fund marketing: a millennial’s perspective · millennials are a population of young men and women...
TRANSCRIPT
Fund Marketing: A Millennial’s Perspective
FUND MARKETING - A MILLENNIAL’S PERSPECTIVE2
IN THIS WHITE PAPER
Robo-Advisors
Advertising
Infographics
Sarah MardineyDigital Engagement Intern
For fund managers working in
a digital age, advertising is
changing drastically“ Wikipedia characterizes the “Millennial” generation as including
individuals born between the early 1980s, continuing until the early
2000s. Millennials are a population of young men and women raised
alongside the internet, developing and maturing with the technology.
Millennials are digitally-native, narcissistic, and anxiety-ridden.
I should know; I am one.
I was born in 1994, and cannot remember a time
when there was not a computer in my household.
On September 11th 2001, I was only in the second
grade. I remember my mom purchasing her Þrst
cell phone. I remember making my Þrst MySpace
page (without parental permission) in 2006. I can
learn the ins and outs of any social media site in
minutes. IÕve been taking selÞes for years. I know
very little about Þnancial data.
Introduction Introduction
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Much of the Þnancial data I encounter is confusing, dense, and maddeningly
boring. (We millennials are noted for our shortened attention spans, after
all.) When it comes to understanding information dealing with loans,
investments, or credit, it helps to have the data visualized. Infographics are
not only eye-catching and aesthetically pleasing, but they render
information in a way which is understandable; perfect for those of us who
were raised doing much of our learning using the internet.
Infographics can and should be utilized by asset managers, especially on
social media. Clients of all ages can appreciate how infographics alleviate
the task of understanding facts and Þgures. When scrolling down oneÕs
Facebook or Twitter feed, for example, an individual is more likely to pay
attention to and absorb information displayed on a colorful infographic with
descriptive pictures as opposed to long paragraphs of data. Social media
sites like Twitter, Instagram and Facebook, after all, are platforms designed
with the affordance of easily displaying and sharing pictures. Asset
managers are encouraged to use these affordances to their advantage.
Infographics and Financial Data Infographics and Financial Data
Digital Marketing at Asset Management Firms Digital Marketing at Asset Management Firms INFOGRAPHIC
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Social Media and Asset Managers Social Media and Asset Managers
It is no secret that millennials are the kings and queens of
social media. According to a 2013 study by Pew Research
Center, 90% of internet users aged 18-29 use some form of
social networking. Asset managers who do not have a social
media presence, therefore, are ignoring a huge population
of possible clientele. At the bare minimum, a Þrm should
have one (or all) of the following: a LinkedIn Company Page,
Twitter account(s), and possibly a Facebook company page.
The more social media sites that are utilized by a Þrm, the
more digital engagement you will be likely to receive.
Marketing to a younger demographic is essential, as the
millennial generation begins to enter the work force. As a
millennial, I can assure you, social media is an integral part
to how my generation consumes news, advertising, and how
we provide (valuable) feedback to companies.
To elaborate: I stay up to date on current events through
CNN’s mobile app, Facebook’s trending stories sidebar, or
Vice News’ homepage. I communicate with peers about
assignments through various messenger apps and sites. I am
notiÞed about what my favorite musicians and politicians
are up to through their social media proÞles. Much of my
shopping and banking is done online.
It is crucial, therefore, that asset managers maintain an
active and organized online presence (whether it be a web
page, social media site, or both). Creating a Facebook,
LinkedIn, or Twitter account for your Þrm is a great start.
But, if you want to draw in clients from a speciÞcally
younger demographic, posting content (such as
infographics) to your social media sties will be a great help.
By doing this, you will have not only better informed
clientele, but demonstrate that you value their feedback
through active engagement. In addition, social media is
free marketing! Maintaining a social media presence can
help you acquire new, younger clients.
On the next page I will provide examples of Þrms and
Þnancial companies who are using social media
infographics to their advantage.
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Schroders Investment Management tweets infographics on a regular
basis that are crisp, thematic, and most importantly, instructive.
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JP Morgan Chase & Co. should be praised for the variety of infographics they utilize. While
there is not an abundance of infographics on their social media sites, the ones JP Morgan use
are informative and display a range of stylistic elements including variations in color, images,
and the amount of data displayed. In addition, they use these images to market their hashtags.
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Wells Fargo Asset Management’s infographics are mostly graphs and charts. While these
infographics are good at visualizing data, they still take time to analyze and understand. However,
the graphs quickly convey general trends. Wells Fargo uses their graphs to “advertise” their posts
which discuss the Þgures displayed.
