Research Reports the Extent of Social Media Influence on Investment Decisions
6 May 2015
By Rana Abdel Fattah
We recently stumbled upon a great read written by Adam Shell for USA Today’s American Markets. The article briefly discusses the influence that social media has on investment decisions, noting that the level of interaction on social media platforms like Facebook and Twitter is viewed as a “key source of information.”
The article pulls interesting research from Greenwich Associates, which notes that “almost 80% of institutional investors use social media as part of their regular work flow, and approximately 30% say the information consumed via social media has directly influenced an investment decision.” With input from 256 corporate and public funds, insurance companies, endowments and foundations in the U.S, Europe, and Asia, the research outlined that: 48% of investors noted that information from social media prompted them to do an additional research on an industry issue or topic; 37% said they shared information from social media with decision-makers at their companies; 34% said information learned on social media influenced a decision to work with a particular client or company; and that 33% said information obtained on social media triggered a discussion with their investment consultant.
Overall, the article points to the increasing effect that social media has on influencing investment decisions with investors. For example, 40% of the global institutions are expected to increase their use of social media in 2016.
Using social media as part of your investor relations communications process will also benefit your company as it paves way for engagement, expands reach, and increases awareness with institutional investors and the financial media.
Check out the full article here.