LinkedIn is seen as a professional website fare more than Facebook or Twitter
LinkedIn is categorized as social media, and you can be social on LinkedIn if you want.
But among a vast majority of nvestors, Linkedin is perceived as a professional website, and as such is a possible place investors will go when searching the Internet for financial services and advice.
A Spectrem Group Millionaire Corner study from the second quarter shows that while more investors use Facebook than LinkedIn, they are more likely to use LinkedIn for investment needs. Young, wealthy and advisor-dependent investors are more likely to use LinkedIn while searching for financial information.
As a result, LinkedIn is considered a good jumping off point for any advisor or financial services provider wanting to begin a social network strategy. Spectrem’s research indicates some investors prefer companies that have a social website presence, even though the research indicates social media is not the first place investors look for financial advising or information.
The Millionaire Corner study was conducted among three wealth segments: Mass Affluent (with a net worth under $1 million not including primary residence), Millionaire (with net worth between $1 million and $5 million NIIPR), and Ultra High Net Worth (with net worth between $5 million and $25 million NIPR).
Facebook usage is close to double LinkedIn usage among all investors, but LinkedIn is catching up. Among the Mass Affluent, Linkedin visits have tripled in the last three years, from 10 percent to 31 percent, and it is as high as 40 percent among the UHNW.
Seventeen percent of UHNW investors visit LinkedIn daily, and 10 percent of the Ultra High Net Worth investors plan to increase their usage.
While young investors across all wealth segments are more likely to use social websites for any purpose, 54 percent of UHNW investors between the ages of 55 and 64 use LinkedIn for financial communication and research.
LinkedIn is not seen by most investors as a place to “share”, which in this case means actively participate in chats and forums, as much as other social websites are. But 50 percent of Millionaire business owners do just that on LinkedIn, and 19 percent of Millionaires 35 years of age and younger consider themselves “active’’ users of Linkedin.
Among Millionaires, only 2 percent consider Facebook a place to go to get financial and investment information, and only 4 percent consider LinkedIn as the place to go for that purpose.
But 7 percent of Millionaire investors do see LinkedIn is a place they would go to find a financial advisor. That number is seven times higher than the same consideration for Facebook or Twitter, among the most popular social media examples.
Seventeen percent of Millionaires 35 years of age and younger say they anticipate using social media such as LinkedIn to a greater degree in the future for financial information.
Only 9 percent of Millionaires check LinkedIn daily, which indicates they do not think it is a necessary website in terms of financial needs and wants. However, 31 percent of Millionaire investors 35 years old and younger do check daily, as do 16 percent of professionals and 15 percent of senior corporate officials.
All of the above numbers are affected by the concern of most investors about the security of their information on social media websites. Seventy-one percent of Millionaires say they worry about the security of their financial information on websites like LinkedIn, and 52 percent worry that a hacker or terrorist attack would destroy all the financial information that exists on the Internet.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.