Spectrem’s Ethnic Segmentation Series report Using Social Media and Mobile Technology in Financial Decisions reports on the social media habits of investors from three ethnic backgrounds – African-American, Hispanic and Asian. Across the board of social media sites, the Hispanic and African-American investors show a greater interest in usage and participation than the non-ethnic investor group.
According to the study, 14 percent of all affluent investors are on Twitter, the social media site that invites users to “follow’’ other users and, in turn, be followed by other users. The site allows for only 140 characters per message, so information comes quickly to users who spend a lot of time on the site.
While only 14 percent of the general population of investors are on Twitter, 26 percent of Hispanic investors are on the site, and 24 percent of African-Americans use it as well. Asian investors, who report less involvement with all social media sites, only have 15 percent of its investors on Twitter.
Like with most social media sites, it is possible to just sit and watch. Of the investors from the general population who are on Twitter, 47 percent say they use it for observation only and do not share or communicate with it. However, only 30 percent of African-Americans on the site are non-participatory, and only 33 percent of Hispanics just observe on Twitter.
Instead, 23 percent of Hispanics say they are active participants, and 43 percent of Hispanics occasionally share information on the site. Twenty-one percent of African-Americans are active participants and 48 percent are occasional Tweeters.
Many people use Twitter to follow family and friends (68 percent of the general population of investors who are on Twitter) but it can also be used to follow famous people such as athletes and movie stars who themselves offer occasionally tweets. It is also possible to follow political commentators and financial commentators, and the ethnic community of investors is much more into that.
Thirty-three percent of Asian investors followed financial commentators on Twitter (as opposed to 20 percent of the general investor population). Twenty-seven percent of Hispanics and 24 percent of African-Americans follow financial commentators.
Almost half of African-American and Hispanic Twitter members followed political commentators (compared to just 36 percent of the general population).
To read more on the Ethnic Segmentation study, click here