Institutional investors are increasingly turning to social media, particularly LinkedIn, to source information that can be used to inform their investment decisions, according to research from Greenwich Associates.
Of 256 investors from the US, Europe and Asia polled by the firm, 80% say that they use social media as part of their regular workflow, with nearly a third revealing that information obtained through these platforms has directly influenced an investment decision or recommendation.
Nearly half of respondents say that something that they have seen on social media has at least prompted them into additional research, while a third have used information to help make a decision on whether to work with a particular client or company.
LinkedIn is the most popular platform for work-related purposes, used my more than half of respondents. Facebook and YouTube are the most popular platforms when it comes to personal use but have also gained traction in the professional space for group discussion and video distribution.
Meanwhile, the survey shows that Twitter is seen as having some value as a news feed in seeking opinions and commentary on market events, but LinkedIn feeds are considered better targeted as they more closely reflect professional ties.
Dan Connell, head, market structure and technology, Greenwich Associates, expects the trend to continue: "With approximately 40% of the institutions globally expecting to increase their use of social media in the coming year, we’re projecting a further, rapid increase of social media influence in institutional investment markets."