This article will help you learn useful tips for success in using paid social for ETF marketing that will leverage paid social media platforms and maximize your return on ad spend.

Exchange-Traded Funds (or ETFs) are currently one of the hottest choices for financial instruments of investors who are hoping to diversify their assets. This is because, just like mutual funds, ETFs consist of a wide spectrum of assets that include bonds, stocks, commodities, and market indexes.

What Makes ETFs Attractive to Investors

Because an ETF doesn’t put an investor’s eggs in one basket (as the idiom goes), ETFs offer great risk management. This investment vehicle also offers great flexibility for all kinds of investors. And since most (if not all) markets around the globe have now fortunately recovered from the economic turmoil caused by the COVID-19 pandemic, more and more people are looking for a good investment, and an ETF is one of their top choices.

Just as the demand for ETFs has grown in recent years, so has the need for better marketing strategies risen. So, how exactly can your investment management firm attract these investors and earn their trust?

What Makes Social Media (and Their Paid Ads) Powerful

One of the best available strategies that your asset management company can use is paid social media advertising. Often called just paid social, it harnesses social media, a powerful modern marketing tool that boasts a massive user base. In fact, in 2022, there were approximately a whopping 3.96 billion users who are active on social networking sites. This number is expected to rise as more and more people use mobile devices and as social networks gain more active users throughout the globe.

In addition to their enormous user base, paid ads on social media also allow businesses, like your investment management company, to micro-target certain demographics. Last but not least, paid social media makes it possible to have an amazing two-way interaction between advertisers and your target audience. This promotes engagement and helps in building credibility and gaining investors’ trust.

All of these incredible advantages of a paid social media campaign make it an effective marketing tool that can help your firm increase your assets under management.

Tips For Effective ETF Marketing Using Paid Social Media

Whether you’re an established investment firm, a new ETF provider, or a freelance marketer venturing into the financial industry, there are essential things you can do that will help you make the most out of paid social media in marketing your ETF. Let’s unpack powerful tips for capitalizing on your ETF paid social media advertising:

identify audience

ETF Paid Social Media Tip #1: Precisely Define Your Target Audience

Just like any marketing strategy, accurately defining your target audience is vital to your paid social media campaign. This is because the outcome of your paid social strategy will rely heavily on how well you’ve targeted your audience. This starts early in the campaign, from the time that you choose which specific social media platforms to advertise on.

Since you’re advertising an investment vehicle (i.e., ETF), you must take a look at the demographics of most ETF investors. An article published by Reuters reported that ETF investors have an average age of 53 and own investable assets worth $1.1 million. Based on this, it would be sensible to focus on getting paid social media ads on social media sites where people in their 50s are more active (like Facebook), rather than sites that are more popular among teenagers (like TikTok). Also based on this, you should make sure to target users with a higher income level, since they’re more likely to have a higher amount of investable assets.

The more you know about your ideal customer profile—your target ETF investors—the better. Use all the knowledge that you have about them in targeting your paid social media ads to make sure that your ads are seen by users who are qualified to be your ETF investor.

Social media platforms have numerous ad targeting fields, enabling you to create customized audience segments based on factors like age, gender, location, job title, interests, education level, and more. Fill out as many of these factors as possible to effectively micro-target your potential ETF investors.

customized audience segments

The more you know about your target ETF investors, the better you can create paid social media ads targeted to them.

Other important things you should know about them besides their demographic data are their investment objectives and risk appetite (or risk tolerance). Armed with the knowledge of these, you can create ads with the right messaging that will appeal to and resonate with your target audience. For example, if your target ETF investors have a low-to-medium risk appetite and are more interested in moderate but stable returns, you should ensure that your ads emphasize the stability of your ETF offering (compared to riskier investment options) and include statistics illustrating its moderate but consistent returns through the years.

If you haven’t done so, investing in some market research can be very helpful in helping you identify your ideal customer profile. You can either outsource this to a market research firm or do it yourself by reviewing industry trends, analyzing other ETF providers, and examining data on your current ETF investors.

ETF Paid Social Media Tip #2: Create Irresistible Advertising Material

After you’ve defined your target audience with as much detail as you can, it’s time to develop your ads! Here are the essential elements in creating successful creatives for your ETF advertising campaign:

High-Quality Visual Creatives

The visual elements of your ad are paramount in grabbing the attention of your target audience. You need to use images, videos, or any other media that are of the highest possible quality. This means no blurry images or poorly edited videos.

Make sure that your visuals are relevant to your ETF. Ideally, they also should align with your brand identity, so make sure that your brand colors, fonts, and other branding elements of your investment management company are used properly.

Clear and Crisp Copy

Your ad copy—the text that goes along with your ad creative—should be compelling, clearly written, and easy to understand. It should be concise rather than lengthy, since people have a short attention span, especially when they’re on social media.

Make sure that your copy includes the major advantages of your ETF. Avoid using financial jargon and complex financial terms. Focus on the benefits of your ETF to investors, rather than its features. Ask yourself how investing in your ETF can improve an investor’s life, and develop the copy based on that.

Persuasive Call to Action

call to actionLastly, your paid social media ad must have a powerful call to action (CTA). It should clearly direct users into doing your desired action, whether that’s clicking to visit your website, downloading a free investment e-book, or booking a call to talk to your investment advisors.

Just like the copy, write your CTA with clear, conversational words. It’s recommended that you include some urgency to coax your audience to act right away. For example, set a deadline for booking a free call with your advisors or a limit to the number of people who can download your free e-book.

The visuals, copy, and CTA are all essential elements of your paid social media campaign.

Final Tip in Using Paid Social Media Ads For ETF Marketing

Paid social is a powerful advertising tool for ETF marketing. Although it seems simple enough to set up a paid social campaign, it requires preparation and focus on several important elements.

If your asset management company requires any assistance, consider working with an experienced digital advertising agency like Zero Company Performance Marketing. Our online marketing company has more thantwo decades of experience in providing digital marketing services, including paid social media, PPC advertising, and more.

Book a free consultation with our team’s experts in paid social today!