Usage of social networks for financial information on the rise.
While Facebook is by far the most recognized and most used social media platform, LinkedIn’s positioning as a more business-oriented site makes it more appealing to retirement plan participants as a resource for financial and investment information, according to a new survey conducted by Millionaire Corner.
Nearly three-quarters of retirement participants (72 percent) are familiar with Facebook, while 68 percent use it. There is a wider gap inbetween those who are familiar with LinkedIn (53 percent) and those who use it (39 percent), but they are more likely than Facebook users to use this social network for financial or investment information. Ten percent of plan participants plan to increase their usage of LinkedIn in the near future versus eight percent of Facebookers. Further, 11 percent of LinkedIn users use it for financial or investment information vs. just six percent Facebook users.
LinkedIn has successfully marketed itself as a site that literally means business. As of August, LinkedIn is the world’s largest professional network on the Internet with more than 120 million members in more than 200 countries and territories, according to the company’s website. More than two million companies have LinkedIn company pages. Meanwhile, Faceboook’s cachet has nothing to do with being a conduit for financial information or activities. Financial advisors and plan providers may have Facebook pages, but they are mostly for brand-building rather than serving as a useful tool for plan participants.
Few plan participants currently seek financial media via social media, according to our survey. Not surprisingly, those under the age of 35, typically the earliest adopters and most prodigious users of the newest gadgets and technology, are the most likely to broaden their social media use to include financial activities and research. Just over 20 percent say they use LinkedIn for this purpose vs. just 7 percent who use Facebook for investing and finance.
Women are more likely than men (14 percent vs. 8 percent) to use LinkedIn for investing and finance, whose those with between $10,000 and $24,000 use LinkedIn for this purpose than other wealth groups.