How financial brands can use social advertising

Before making an investment decision, more than half of offline investors gather information online.

According to RRD study, more than half of consumers discovered a new brand, product, or service in the previous year through both word of mouth and social media.

These numbers demonstrate how social media can be a veritable treasure for financial services companies aiming to acquire consumers and encourage long-term success.

But only if they use it correctly.

Financial services marketing is frequently limited in its ability, partly due to traditional advertising tactics, but primarily due to tight regulatory compliances that must be met.

Here are six tips to master social advertising for a powerful marketing impact.

Engage with influencers
Many individuals did not take influencer marketing seriously when it was first introduced. However, it has already grown into a multibillion-dollar sector that is altering how marketers connect with their customers.

Financial services companies are generally suspicious about influencer marketing because they assume the majority of their target audience is older.

However, Generation Z accounts for more than 40% of worldwide consumers. Surprisingly, 34% of Gen Z are learning about personal finance on TikTok and YouTube.

The greatest method to reach this group is through social media, namely through influencer marketing.

Influencer marketing is especially important for finance firms that want to reach and influence tech-savvy and younger consumers.

Always go with an influencer that is well-versed in the finance field.

As previously noted, the banking industry is dense with technical processes and jargon. You should collaborate with an influencer who can help explain these terms to the general public.

Perform in-depth audience research
Reaching the correct audience is one of the top problems for 42% of financial service marketers.

The accuracy of your audience persona determines the success of your advertising effort.

All future decisions will be guided by your audience statistics. As a result, you must verify that your client profile is based on exact and reliable information.

Even social media ad campaigns necessitate the inclusion of your consumers' age, gender, and geographic information so that your advertising are displayed to the appropriate people.

Begin by determining the age, gender, location, and other similar demographic characteristics of your target audience. You can get a lot of this information by looking at your social media handles.

Also, try to learn about their interests and challenges so that you can develop messages that are appealing to them.

You can do this by directly asking your customers via surveys.

Choose your platform wisely
Would you consider marketing at Pizza Hut if your target client frequents Burger King? Obviously not.

The same holds true for social media marketing.

As you can see, social advertising is not free. As a result, you must guarantee that your ad reaches the correct people in order for your efforts to provide meaningful value for your finance brand.

And for that, you must identify and select a social network where your target customers spend the majority of their time.

If you want to reach a married millennial female audience, you should go to Pinterest. If you want to reach Generation Z, you should stick to Snapchat, TikTok, and Instagram.

Create material that you know your target audience will enjoy.

Perform tests to optimise ad performance
Have you ever prepared a meal for significant guests? If you have, you understand how critical it is to taste-test the cuisine before serving it. The same is true for your advertisements.

Your commercials have a core goal: to make the correct impression on the viewer.

You must test them before releasing them to ensure that they do so.

The financial services sector makes up over 14% of online advertising spending. This shows how much financial brands spend on ads. You have to make sure every penny is worth it by testing your ads.

Ad testing involves creating different variants of the same ad and testing to see which one performs better. It gives you insights into which of your ad concepts are working and what needs to go.

Make at least three variations of a single ad to ensure you have adequate data to inform your decisions. Stick to modifying only one part of the ad for granular insights. While you change more than one factor, you may become perplexed when attributing the consequences to the elements.

Always stick to your brand
In all businesses, trust is essential. However, it is extremely significant in the finance industry.

61% of individuals are unlikely to utilize a new financial brand.

To ensure that people can recognize your firm from its branding features, you must first develop your brand and then keep to it.

Would you recognise Facebook from its trademark colours? Apple? Microsoft? Twitter?

People believe in brands, not enterprises. As a result, when establishing and operating social media ad campaigns, stick to your brand. If your ad creatives do not match your usual branding, no one will identify you.

Prioritise quality visual content
We've said it before, but it never hurts to say it again: social media attention is limited.

People prefer bite-sized content.

Nobody has time to read through long blocks of material.

Our brains process visual content more quickly and easily. As a result, when producing social media ads, prioritize high-quality visual content.

Furthermore, simply including pictures is insufficient.

Your social media ad may only have 10 seconds to make an impact in some cases. As a result, create visually appealing, easy-to-remember visuals that convey your message quickly.

In financial services marketing, trust is already a scarce commodity, and you cannot afford to lose any more of it.

As a result, keep your products as transparent as possible, educate your customers, and communicate with them in a language they understand via a medium they respect.