Firms Dial Up Advertising to Draw Market-Shy Investors
Previously published on April 3, 2023 in
By Michael Taffe, Reporter, Financial Advisor IQ
Market turbulence may prompt wealth management firms to rethink their approach to advertising, marketing executives say.
Firms tend to push money market funds and yield-bearing accounts as safe havens during economic downturns and periods of market uncertainty, said Binna Kim, CEO and founder of Group Vested, a marketing firm that serves financial industry clientele.
“There are definitely a lot of financial brands that have started to put more money into opportunistic advertising,” she said.
But capturing a competitor’s disaffected clients is largely a game of accessibility, said Kim. Jargon has long been a hurdle for investors to sign on with an advisor, and describing investment services in familiar terms can set firms apart.
“I think people are confused. I think people get scared, especially in this kind of a market environment,” Kim said. “So, the big challenge that we’ve thrown on to our clients and advisors is simplifying.”