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Citi’s infographics lack a presence on Facebook, but have a pretty good selection on Twitter. As
you can see, the infographics do not convey a lot of information, but have a simple, streamlined
design. This, along with the short captions help to make the info clearly interpretable. These
infographics lack artistic sophistication, yet succeed in transferring facts and Þgures.
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Bank of America Merrill Lynch does not have an abundance of infographics on their Twitter –
instead, they have many sophisticated and informative videos. However, every once in a while,
they will post an infographic which excels in creativity. Unlike some of the other examples
we’ve looked at, the design for their videos and infographics are more artistically driven
(color-coding, symbolic visualizations).
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State Street does not utilize graphics so much for the displaying of information, but instead
pair short fact phrases with graphic design. By tweeting these images, they succeed in
disrupting the monotony of their Twitter feed. However, State Street’s images are not quickly
digestible. Some examples are provided below. State Street also displays infographics once in a
while in the form of line graphs, which are more understandable.
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T. Rowe Price is one of the more active producers of infographics on their Twitter (not so
much on their Facebook). T. Rowe Price produces a simplistic infographic about once a week.
Their infographics typically display one statistic, and are quick and easy to understand. A great
marketing strategy they use is that their infographics prompt viewers to visit their website
and read blog posts.
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Close Brothers Asset Management feature great infographics not only on their Twitter page,
but also on their LinkedIn. LinkedIn is a great resource for asset managers who want to market
their brand and network with clients, as well as share infographics like the ones below.
LinkedIn also provides a more personal experience on a platform which encourages new
connections.
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Fund Managers & Advertising Fund Managers & Advertising
Print advertising or word-of-mouth is simply not going to
be effective in maintaining client relationships in today’s
online world. Effective advertisements can attract clients, as
well as develop a brand image which will build lasting client
relationships. Marketing is a way for fund managers to
translate the goals and values of their Þrm in a visual,
tangible way. “Many people believe that marketing is just
about advertising or sales. However, marketing is
everything a company does to acquire customers and
maintain a relationship with them.”
For fund managers, a huge part of marketing is
generating advertisements. These ads can take a variety
of forms; there are print ads, billboard ads, ads in the
subway, Twitter ads, pop-up and sidebar ads, and many,
many more.
As a result of this advertisement inßux, third party
marketing services are becoming more lucrative, as they
provide a “consulting service to hedge fund managers who
need the expertise of seasoned marketing professionals.
[They] employ experienced investment marketing and
sales experts, and raise assets for hedge funds.”
Advertising is obviously essential in today’s world for any
company that wishes to make their name recognizable and
their business proÞtable; luckily, there are a number of
ways for hedge funds to develop ad campaigns, hone in on
a brand image, and start recruiting new clients.
However, according to an analysis by Hoovers.com, larger
funds are not using their larger marketing budgets to their
advantage. “An analysis of the top 30 institutional asset
managers (as deÞned by Hoovers.com) conÞrmedÉ larger
Þrms were no more successful at differentiating
themselves than their smaller brethren.” What does this
mean for these larger Þrms? One goal of advertising and
branding is to set a company apart from competitors. In
order to do this, marketing content needs to be original
and resonate with viewers. Clients can and should be able
to separate the men from the boys, so to speak, through
the sophistication of a company’s advertisements.
Next we will be taking a look at how well fund managers
(both large and small) are setting themselves apart from
their competition.
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Advertising Budgets Advertising Budgets
Michael Pantanella is quoted in an article by Forbes on fund
managers and advertising, in which he says, “Advertising is
now another tool for hedge funds to get their message out.
What’s very important is that the hedge funds who seek to
beneÞt from advertising have very clear and powerful
messages that are also well targeted.” Well-targeted
advertisements are very important, and some companies
are willing to shell out the big bucks in order to get them.
For example, “Advertising spending by Invesco Perpetual
tripled last year. The UK fund house increased its
advertising spend to £6.2m, making it the third-biggest
advertiser in the UK funds market behind Old Mutual
Global Investors (OMGI) and Fidelity Worldwide
Investment, the biggest spender. OMGI also more than
doubled its advertising spend, to almost £9m in 2014.
Clearly, the marketing departments of companies like
Invesco and OGMI are willing to spend big. While a lot of
the larger fund management Þrms can afford paid
advertisements, it is certainly worth mentioning the Þrms
using social media to promote their brands, free of charge.
