneered at by proponents of target date funds, the case for active management has never been stronger,” Bruce said.

The Advisolocity/NAAIM presentation, which is now available for download, also takes today’s investment-centric advisors on a guided tour of the best communications practices — and worst hurdles — of web-based client acquisition.

NAAIM defines “active investment management services” as taking an active role in the ongoing process of investment selection and risk management with the objective of improving a portfolio’s risk/reward relationship.

“The 2007-2008 bear market, following on the heels of the 2000‐2002 decline, led many investors to question the wisdom of buy-and-hold investing,” explains Jerry Wagner, a NAAIM founding member.

“NAAIM members have always believed active is better,” he continued. “We support this position through sound research.”

NAAIM was formed in 1989 as a non-profit association of registered investment advisors who provide active money management service to their clients. It includes roughly 200 member firms nationwide, managing an estimated $14 billion. NAAIM’s membership ranges from small regional firms to large national firms with over $1B AUM, including hedge fund managers, mutual fund companies and a variety of other firms that provide professional services to RIAs.

Advisolocity is a full-service Internet marketing resource dedicated to financial advisors and money managers,” Bruce added. “What distinguishes us most from other agencies is our executive-level understanding of the investment management industry.”

Filed under: Advisor, Bruce Johnston, Financial writing, RIA, Social media, , , ,

Small Businesses Are Trying and Liking New Communications Strategies

By John C. Drachman

Even in an uncertain recovery, many smaller businesses are committed to expanding their presence, yet have little appetite for going back to business as usual.

The pattern that characterized the emergence from similar market environments in the past is just  not being repeated — and contributing to low levels of hiring.

The cycle of downsizing and staffing up has been altered as executives look to more efficient ways to motivate purchasing behavior through new combinations of technology and communications.

Small is still beautiful

With an open mind, a sense of experimentation, and a relatively small budget when compared to traditional marketing, smaller firms are finding themselves rewarded by fresh attention to their ideas and products through social media initiatives.

Small businesses embrace communications technology

For managers between $25 million and $1 billion in assets under management (AUM), social media marketing and networking offers the prospect of heightened media bandwidth for a lower cost than more traditional advertising programs.

The University of Maryland’s Smith School of Business looked at the relationship between social media and small businesses and found that the technology adoption rates in the U.S. have doubled in the past year from 12% to 24%.

The data, undertaken by the University, is based on a December 2009 telephone survey of 500 small business owners. Adoption rate calculations are compared against a baseline report conducted in December 2008.

The study concludes that nearly one in five small business owners are integrating social media into their business processes — Facebook and LinkedIn were the most popular sites. In fact, 45% of surveyed respondents even believe their social media initiatives will pay off financially in 12 months or less.

Deploy more with less

If you have a small financial services firm, perhaps you have made decisions about adjusting your staffing and business model to the challenges of the current environment. Social media programs provide a way to deploy more resources and effort toward your distribution and marketing efforts without heavy additional costs

This article is a summary of an excerpt from “An Introduction to Social Media: A Guide for Smaller Money Managers.” Authored by R. Jeffrey Young, Huntington Asset Services, and D. Bruce Johnston, Advisolocity, downloadable copies of this report are available at

Filed under: Advisor, Bruce Johnston, Financial writing, Social media, , , , , ,

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April 2014
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John Drachman, Editor

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