{"id":1240,"date":"2022-04-06T08:24:23","date_gmt":"2022-04-06T08:24:23","guid":{"rendered":"https:\/\/arrocomm.com\/blog\/?p=1240"},"modified":"2023-05-03T04:50:54","modified_gmt":"2023-05-03T04:50:54","slug":"boost-aum-new-tactics-new-media","status":"publish","type":"post","link":"https:\/\/arrocomm.com\/blog\/boost-aum-new-tactics-new-media\/","title":{"rendered":"AUM from the Fringe: How Asset Managers can Leverage \u2018The Alternative Financial Media\u2019 for Exposure"},"content":{"rendered":"

\"AUMFinancial media outlets are considered the crucial intermediary between companies, advisors and investors tasked with the responsibility to disseminate information. As media outlets worldwide have \u201cgone digital\u201d, the number of financial media outlets and their ability to meaningfully impact capital allocation has grown exponentially.\u00a0<\/span><\/p>\n

As a modern financial marketing and PR firm, our role offers a unique vantage point of emergent trends in financial media and we\u2019ve got our eyes on how the \u2018Alternative Financial Media\u2019 is affecting the landscape.\u00a0<\/span><\/p>\n

Asset managers should embrace the Alternative Financial Media to get their message in front of a new generation of investors who are increasingly looking to these outlets for actionable ideas.<\/span><\/p>\n

The Novelty of the Alts<\/b><\/p>\n

We define \u2018Alternative Financial Media\u2019 as mostly independent outlets untethered to the mainstream media that operate, syndicate and host their content on a variety of digital platforms and social media. These alternative outlets are increasingly important due to their expansive reach to new audiences of investors around the world.<\/span><\/p>\n

In order to better understand the scope of these news outlets, we have\u00a0 broken them down into three categories: social media, podcasts and video. Together, these mediums represent new and significant opportunities for asset managers.<\/span><\/p>\n

The popularity of these outlets is most common in retail investing circles. <\/span>Retail investing has been on the rise in the United States, and was further propelled by financial stimulus checks amid COVID-19 coupled with easy access to commission-free brokerages. <\/span>Retail investors are more likely to invest based on their personal interests — and less likely to use traditional market data \u2013 making these outlets an enticing open forum.<\/span><\/p>\n

Social media algorithms have disrupted the traditional role Editors played on these platforms by serving and sorting content in feeds based on recommendations, previous engagement and known preferences: videos watched, articles read, accounts followed, interactions, clicks, and even browser history.<\/span><\/p>\n

Influencers can also play a big role here, as they can reach loyal audiences with more potential impact. Barstool Sports, founder Dave Portnoy, is the perfect example of this; he leveraged his personal brand to create buzz around an index for a product licensed by a prominent ETF issuer.<\/span><\/p>\n

\"SocialSOCIAL MEDIA<\/span><\/h1>\n

While the most popular social media platforms in our space include LinkedIn, Twitter, and StockTwits, we\u2019d like to spotlight Reddit, <\/span>the front page of the internet<\/span><\/i>. Reddit has 3.4 million \u2018subreddits\u2019 or moderated forums dedicated to<\/span> themes and topics. Reddit users (or <\/span>Redditors<\/span><\/i>) are known for their direct, casual banter<\/span><\/p>\n

All contributions can be \u2018upvoted\u2019 or \u2018downvoted\u2019, resulting in a sorting mechanism with equal weights on discussion and content, ranking from most interesting to least in user\u2019s feeds. Redditors are unable to post on most subreddits until they have earned sufficient \u2018karma\u2019\u2014 a numerical score based on upvotes given to their comments upvoted by other users.<\/span><\/p>\n

Redditors are far less likely to engage with branded content. In fact, the most downvoted comment in history was made by a corporate account. A more effective way to market on the platform is to contribute meaningful content and interact with Redditors in relevant subreddits.\u00a0<\/span><\/p>\n

Believe it or not, some of the most popular subreddits are finance-focused \u2014 from novel trading strategies to investment clubs geared toward specific equities \u2014 and serve as digital meeting places where investors can share trading strategies, publish due diligence and analysis, identify market opportunities and monitor investment activity, especially that of celebrities, corporate executives and elected officials.<\/span><\/p>\n

Here are some popular subreddits:<\/span><\/p>\n

r\/WallStreetBets<\/b><\/p>\n

Reddit\u2019s inclusion as a major source of finance-related discussion is due in part from notoriety generated by the rowdy 11.8 million active members of \u2018WallStreetsBets\u2019, the subreddit that served as the digital gathering spot for coordinated activity amid the GameStop and AMC short squeeze in January 2021. WallStreetBets is dedicated to retail investing and operates based on a <\/span>Main Street versus Wall Street <\/span><\/i>mantra. One of the most compelling contributions of WallStreetBets is its creation of a new (and sometimes vulgar) financial vernacular, coining the terms: \u2018Stonks\u2019, \u2018Apes\u2019, \u2018YOLOing\u2019, \u2018Diamond Holding\u2019, \u2018Tendies\u2019, etc.<\/span><\/p>\n

Motto:<\/b> Like 4chan found a Bloomberg terminal<\/span><\/p>\n

r\/PersonalFinance<\/b><\/p>\n

As another one of Reddit\u2019s most popular pages, the 15.5 million users of r\/PersonalFinance ask, debate and promote tips and tricks for budgeting, saving and investing. The most popular posts are archived in an extensive, proprietary resource center and available to the public. The immense popularity of the subreddit has inspired cloned finance pages dedicated to helping users in other regions around the world, such as r\/EUPersonalFinance.<\/span><\/p>\n

Motto:<\/b> Get on top of your finances<\/span><\/p>\n

Honorable Mentions:\u00a0<\/b><\/p>\n

r\/Bogleheads, a subreddit of 150,000 \u2018lazy\u2019 investors discussing passive investing in broad market index funds and compounding returns, based on the strategy promoted by the site\u2019s unofficial mascot, the late John Bogle of Vanguard.<\/span><\/p>\n

Motto:<\/b> Active managers want your money- our advice: keep it!<\/span><\/p>\n

r\/FatFIRE, a page for its 300,000 users to share tips and tricks for those that are financially independent (\u201cFI\u201d) and retire early (\u201cRE\u201d).<\/span><\/p>\n

Motto:<\/b> Retire with a fat stash<\/span><\/p>\n

\"PodcastPODCASTS<\/span><\/h1>\n

Available on: <\/b>Spotify, Apple Music, Google Podcasts, SoundCloud and Audible<\/span><\/p>\n

Podcasts are great for advertising new products, promoting your firm and more. Podcasts put an emphasis on the audio, enabling more focus on the issue at hand in a more comfortable, open, roundtable setting. Asset managers that appear on podcasts are more likely to attract buzz for products due to the loyal and niche audiences that dedicate anywhere from 3 minutes to an hour to listening to an episode.<\/span><\/p>\n

Some of the most popular finance podcasts include:<\/span><\/p>\n