There are new websites being created all of the time, and many of them fall under the category of social media. But the mainstays are the ones that have been around the longest and have an established audience.
Among those most well-known social media websites, YouTube might have the most unique audience. Built as a trove of videos, both those produced professionally and those done by amateurs, YouTube came along just as everyone was buying up smartphones and had video capability at their fingertips.
It also has the appeal for those baby Boomers who grew up with television and want to spend a part of their day in nostalgia, watching clips of those favorite TV shows from long ago.
But YouTube has proven to be more than just clips from the Mary Tyler Moore show, party videos and playful kitten offerings.
It has a vibrant aptitude for transmitting information, and some of that information can be financial in nature.
Financial advisors who want to make sure their clients are properly informed would do well to advance their presence on YouTube, where information is sometimes more easily understood than it is in newsletter articles, or Internet blogs.
For some people, the spoken word is more effective than the written word, and on YouTube, it is possible for investors to get their information through video clips of experts. In fact, approximately one-third of all Millionaire investors use YouTube, and approximately 30 percent use YouTube to watch financial information videos.
In the quarterly report Using Social Media and Mobile Technology in Financial Decisions, affluent investors from three wealth segments reported their social media usage. The wealth segments were Mass Affluent (with a net worth between $100,000 and $1 million), Millionaire (with a net worth between $1 million and $3 million) and Ultra High Net Worth (with a net worth between $5 million and $25 million).
The Mass Affluent report the highest use of YouTube, with 33 percent expressing usage and 21 percent reporting YouTube visits to search for financial videos. Of those that use YouTube for financial concerns, 69 percent look for general financial information, 40 percent look for videos of financial commentators and 46 percent look for details on financial current events.
As wealth increases, overall use of YouTube drops, down to 28 percent of Millionaires and 27 percent of Ultra High Net Worth investors. However, of those that do use YouTube for financial purposes, the percentages are higher, including 76 percent of Millionaires who use YouTube for general financial information and 51 percent who watch financial commentator videos.
Although only 27 percent of UHNW investors use YouTube and only 13 percent use it for financial concerns, almost 60 percent of those watch financial commentator videos and 67 percent of UHNW Business Owners do so.
Eighty percent of Millionaires under the age of 36 watch stock tip videos on YouTube, and 63 percent of UHNW Managers watch financial current event videos.
YouTube is also considered one of the best social media sites for obtaining financial information. Rating social media sites on a 0-to-100 scale, with 100 being very likely to get financial and investment information on that site, YouTube ranked just under LinkedIn among all wealth segments (and higher for those with less wealth).
There is also a need to keep your YouTube information current and fresh. Almost one-quarter of Mass Affluent investors check YouTube at least once a day, and that is true of 19 percent of Millionaires and 12 percent of UHNW investors. More than 30 percent of UHNW investors under the age of 36 check YouTube at least once a day.
“Social media websites are no longer something to think about for the future,’’ said Spectrem President George H. Walper Jr. “Investors use the Internet for financial purposes frequently, and many investors want that information to reach them through video posts. Advisors need to provide video not only on their website but placed on YouTube and other sites as an effective way to communicate with investors.