Social media report a wake-up call

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It should be no surprise that women are beginning to dominate the social media landscape. Whether it be posting personal updates on Facebook, tweeting about their businesses or connecting to other advisors on LinkedIn, women are proving they are more engaged than men when it comes to social media platforms. They are embracing all aspects of social media in ways that men are not.

"I think that it is extremely important for business women to be involved with these networks, whether they join LinkedIn, Twitter, Facebook or the other services that are available to them. These tools can prove crucially beneficial when it comes to building better contacts, business relationships or seeking out potential clients," Diana Gallo, digital marketing manager for Cineplex Entertainment and new media chair with Canadian Women in Communications told Advisor.ca.

According to 'Women on the Web', a report issued today by comScore Plan Metrix, social networking is a large part of most women's Internet experience. They spend more time communicating on average than men and are increasing their time doing so.

"Facebook is a large contributor when it comes to increased time women are spending communicating in the Social Media space. Facebook skews high for stay-at-home moms. It is a great way for them to share photos and keep in touch, when physical interaction is impossible or inconvenient," explained Gallo.

ComScore Plan Metrix reports that 56% of adult women say they use the Internet to stay in touch with others, compared to 46% of adult men. The time women spend writing emails, updating their social media status, chatting on the various instant messaging platforms outweighs the time spent by their male counterparts in every global region.

Women spent an average of 16.3% of their online time on social networks in April 2010, compared to only 11.7% for the men. The increase over the past year shows the growing importance of social networking to women's online experience. Social Networking's reach is highest among women in North America, with 9 out of 10 female users having visited a social network site in April 2010.

"Women are in many ways driving the mainstreaming of social media and the corresponding importance of reputation and trust," said Jay Palter, senior consultant, Palter Social Media Strategies . "For example, an insurance advisor often wants the spouse to be at the table when personal coverage decisions are being made because each person has a different perception of risk. Social media is becoming an increasingly important way to engage female spouses in these discussions."

ComScore's report also states that the two main draws for both men and women continue to be Facebook and Twitter. However, the role Twitter plays for women and men seems to be very different. In an April 2010 comScore survey it was revealed that men are far more likely to post their own Tweets than women and women say they use the service to find deals, engage in conversation with others and follow celebrities.

Women also purchase more and spend more online than men, and women are just as likely to manage their money online as men, if not more so. In the U.S., women make up just under half of the Internet population but generate 58% of the e-commerce dollars. Women spend 20% more time on retail sites overall than men. Women are more avid online buyers than men with 12.5% of women making an online purchase in February 2010, compared to 9.3% of men in the U.S. Women's contribution to e-commerce is greater in terms of buyers, transactions and dollars. In February 2010, they accounted for 49.8% of the U.S. online population but made up 57.9% of all non-travel buyers, made 61.1% of online purchases and accounted for 58.2% of online dollars.

"It is no surprise that women index high on shopping and retail sites. Women influence and make most of the purchasing decisions," said Gallo. "They do a lot of the shopping. What needs to be clarified is that a lot of the purchases made are not for personal use but for their husband, kids, other family members or they are buying gifts for others. Woman influence purchases and this is important for businesses and brands to note when looking at marketing and e-commerce initiatives. It also makes sense that women look to Facebook friends, word of mouth, as sources for what to buy or not as opposed to the online advertising that's out there. They trust their friends."

Palter agrees: "Women and men appear to be accessing online financial information and resources at a similar rate, but women may be using it differently — not only to do research, but also to decide who they trust."

According to the report though, smartphone usage remains dominated by men. In the U.S., the split is 60% men, 40% women while in Europe it is 63% men and 37% women. The female share of those markets is not increasing either. When using their smartphones, women are more likely to play games and check email while men tend to access news and information more frequently.

Gallo disputes those findings, especially when they are applied to the day-to-day business world.

"While the conclusions may be true when it comes to people's personal lives, I would like to believe that on business level, mobile access is similar for both genders. In my experience, both men and women check their email, respond to messages and access news on their smartphones while on the clock each day," she said.

Mobile usage aside, Palter believes the ComScore report stands as a wake-up call for advisors who have not taken advantage of the benefits of social media to start doing so.

"This report points to a huge opportunity for financial advisors: present high quality information online in an accessible way, then roll up your sleeves and have a conversation with your readers, listeners, viewers, etc. This could be one of the best business development activities you engage in," Palter told Advisor.ca "I think the report has valuable information for any advisor — male or female — who sees women as important part of their practice. Clearly, building your social media skills and an online reputation is an important message for advisors."

(07/28/10)