How Your Financial Institution Can Keep up With Social Media in 2023

Social media marketing constantly evolves, and staying ahead of the trends is crucial for brands and marketers. It is essential to be aware of the critical changes shaping the landscape of social media marketing. 

Much of what we discussed in a 2022 article has continued throughout 2023. The rise of TikTok, the need to be authentic and transparent, and the need to advertise outside of Facebook and Instagram have all continued to be trends in 2023. However, financial institutions need to continually develop social media strategies to connect with their audience through social media.  

The Rise of Social Search

Almost 40% of individuals between the ages of 18 – 24 aren’t using search engines for local searches, such as where to have lunch, but instead are searching on Instagram or TikTok. With the rise of social media platforms as content discovery platforms, users increasingly rely on recommendations from their social networks to find information, products, and services. People often turn to platforms like Instagram, Twitter, and Pinterest to discover new brands, products, and trends.

As a result, financial institutions need to optimize their social media presence to ensure that their content is discoverable through social search. This can be done by using relevant hashtags, optimizing captions and descriptions, and engaging with influencers and industry experts to increase brand visibility.

Additionally, financial institutions should focus on creating shareable content that resonates with their audience. By creating valuable, entertaining, or educational content, financial institutions can increase the likelihood of their content being shared and discovered by a wider audience.

Micro-Influencers are the Majority

There are multiple levels of influencers, starting with nano-influencers who have 1,000 to 10,000 followers and going to macro-influencers who have more than 500,000 followers. Micro-influencers fall somewhere in the middle, with 10,000 to 100,000 followers, making up to 91% of the influencer market. 

Micro-influencers will typically have a more niche audience, making them an ideal choice for a brand looking for a specific audience. Additionally, micro-influencers tend to have a more in-depth connection with their followers which can lead to higher engagement rates. Fees associated with a micro-influencer may be more cost-effective for your financial institution. Before partnering with any influencer, a financial institution should consider their audience demographics, values, and communication style to ensure they align with the brand values.

Changes in Specific Social Media Platforms

The most popular social media platforms include Facebook, Instagram, TikTok, and Youtube. All of these platforms support advertising and, likely, your financial institution is already advertising on these platforms, but a social media strategy should go beyond strictly advertising. There may be better places to advertise, but a financial institution should be aware of the platforms and the potential for consumer connection of each platform.  

• Threads: A brand new app released in 2023 as a direct competitor to Twitter, Threads gained millions of users in the first days, becoming one of the fastest-growing social media platforms. However, within a couple of weeks, user engagement dropped significantly. It is still too early to tell whether Threads is here to stay, but the social media platform proves how quickly the social media landscape changes. 
• Youtube Shorts: Short videos have dominated social media recently; look at TikTok or Instagram Reels. In February 2023, it was reported that YouTube Shorts surpassed 50 billion daily views, up from 30 billion in 2022. YouTube is a household name worldwide, and this shift shows how the type of content consumers want to view will continuously change. 
• LinkedIn Creators: LinkedIn has been around forever (in terms of social media), but there has been a recent shift in the content on LinkedIn over the past year. There has been a rise in LinkedIn Creators adding more personality and generating organic engagement via the platform. 

Unique Content for Each Social Media Platform

These three platforms show how new social media emerges and how established social media will evolve. With so many social media platforms, financial institutions may want to post the same content across multiple platforms. However, financial institutions must create platform-specific content to optimize engagement with their target audience. This change can be as simple as adapting the tone or style of the content, but it may often need to be a change in the format.

Social media will constantly be changing; these are just a few trends currently seen throughout the digital space. By implementing changes in your financial institution‘s social media strategy, you can increase your brand awareness and connection with your target audience. 

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