Vanguard Investments, for example, were one of the Þrst
to start harnessing the power of social media’s advertising
affordances by “hiring a head of social communications
eight years ago, when other asset managers regarded this
position as a subsidiary of other communications roles.”
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Video Advertising Video Advertising
YouTube is a popular entertainment and information medium among many; especially the Millennial generation. I, for one,
use YouTube to catch up on political debates and commentary programs, to Þnd new music and music videos released by my
favorite artists, to watch the latest movie trailers, to research and listen to user testimonies before making a product
purchase – the list goes on and on.
ÒAsset managers canÕt push individual products as obviously as other brands can because they are bound by regulations
around product promotion. But they can build more general brand recognition using informative, topical and educational
videos.Ó Anyone who has ever used YouTube knows how the platform features ads; there are banners which pop-up on the
bottom of videos, short introductory ad videos, as well as banners at the top of the webpage.
This Advicent (Þnancial advisor) ad appeared before a
video played on YouTube. As you can see, YouTube gives
the option of skipping the ad after 5 seconds.
These ads appear under the search bar on YouTube.
YouTubeÕs platform always lets you know when
youÕre being shown an advertisement.
This very simple rebranding message
for Columbia Threadneedle
Investment appeared on the sidebar of
the YouTube search page
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Hedge funds and fund managers tend to utilize the YouTube advertising methods of pop-ups and banners much less
frequently than they utilize the free video-producing capabilities of the platform. By editing and producing original content
on YouTube, funds are able to bypass advertising fees, while still developing a brand image online. It is important to note that
the following YouTube examples are not examples of YouTube’s ad platform. Instead, these examples are simply good use of
video marketing.
Coronation’s content videos on YouTube have a unifying theme translated
through their slogan: “Trust is earned.” The videos posted by Coronation
appear to have a high production budget, and are intended to evoke
feelings of nostalgia in viewers, and earn legitimacy through small
disclaimers which read: “Based on a true story.” One thing about YouTube is
the platform allows for fund managers to “recycle” old ads, so to speak, by
uploading old television commercials as content.
Perhaps my favorite Coronation advertisement is this video, in which
Coronation uses Vincent Van Gogh as an example of a historical figure
who was a “missed investment opportunity” (as he only sold one painting
during his short lifetime). This ad, which features great special effects and
a Van Gogh lookalike, functions to associate the investment management
firm Coronation with something as high-culture as Van Gogh’s art. This
comparison is supported by some very cool camera effects in which real-
life scenes morph into Van Gogh’s most famous paintings. In this sense,
the advertising is original and effective. Coronation’s production team
deserves props, as all of the firms’ videos are high quality and nicely filmed.
Coronation Fund Managers
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Old Mutual’s YouTube channel content is not recycled TV
advertisements like Coronation’s; instead, Old Mutual uses
YouTube as a way to provide to clients a history of the company’s
“humble beginnings.” There is an emphasis in Old Mutual’s videos
on themes of family, children, and nostalgia for the past. These
themes I believe are not as effective in attracting new customers,
however, will strengthen loyalty and forge a lasting relationship
among existing clientele
One thing that makes Old Mutual’s advertising stand out from
competition is that all of the company’s existing advertisements
are provided on the company’s website. In this way, Old Mutual is making it easy for those who want to know more about the
company’s brand image – that person does not have to scour the internet for ads. Instead, their advertising accomplishments
are displayed in one place.
Although most of Old Mutual’s advertisements are in video form, there
are some print advertisements, although these print ads are not nearly as
interesting nor resonate with viewers in the same way the videos do. For
example, the following print ad continues the theme of families, children
and nostalgia, however, it lacks the aesthetic and design sophistication of
the video ads.
Old Mutual
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Fidelity’s use of instructional videos on
YouTube is notable. If an individual visits
Fidelity’s YouTube page, they will see an
abundance of videos which offer mini-
lessons in finance. These videos describe,
for example, what an ETF is, or what the
basics of roll-over IRAs are. Once again,
while this is not technically YouTube
advertising (the videos were uploaded for
free and are not promoted by YouTube), it
is an ingenious form of brand marketing.
The reason these “Fidelity Learning
Center” videos are so great is that the
company is demonstrating to their clients
that they care about their financial literacy. By helping clients clearly understand concepts like fixed-income ETFs, they are
demonstrating they want clients to be informed about their options and decision making in the financial sector. These videos
are successful because they will attract not only Fidelity customers, but anyone who is perusing YouTube searching for
clarification on financial terminology.
