Social Media Influences Investment Decisions
A new survey from Cogent Research found that US investors are highly engaged in social media, and their investment decisions are being influenced accordingly. The study found that 25% of US online adults are engaged in social media specifically related to personal finance and investing.
Furthermore, almost two-thirds of high-net-worth investors—defined as those with $100,000 or more in investable assets— claimed online peer-generated content about personal investing and finance has an influence on their financial purchasing behaviors and decisions.
“Today’s companies can no longer sit on the sidelines when it comes to social media,” Christy White, chief of operations at Cogent Research, told Business Wire. “Purchasing decisions are being influenced by what investors are seeing on blogs, message boards and videos, and financial services companies will increasingly feel the impact on their bottom lines. The question firms should be asking is not ‘if,’ but ‘how quickly’ they can engage in social media.”
At first I was surprised by the results of this survey, but when I thought about it for a while it made sense. We all want peer acceptance for our decisions. Whether it is buying a car, house, or cell phone, we want acceptance that we made a good buying decision. So why should stocks be any different? When we make a stock decision, we want to hear the applause of our peers. Social media financial networks, give us that positive feedback that we made a goof decision, that a lot of people are looking for.
Do social media financial networks impact your investment decisions?
Filed under Social Media Marketing : Comments (0) : May 21st, 2008
