Forex and CFD brokers usually struggle when it comes to marketing campaigns due to serious restrictions and laws preventing them from forming fully fledged multiple-step strategies. In most cases, they rely on affiliate marketers who create specific content and then showcase the companies to their audience. It has been like this for many years now and still continues on doing so. However, a major breakthrough in financial marketing was made when eToro first decided to launch a campaign on Facebook and various other social media websites where the ads were not professionally shot but showcased the rather casual side of the industry.
This was a massive hit and earned the company quite a lot of followers and most importantly customers. Due to such a success, many other financial companies were inspired to do their own version of social media marketing, but unfortunately, most of them failed terribly. This was due to not following the niche of the platform they were marketing on, and the infographic below is a great example of those numbers.
The infographic details around four major social media channels that these financial companies used and their performance on each and every one of them. It is clear that the most in-demand and useful platform is Facebook, due to the numbers that several forex brokerages managed to attain. But why is Facebook such a clearly superior choice compared to other social media channels? Let’s see.
Youtube is a pre-dominantly video content-oriented website, and when it comes to sharing information through video, the financial markets are quite lacklustre. Although it can help the viewer to better understand the market, the overwhelming majority of traders prefer to read comprehensive guides on various websites.
Furthermore, the Youtube community is far more loyal to individual creators rather than corporations, which is the reason why these companies have virtually no subscribers. Although Youtube can provide a plethora of influencer marketing opportunities through popular individual creators.
Facebook, on the other hand, is much more open to random video content. For example, if a user is shown an ad about a financial company, for which he or she does not have any affiliation to, it does not seem out of place, as the community is used to seeing these ads. This gives Facebook the edge to incorporate not only the people involved in the industry but convert outsiders.
If you have any connection with Instagram what-so-ever, you’ll know that it is more designed towards the individual person rather than the company. It is a platform for celebrities and people to showcase photos about their life adventures. Very rarely can there be a case where a financial company can find suitable content to promote on the website. And even if they do, they forget to understand why people go to Instagram in the first place.
IG is a place for finding news about your friends or the people you follow, it is not a place where people go to be pitched a product. It can only be done through celebrity influencers. Unfortunately, though, IG is dominated by beauty product and fashion clothing companies, which take up most of the space.
When comparing IG to Facebook we do see some similarities. Facebook can also be considered as a platform for tracking news about your friends and following various influencers. But it is also a platform to find new and interesting ideas and industries. In fact, people who visit Facebook daily, expect to be marketed to directly, while IG users only accept subtle marketing hints such as brand showcasing on a celebrity’s latest photo. Overall Facebook gives much more freedom for content compared to Instagram.
Although Twitter is an amazing platform to build brand recognition and loyalty, it still falters when it comes to customer conversion. Very few people will be willing to register on a financial company’s platform, simply because they’re not following it. And nearly nobody on Twitter pays attention to ads. Therefore Twitter is best used to retain the customers a company already has and connect with them on a more equal level. It is a space to communicate and build brand loyalty.
Facebook can provide both. The company can interact with their customers in the comment section, but it will not be displayed clearly. Personal brand management is also easy, thanks to the messenger App, where the company can talk with the customer one-on-one. It basically incorporates everything Twitter is good at, but due to it not being the primary feature, users don’t really pay much attention to it.
How did these companies succeed on social media?
In order to measure a company’s success, it is very important to look at the overall number of people they reached, converted and influenced over the course of their marketing campaigns. Although the infographic does try to provide this information, you can also check the source for better clarification.