There are marked differences between social media usage of investors based on wealth, a new Spectrem study on wealth segmentation reveals.
In its study, Using Social Media and Mobile Technology in Financial Decisions, Spectrem founded out just how investors use social media, determined which sites are most popular, and found out how those investors use the social media sites once they are on them.
Among Mass Affluent investors with a net worth of $100,000 to $1 million, 67 percent have Facebook accounts, 38 percent are on LinkedIn and 33 percent are on YouTube. Only 16 percent have Twitter accounts.
Meanwhile, Ultra High Net Worth investors with a net worth between $5 million and $25 million are far less interested in Facebook (50 percent to Mass Affluent’s 67), but more invested in LinkedIn (42 percent to 38). Only 27 percent of UHNW investors use YouTube and only 11 percent use Twitter.
(To see the entire report, click here)
UHNW investors spend less time in the chase for movie star news than Mass Affluent investors. While 43 percent of Mass Affluent Twitter users follow movie stars, only 19 percent of UHNW investors do so. The UHNW investors are more interested in news commentators (29 percent) and political commentators (26 percent) than in movie stars (19 percent).
Interestingly, UHNW investors think Twitter is more likely to give them financial or investment news than LinkedIn. Asked to use a 100-point scale to rate each social media site for the possibility of using it to acquire financial information, Twitter ended up at 18.84 (with 0 being “not at all’’ and 100 being “very likely”) while LinkedIn was at 15.39 and Facebook was at 10.56. YouTube actually rated very close to Twitter at 17.45.
Young investors are more invested in LinkedIn than any other age group. Among investors under the age of 49, 62 have LinkedIn accounts and 56 percent use YouTube, but only 50 percent are on Facebook. The youngest investors do use Twitter more than any other age group (38 percent to 11 percent overall).