In this article, we will examine the proven benefits of paid social media and how your investment management firm can leverage it for your ETF marketing campaigns.
Is your investment management firm having trouble raising brand awareness and differentiating your ETF offerings from competitors? Are you wondering if there’s a better way to effectively communicate the value proposition of your ETFs and other investment products to potential clients? Are you aware of the value of content marketing but struggle to create engaging and relevant content that resonates with your target audience?
If you’re like most ETF providers, you likely answered yes.
Here’s some great news: there’s a marketing strategy that you can use that will help improve brand awareness, communicate your ETFs’ value to your prospects, and connect to your target audience while keeping them engaged—all at the same time!
We’re talking about paid social.
Paid social media advertising (or, simply, paid social) is one of the most powerful tools in your ETF marketing arsenal. In this article, we will explore the benefits of paid social media ads for ETF marketing, the importance of targeting, and strategies for creating effective ad campaigns.
Let’s hop right in.
Table of Contents
The Challenge of Modern-Day ETF Marketing
ETFs (or exchange-traded funds) are a popular investment vehicle, offering diversification, low costs, and tax efficiency to clients. With all of these benefits, it’s not surprising that ETFs became more popular. As a result, you’ve probably witnessed how your competition increased. In fact, the number of ETFs that are registered in the United States alone from the year 2000 to 2021 has increased dramatically: from less than 100 to nearly 2,700.
This makes it a must for your firm to increase brand awareness, communicate your ETFs’ benefits, and connect to prospects while also engaging them to break out from the sea of sameness and achieve the ultimate goal of raising your assets under management (AUM). Here’s where digital marketing tactics, like paid social media advertising, come into play.
What is Paid Social Media Advertising?
Paid social media advertising for ETF marketing is just how it sounds: it’s the use of ads on social media platforms—like Facebook, Twitter, LinkedIn, and Instagram—to promote your ETF products.
It involves your firm putting ads on your chosen platform—whether it be Facebook, Instagram, Twitter, Reddit, Pinterest, and so on (if you’d like to know more about the purpose each platform can serve in your marketing funnel, book a call with our experts in paid social), and then targeting specific audiences using engaging ad content. The goal is usually to get your prospects to take some action, but sometimes you may simply want to increase brand recognition and recall through your ads.
Paid social media advertising allows you to reach a large audience quickly, and it can be highly targeted, making it an effective way to reach your ideal customers.
Benefits of Paid Social Media Advertising for ETF Marketing
Paid social media advertising has several benefits for ETF marketing.
First, it allows your investment management company to reach a large audience quickly. Social media platforms have billions of active users and paid advertising allows you to reach a significant portion of them.
The most popular social media platform in the world is Facebook, followed by YouTube and WhatsApp. Just on Facebook, you can reach as many as 2.963 billion active users per month (as of January 2023), with 2 billion of them active every day. The global advertising audience on Facebook alone as a percentage of its total active user base is nearly a staggering 70 percent.
In addition to that, paid social media advertising is highly targeted. You can select your ETF ads’ target audience based on factors such as age (e.g., adults), location (e.g., United States), interests (e.g., Stock market index, Investopedia, Dave Ramsey), languages, and so on. You can also create custom audiences by bringing in data from other sources. This targeting allows you to reach the people who are most likely to be interested in your ETFs.
You can leverage this power by closely examining the demographics of your existing clients as well as your target clients. For instance, although the demographics of ETF investors vary depending on the region and country, most ETF investors tend to be highly educated (i.e., have at least a college degree), are more likely to be single or have kids at home, and tend to be in the early stages of their career.
Knowing all of that valuable information, if your firm wants to, you can easily set up your paid social media ads to be shown to users whose demographics match those criteria. On the other hand, knowing that the ETF market is becoming more and more diverse, you may also go the other way and target potential investors from other racial and ethnic backgrounds.
Lastly, paid social media advertising is very cost-effective. You can set a budget and a timeline for your ads. You may even pay only for the clicks or impressions that your ad receives. All in all, this means that your investment management firm can get tons of exposure for a relatively small investment.
The Importance of Targeting in ETF Advertising
Targeting is an indispensable part of ETF advertising. You want to reach potential investors who are most likely to become interested in your ETFs. This means you need to target users who are interested in growing their capital.
But more than that, you also want them to be qualified investors, which means that they should have the resources to actually invest. Here’s where targeting people who come from a certain social class or have a certain income level comes in handy.
Social media platforms offer a range of targeting options, allowing you to select the audience of your ads based on certain factors. This includes users’:
Effective targeting ensures that your ETF ads are seen by the users who are most likely to be interested and to actually afford to invest in your ETF. Thus, effective targeting leads to higher click-through rates and conversions.
How to Create Effective ETF Social Media Ad Campaigns
Creating an effective ETF social media ad campaign requires careful planning and execution. Here are some steps you can follow:
Define your objectives: What do you want to achieve with your ad campaign? Do you want to increase brand awareness, generate leads, or drive conversions?
Define your target audience as precisely as possible: Who are you trying to reach? What are their interests, behaviors, and demographics?
Create compelling ad content</b: Your ad content should be visually appealing and grab the viewer’s attention. It should also clearly communicate your message and value proposition.
Choose the right ad format: There are several ad formats to choose from, including image ads, video ads, carousel ads, and more. Choose the format that best suits your ad content and goals.
Set your budget wisely: Determine how much you want to spend on your ad campaign and set your budget accordingly.
Regularly monitor and optimize your campaign: Monitor your ad performance and make adjustments as needed to improve your results.
Start Leveraging Paid Social Media Ads For Your ETF Marketing
Working with an experienced social media advertising agency, like Zero Company, can help you achieve even better results. Our paid social team stays up-to-date with the latest trends in ETF digital marketing and social media advertising to help ensure that your campaigns are effective yet cost-effective.
Ready to take your ETF marketing to the next level?
Book a free consultation to learn how our social media advertising experts can help you create effective campaigns for growing your AUM!