Sixty-Three per cent of advisors use at least one social media tool on a personal basis, but just 35 per cent use social media professionally, according to a survey by Aite Group.

Of advisors who use social media professionally, 36 per cent say it has helped them reach new prospects, and more than one in five credit social media for increased awareness of their practice and differentiation from their competition.

Still, social media use by advisors faces hurdles. Firms' attitudes and policies toward social media may be depressing its use among advisors, Aite said.  More than half of the 402 advisors surveyed work for a firm that has a written policy governing the professional use of social media tools.

“Despite firms’ philosophies, advisors that use social media professionally are believers in its benefits,” Ron Shevlin, senior analyst with Aite Group and author of this report said. “Beyond the benefits that they have already realized, advisors using social media feel that the tools can help support a range of business objectives, from building customer relationships to supporting customer acquisition and employee recruitment efforts.”