Millionaires prefer Facebook, so why are financial services firms flocking to Twitter? Put simply: Twitter is easier.

The number of high-net worth individuals using Facebook has doubled in the last year to 46%, according to a report released by Spectrum Group. And ultra-high-net-worth individuals aren’t far behind, using Facebook in similar numbers. Twitter is far less popular among millionaires, with only 3-6% using the site.

But financial services firms aren’t in sync with their top prospects when it comes to social media. A Corporate Insight report released earlier this month found that Twitter use by financial services firms has grown exponentially in recent years, while Facebook use has grown at a more modest rate.

Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).

For previous coverage of social media use by advisors in Advisor’s Journal, see Advisors Get Failing Grade for Social Media Flirtations (CC 11-157), Getting Your Feet Wet in the Social Media Market (CC 11-79), & SEC Says “Not So Fast” to Advisor Social Media Marketing (CC-11-40).

When advisors hear the term “social media marketing,” the usual list of suspects comes to mind: LinkedIn, Facebook, and Twitter. Could Advisor Pages, a new advisor search engine, be the next business boosting social media site like LinkedIn, or will its cost to advisors outweigh any marketing benefits?

The hype surrounding social media marketing has yet to die down, and advisors’ use of online marketing techniques continues to grow. Adding to the panoply of sites relevant to advisors, BrightScope recently launched Advisor Pages, a free online service that allows consumers to search for financial advisors. Advisor Pages compiles data from public sources, including the Financial Industry Regulatory Authority (“FINRA”) and the Securities and Exchange Commission (“SEC”). Search results can be tailored based upon advisors’ names, locations, amounts and types of assets under management (“AUM”), employers, formal complaints, legal disputes and more.

Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber)

For previous coverage of social media in Advisor’s Journal, see Getting Your Feet Wet in the Social Media Market (CC 11-79) & It’s Not Facebook That’s Making Microsoft Obsolete: Advisor Technology Trends (CC 11-49).

Despite the ever-increasing popularity of social media sites like Facebook and Twitter, social media sites just aren’t delivering the way advisors have been expecting. In terms of building brand awareness, social media and cold calling were shown to be ineffective ways of generating new revenue – they tied for last place in the recent study by Advisors Trusted Advisor. The producer-client relationship requires a high level of trust, and the use of social media sites, whether for advertising or networking purposes, can have the tendency of distorting the producer-client relationship. Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).

For previous coverage of techniques to improve advisors’ business in Advisor’s Journal, see Are the Mass Affluent Missing from Your Client Profile? (CC 11-54).