Why Advisors Should Embrace Making Videos
Financial advisors looking to build or launch a digital marketing strategy shouldn’t overlook financial videos as a means to reach existing and potential clients. They already have a built-in audience of wealthy investors looking for videos to watch, according to a report by Spectrem Group.
Forty-two percent of ultra-high-net-worth (UHNW) investors—those with a net worth between $5 million and $25 million—watch videos on financial web sites, Spectrem’s research, Using Social Media and Mobile Technology in Financial Decisions, found.
“Financial providers and advisors are actively engaging with clients and potential clients on their web sites, but an increasing number of investors today want to get their information from video presentations rather than from reading,” Spectrem president George H. Walper Jr. said in a statement. “There are videos that have a long shelf life and those that are more immediate, but investors are interested in watching them and will return to web sites that offer the videos they want to watch.” (For related reading, see: How a Website Can Grow Your Financial Advisory Firm.)
Most Popular Video Topics
Advisors have the opportunity to offer a variety of videos on their web sites to reach investors. While stock tips are out of the question, informational videos and those that cover current financial events are in compliance with regulations as long as they do not give specific advice.
The most popular financial videos present straightforward financial information, Spectrem found. Seventy-percent of investors who watch financial videos prefer the basic financial information that is presented. About half of UHNW investors who watch financial videos also watch videos on current financial events and videos from financial commentators.
Financial Web Sites vs. YouTube
Investors prefer videos on the web sites of trusted financial authorities vs. chasing a topic on YouTube, the research shows. Only 20% of UHNW investors, for example, go to YouTube to watch financial videos. Here is a breakdown of the types of videos UHNW investors watch on financial web sites:
Financial information videos (70%)
Videos on current financial events (52%)
Videos by financial commentators (49%)
Videos on stock tips (22%) (For related reading, see: Top Digital Marketing Tips for Financial Advisors.)
Almost a third of millionaires (those with a net worth between $1 million and $4.9 million) watch videos on financial web sites. They watch the following types of videos on these sites:
Financial information videos (73%)
Videos on current financial events (50%)
Videos by financial commentators (47%)
Videos on stock tips (20%)
Not for Young Investors Only
Younger investors are not the only generation watching financial videos. Among UHNW investors who are older than 70 years, 37% watch videos on financial web sites. More than half of those watch videos on current financial events. This compares to the more than half of Millennial and Gen X investors who watch financial videos.
Spectrem points out that while Millennials are not as active in investing as older generations, advisors can use video presentations to educate them on investing and how it can benefit them. (For related reading, see: Do's and Don'ts of Digital Marketing.)
Spectrem also maintains that it is important to update or alter videos, as investors who are active on the Internet hate static web sites that do not change their content frequently. Financial advisors should consider having a staffer dedicated to videos to consistently maintain and update them to keep investors engaged and coming back for more.
The Bottom Line
Advisors who overlook videos are missing out on attracting potential clients and engaging existing ones. A substantial number of investors want to watch financial information videos, videos on current financial news and videos with financial commentary. Advisors should also take note that this ready-made audience of investors prefers videos on trusted financial sites versus watching them on YouTube. (For more, see: 4 Top Tech Tools for Understanding Clients.)
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