For mutual funds, is social media a game changer or just a game?

Dustin Jacobsen

Attendees of the MFEA conference in Chicago last month were given some valuable insights into the importance of social media strategies and much more. Presenter Dustin Jacobsen, who leads Barkley on digital, mobile, social and emerging technology projects, shared his insights about  the pros and cons of a developing a robust social media strategy.

There’s no question social media has come a long away in just a few short years, but the jury is still out on the benefits for the mutual fund industry. Along with Jacobsen, we’ll be tuned in to see whether the pros will outweigh the cons, and the compliance hurdles.

Here is his take on the Pros and Cons of social media today.

Pros
Social Media has gone viral. Everyone’s doing it. And the smart money is on that trend continuing.

Viral marketing starts in the social space. A well-executed social media presence has the potential for making your fund “go viral.” Can you afford to miss out?

Writing informative blogs on timely topics may be one of the best strategies for leveraging social media. Today’s news cycle refreshes every minute. Blogging can be a great way to attract instant internet traffic and potential new investors by commenting on current events as they relate to your fund.

Social Aggregator software is available. Free or inexpensive cloud-based software is available that instantly aggregates your activity on one social media site to all the others. So at least you’re not posting the same thing ten different ways.

Cons

A Game of Cat and Mouse. There are literally hundreds of social platforms. Only a few stand out in the crowd at any given time. Today, FaceBook, Twitter, YouTube and LinkedIn are the four horsemen. But watch out…FourSquare and Digg are on the rise.

No Free Lunch. Social Media is fast-paced. The most successful strategies require regular, daily activity. Tweeting can be a full time job.

A Popularity Contest. The trick is generating ongoing content which is necessary for attracting more traffic, which you’ll need if you’re going to be “liked” and attract a crowd of followers.

Social Media is like a penny stock.

Any social media strategy offers the potential for going viral, which is like that rare home-run stock pick with a 1,000% return.

But there’s a much more practical, if less glamorous side to social media. Your best clients of tomorrow are using social media today. To start laying groundwork and building life-time relations with tomorrow’s investors, social media is probably a good place to be right now. According to Jacobson, “only time will tell.”

by Marilyn Dale