White Paper

FTI Consulting and LinkedIn

May 11, 2012

Neil Benedict

Managing Director, Strategic Communications

Emily Friedman

Researcher, LinkedIn

In a mere handful of years, social media has fundamentally changed
how individuals and businesses communicate. Marketing
communications have shifted from one-way conversations to dynamic
social communities — thus transforming social media from a tangential element of business strategies to a decisive game-changer.

Among financial advisors in particular, social media has quickly
become a critical business tool. With a business that is fueled principally
by networking, advisors are increasingly integrating social media as a
core element of their marketing efforts. This comes as no surprise, given
the adoption rates of their prospective clients: According to Forrester
Research, two-thirds of U.S. online adults with an investment account
now have social network profiles.

Facing a competitive disadvantage of being left behind by earlyadopter peers, advisors are inclined to improve their understanding of how best to leverage social networks for business. However, with obstacles like securities regulations and company compliance policies, financial advisors arguably have more barriers to adoption than professionals in other industries. Despite these challenges, advisors are finding ways to effectively work within the parameters of compliance.

For financial advisors who use social media, LinkedIn’s platform is key — particularly due to its professional context and growing audience of valuable financial consumers. Perhaps more significant, however, is that advisors are able to leverage the LinkedIn platform in a way that parallels and enhances their traditional business cycle. Simple opportunities, such as utilizing one’s full extended network for possible leads, provide advisors with now imperative resources to be more efficient and effective.