Febby

These TikTok influencers are bringing light to the ability of social media to empower and enlighten investors, especially those who have been so afraid of making that jump to investing. However, no matter how straightforward and simple their content may seem, it is important to note that there is no one-way formula to achieving financial freedom.

There is always risk in investing, but we can always derisk by doing our due diligence before making any financial decisions. Thankfully, we have so many creators today that offer free financial and investing advice based on their experiences and knowledge, which we can apply in making our portfolio or deciding on our next investment.

While TikTok has been famous for entertainment and e-commerce, investment content has become one of the most-viewed topics on the platform. This shows that young people are seeking information on personal finance and starting to grow their financial portfolios. Here’s what you need to know about how TikTok is shaping the future of investing.

Putnam Research says “21% of financial advisors are using TikTok for business.” With many young adults turning to social media to learn about personal finance and how to earn more money, comes the rise of TikTok financial influencers or finfluencers. Investopedia defines a finfluencer as “someone who shares their knowledge and expertise on specific financial topics, primarily on social media” ranging from personal finance, entrepreneurship space, and budgeting concepts, to trade stock tips and investing in cryptocurrency.

Finfluencers establish their credibility by solving problems and sharing tips and information in the most digestible way. They make money through partnerships or selling educational products. While you can find plenty of bad and dangerous information about finance, the stock market, and investing on TikTok, there are actually many finfluencers that offer the best financial news and advice on the platform. Just make sure to stay clear of finfluencer red flags.

As with making any financial decision, research remains incredibly important. While free financial advice could be very appealing we should remain cautious and aware of which advice to follow and avoid. Here are some financial influencer red flags that you should take note of according to Investopedia:

1. Influencers that make promises that are too good to be true, using terms such as “foolproof”, “guaranteed”, or “no fail.” Be cautious with those who promise to help you get rich quickly with little to no effort.
2. Hard selling and a lot of sales pitches – Genuine influencers care about helping their followers improve their financial situation.
3. Influencers that cannot show you proof of how they achieved success. You can check trusted sources like the Internal Revenue Service (IRS) or U.S. Securities and Exchange Commission (SEC).
4. Influencers constantly pushing paid promotions
5. Many followers, little engagement
6. Requesting for money or gift cards before providing content, product, or service

Emerging video-investing app Zeed combines TikTok’s video-style content and traditional stock trading service. It is also looking to legitimize content by verifying creators and fact-checking videos.

Even big tech companies like Google, Apple, and Microsoft showcase their brands through TikTok because they know it’s the best way to reach younger consumers. They use this platform to share humanized, relatable content that can set them apart from other brands.

Some of the challenges in crafting a TikTok marketing strategy is having the time and money to produce videos consistently. This means needing a marketing team that can create content with speed and quality.

Global One Media is also on TikTok! Follow us for the most recent highlights of the current industry leaders in the small and mid-cap stock market: Global One Media TikTok.

The first step in creating effective video content is knowing the profile of your audience. You first need to do extensive research on your target market’s online behaviors, demographics, and interests, among others, in order to produce social media videos that will be attractive to them.

There are various methods to achieve this. First, you can utilize social media listening tools and Google Analytics to extract data about your audience. Second, you can conduct online surveys to find out the pulse of your followers.

Effective storytelling is one of the best ways to entice online users into watching your video content. Evoking emotions through a fascinating narrative is a certain way to gain views and encourage users to invest time in your content.

Your video should provide value to your audience. Will it spark inspiration in them? Will there be a key takeaway after they watch your video Ultimately, effective storytelling happens when you contribute to the internal transformation of your audience.

The millennial generation has an attention span of 12 seconds, while Gen Z only has 8 seconds. For this reason, it is essential that the first few seconds of your video grab your audience’s attention in order to keep them glued to your content.

One of the best ways to do this is to raise a question at the beginning of your video or to create a strong opening line about your topic. Sharing a statistic or data can also help spark major interest.

Platforms like TikTok are not only social networking platforms but also learning tools. In fact, among the most popular categories on the app are educational videos covering a variety of topics like DIY, fitness, investing, and tech, among others.

Social media platforms are also a means of micro-learning, wherein information is distributed in small chunks for it to be more digestible for the learners. According to the Journal of Applied Psychology, micro-learning makes learning 17% more effective. It is no wonder a lot of the younger generation are interested in using social media to discover information and to expand their knowledge of the world.

At Global One Media, we help our clients tell their stories to their audiences. We believe in the power of storytelling and utilize it to help create compelling content for the world to see.

Connect with us today and let us start your brand’s journey in the digital space.

For a long time, capital markets relied on analyst firms, information on stock movements, and the press as sources of information. But today, the impact and influence of social media cannot be denied. At first, the internet was able to bring together investors and firms, blurring out national boundaries. Then, forums became platforms for peer-to-peer sources of information created by individual investors. Now, we even have studies on how Google searches can help predict stock prices.

The way that information is disseminated was greatly changed when social media platforms like Twitter gained momentum, where the democratization of content happened. People were able to share their views about stocks with the public. While Twitter’s short format, incredible reach, and ability to share information promptly make it an ideal medium for sharing information on the stock market, it also has its disadvantages. Tweets can sometimes be misleading or uninformed because it is an unregulated platform.

Another advantage of using Twitter for capital markets is using it to study investors’ behaviors. Firms also use Twitter to share corporate announcements like earnings. We also cannot forget the potent role of Big Data in Finance with social media being a tool used to assess consumer satisfaction.

Social media has changed how firms do investor relations. Firms look at social media feeds, check where they are mentioned, and read crowdsourced research and forecasts while complying with the Regulation Fair Disclosure (Reg FD), which requires publicly traded companies to share material and information to all investors simultaneously.

The world was stunned by the GameStop short squeeze where rookie investors inspired by the famous revenge plot on a subreddit drove the spike in the company’s share price which skyrocketed from $40 to $400 in a couple of days. This unravels the structural changes that are happening in financial markets and the vital role of the media and social media platforms in generating information and managing its flow. It proves that social media is growing a broader investing audience more and more.

According to the CNBC/Momentive Invest in You Survey in 2021, 35% of US adults use social media to look for investment ideas. While the Internet has enabled individuals to invest anytime and anywhere, using social media as a source of information can be dangerous if not done with care. With non-experts being able to easily give advice and information, financial experts recommend doing more research and background checks.

You can check out or follow financial advisors with social media presence who host live sessions and create relevant content. You can look for legitimate investment advisors through Securities and Exchange Commission sites and other similar organizations that release public information on the background of certified financial planners.

While people and influencers can share their personal experiences from which you can get advice, people’s situations are different and investments should be customized for individuals. A post or tweet that fuels your desire and enthusiasm for investing can be a good start but it is always best to take the time to do your research and consult with trusted sources and advisors before making financial decisions.

We would like to end with a quote by Peter Lynch that says, “Know what you own, and know why you own it.” as a reminder for investors to re-evaluate their portfolios from time to time and for companies to realize the power of communication to influence financial decisions and connect them to the right investors.