Fidelity
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Social Media Advertising
One major affordance of social media platforms such as Facebook or Twitter are the
interactive capabilities. A great way to “advertise” on social media is to respond to
comments and interact with customers. This not only reinforces existing customer
relationships, but shows visitors site or that the company is actively listening to
customer critique and praise, and genuinely cares about customer feedback. Check
out the image on the right.
Another method of advertising on social media is to be “promoted” by a site such
as Twitter, which essentially means a company pays Twitter to encourage users
to follow or retweet the company. You can see an example below of
Fidelity using this feature. It should be noted however, that this feature
is probably only going to be utilized by fund managers with larger
marketing budgets. While I am not particularly fond of the promoted
Tweets feature as a Twitter user, I do think if a company can afford it,
they should use it to their advantage. Even if it does not succeed in
getting the company a lot of followers, they are still encouraging brand
recognition and familiarity among users of these social media sites;
namely, millennials.
Positive feedback in Vanguard’s Facebook comments.
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Robo-Advisors
Every passing year marks the introduction of a technological advancement
which affords some new form of progressive automation. Members of the
millennial generation, like myself, are no strangers to the integration of robotic
technology in daily life. I remember delighting in the introduction of self-
checkout machines at the grocery store as a young kid, begging my grandmother
to use the machines. Unfortunately, my old-fashioned grandmother never let me
use the self-checkout, as she did not trust the technology to get the job done.
New robotic technology has always
made older generations understandably
uneasy, especially since pop culture
tends not to portray robots in the best
light (who remembers The Stepford
Wives or I, Robot?) Often, robotic
technology is suspected of being too
generalized, and unable to tailor tasks
to an individual’s specific needs.
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Robots: They’re No Big Deal
Millennials, on the other hand, are far more open to and accepting of
the idea of robotic automation, simply because robotic technology,
in some form, has existed for most of our lives.It was only four
years ago, after all, that the world was introduced to Siri, Apple’s
intelligent computer program/personal assistant robot, thrusting
robots into mainstream, every day life.
Siri is by no means the first or only robot introduced in the past
decade. Companies like Toyota, Lexus, Ford and BMW have
developed cars which feature parallel parking automation, allowing
a robot to take over the vehicle and perform more precise parking. To present a more controversial example of robotic
technology introduced within the last 10 years, drone warfare has opened a worldwide debate in regards to the morality of
certain robotic technologies. The future of robotics is approaching quickly; Google is currently developing self-driving cars
with the goal of one day eliminating traffic and car accidents, all together.
Robotic technology, therefore, has saturated many institutions of every day Western life. As technology in the robotics field
improves rapidly, the coming years will no doubt introduce an abundance of new robotic technologies, which the millennial
generation will adapt to and appropriate in a variety of ways.
It comes as no surprise, then, that robotic technology has become extremely popular, as well as useful in the financial
industry. Robo-advisors have become prevalent in the last few years, as robo-advisor programmes “allow consumers to go
online, answer some questions, and receive financial help without having to pay for individually-tailored suggestions.”
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In the modern-day world of Seamless and Amazon Prime, it is no surprise that individuals would want to receive personalized
assistance, free from paperwork or even basic human interaction.
As the millennial generation gradually enters the workforce and accrues wealth, “asset managers and banks [are] looking for
ways to deliver low cost, automated investment strategies in a way which fits with customers’ increasingly digital mindset.”
Seeing as no generation is more digitally-minded than the millennial generation, I thought it would be appropriate to conduct
some research on FinTech’s hottest trend, and offer up my “millennial perspective.”
Betterment scores huge points in terms of ease of access and design. On the
site’s homepage, users are asked to “Start your investment plan” by entering
your age, retirement status, and annual income.
After entering this preliminary info, the user is directed to set goals, which are
recommended automatically by the program based on age and income. My
favorite part about this website’s robo-advice
platform is its design. It is modern, streamlined,
and uncluttered, with small pie charts to easily
display plan
The website breaks down the investment into 3 “priorities,” based on your age and income.
Since my personal profile is 21 years old, making less than 50k a year, this robo-advisor
deems my number one priority to be having a safety net, followed by planning for retirement,
and finally, general investing.
Robo-advisor Platforms
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Charles Schwab Intelligent Portfolios asks users to begin their investment
process by taking a short, diagnostic quiz. The portfolio prompts the
user to answer “12 straightforward questions,” and takes no more than 5
minutes to complete. I like the fact that this quiz is reminiscent of creating
a social media or a dating profile. The quiz really gives a feeling like Charles
Schwab’s robo-advisor is tailoring the profile to the user’s specific needs,
despite not being human.
