MARKETING MATTERS

Social media marketing: Worth it?

BY DAVID R. PETERS, CPA

I read a blog post recently where the author

said social media platforms like Facebook and Twitter had become nothing more than another place for companies to shamelessly plug their products. While I am not yet willing to condemn these websites for abandoning their morals, I have to admit that my LinkedIn account looks more like a billboard for products and services now than it used to.

Social media has seemingly crossed a threshold in recent years from a place to interact with friends, family and colleagues to a more legitimate marketing channel. Companies have started hiring social media specialists, tweeting regularly and creating YouTube channels. With more than 27 percent of total U.S. internet time being spent on social networking sites, according to Hubspot.com, it is clear that social media represents a tremendous opportunity to interact with clients. However, the social media space is crowded and your clients’ attention spans are limited. Can social media be a viable part of your marketing mix?

In contrast to many marketing experts, I don’t prescribe social media as a cure for every business need. The numbers indicate that the effectiveness of any social media program depends on your target market, approach and timing.

NOT EVERYONE USES SOCIAL MEDIA EQUALLY

A 2013 study by the Pew Research Institute found that 74 percent of people in the United States use social networking sites, which is high. But before jumping on the bandwagon, you need to dig into the details. This percentage is pulled upward by younger users. Use among older age segments has grown, but it is still only 65 percent for ages 50 to 64, and then 49 percent for those 65 or older. If your client base is more concentrated in older age segments, such as retirement planning clients, for example, the advantages of using social media become much less clear. If your social media efforts only reach about half your clients, you need to consider whether this is worth your time and marketing dollars.

NOT ALL SOCIAL MEDIA IS THE SAME

We tend to group social media together into one large category, yet Twitter, YouTube and Facebook are certainly not the same thing. According to the 2016 Global Social Media Research Summary, people access Facebook around eight times per day; the Pew Research Center found the Facebook usage amount among adults is 71 percent. Compare this to 28 percent usage of LinkedIn and 23 percent usage of Twitter, and it is clear that Facebook rules the social landscape.

In spite of these overwhelming numbers, some experts have said that YouTube provides a better connection with clients. However, a recent research study in Information & Management found that people generally learn more when they are actively engaged with the presenter in the video. In other words, the level of active interaction by the viewer makes video interaction higher quality, not necessarily the medium itself. Therefore, the effectiveness of video media is not guaranteed to be better. The bottom line in all of this is that companies need to consider which social media platforms their customers naturally use, as well as which platforms would be most appropriate for their message.

TIMING IS EVERYTHING

A recent study reported on the Forbes website suggests that posting to social media during commuting times (late afternoon) and dinner time will result in a higher chance of your post being read. Again, these findings highlight the importance of knowing your target client base. If you are targeting working people, posting in the middle of a weekday will be less effective than posting during the drive home. Have you ever been in a crowded elevator or bus during rush hour, and seen everyone looking at their Facebook page on their phones?

These considerations only touch the surface, but the overarching message is clear: Go to where your clients are! If your clients don’t use social media, you shouldn’t either. Success in social media is more a matter of figuring out which platforms your current and potential clients use and when they are most likely to be looking at them. It is less about being technically proficient, and more about simply knowing your client base. n

DAVID PETERS, CPA, is the strategic relationship manager and financial advisor for Carroll Financial Inc., in Charlotte, N.C. He is also an adjunct professor in accounting, insurance and ethics, a doctoral student in financial planning and sits on the Disclosures Editorial Task Force. dpeters@carrollfinancial.com connect.vscpa.com/DavidPeters carrollfinancial.com

The information discussed herein is general in nature and provided for informational purposes only. There is no guarantee as to its accuracy or completeness. Nothing in this article constitutes an offer to sell or a solicitation of any offer to buy any type of securities. Registered Representative of and securities offered through Cetera Advisors Network, LLC, Member SIPC/FINRA. Advisory services offered through Carroll Financial Associates, Inc., a Registered Investment Advisor. Carroll Financial and Cetera Advisors Network, LLC are not affiliated.