Some examples of diagnostic questions are shown right. As you can see,
the questions are specifically asking about the user’s financial history and
goals in order to offer the best plan possible.
Another feature I like about the Intelligent Portfolios platform are the
automated recommendations the questionnaire provided. For example,
after asking my age, the program automatically recommended I plan on
saving for retirement for a longer time period, and prompted me to adjust
the settings accordingly. (Turns out I’ll be saving for retirement until I’m
90… thanks baby boomers!)
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WiseBanyan – As a millennial, I feel I would be remiss if I did not mention a robo-advisor featuring the one
quality praised by our generation more than anything else: this robo-advisor is free! WiseBanyan markets itself
as “the world’s first free financial advisor.” Upon entering the site, you’re immediately prompted to enter an email
address so the site can send you an invitation.
Just like Charles Schwab, WiseBanyan has the user fill out a short questionnaire so they can build a personal
finance portfolio.
WiseBanyan actually takes Charles Schwab’s method one step further, by
offering an explanation as to why it is important for the firm to ask these
diagnostic questions. These short explanations are helpful formillennials
who may not be familiar with wealth management or financial terminology,
to understand why a firm would need to know their financial history and
goals. A sample of some of the types of questions are displayed below.
Notice also, how the site features a modern and chic design, easy to read
and easy to navigate.
After the user completes the short quiz, they are given their results in the form of nicely
designed infographics. The user is given a “risk score,” and an infographic displaying
recommended percentages of stocks and bonds.
I like that WiseBanyan offers concrete information which has been organized and easy to
understand through data visualization. Unlike Betterment, which simply offered priorities,
it feels more comfortable to see my financial info quantified in the form of a “risk score.”
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WealthFront features a similar platform to both Charles Schwab and WiseBanyan. Users are prompted to
answer a questions in a short diagnostic quiz upon entering the site, which asks many of the same questions as
the other sites (age, financial goals, net worth, etc.) However, one feature that sets WealthFront apart which I
like, is that after choosing a response from the multiple choice question, a short response pops up to provide the
user with more information on the answer they’ve given. Not only are these short responses encouraging, they
are fantastic marketing. Check out the example below:
After researching so many of these robo-advisors, a lot of the sites I came across began to look the same. A
lot have similar layouts, similar risk scores, and diagnostic questions that are so similar they are almost word-
for-word. This is why, for millennials especially, it is important for a site to have a feature which allows the
firm to stand out. For WealthFront, their defining feature is their results page. WealthFront offers a colorful,
eye-catching infographic to display the risk score, and investment recommendations. This infographic is easily
digestible, and offers a splash of color to the monochromatic aesthetic most financial websites feature.
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Nutmeg Online Investment Management differs from the previous
examples in small, yet significant ways. Firstly, the website’s font is
playful, and there’s a lot more color on this site than others that I’ve
looked at. Color is always a plus for breaking up monotony and making
the question-answering process less dull.
Another aspect that made this site stand out are the options provided for the user from the get-go: the visitor decides
whether they’d like a “general,” “ISA,” or “pension” account, then offers the option of making a goal with the investment
account.
Hands down, my favorite part about Nutmeg’s robo-advising site is
that the template is highly reminiscent of a social media profile. The
site offers options of editing your “Nutmeg Pot,” complete with a goal,
name, and target, positioned at the top-left of the page. It reminded me
immediately of creating a username and short description that would be
displayed on the top/left of social media profiles like Twitter, LinkedIn, or
Instagram. The template is not only easy to read and edit, but the setup
is logical, with name of the users’ “Nutmeg Pot” and target at the top of
the page like a personalized header.
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Upon scrolling down is where the user gets to set more specific timeframes,
contributions, and risk level.
After entering the preliminary info, Nutmeg provides the user with a beautifully
designed infographic displaying their projected portfolio. The site offers detailed
descriptions of the projection, portfolio, and investments. In my opinion, Nutmeg
is the most aesthetically pleasing and coherently designed. The fact that this
financial profile is so highly reminiscent of a social media profile makes it
incredibly translatable and acceptable by a millennial audience. What really sets
Nutmeg’s robo-advisor service apart, for me, is the customization element that
other advisors lacked. Getting to name your own “Nutmeg Pot” and the ease with
which you can edit your timeframe, etc. makes Nutmeg the #1 robo-advisor on my
list.
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