For those of you who have come across the term Robo-advisor before but aren’t fully familiar with what it means, it’s a digital platform that gives you advice on how you can invest your money. Now, this isn’t as simplistic as I’m making it sound because several aspects make up Robo-advisory services.
Off-late, these services have seen a decisive spike across several countries around the world. The main reason why young professionals are choosing Robo-advisors over traditional investment advisors is that the former is easier on the pocket than the latter. Besides, these services are fairly easy to use as you’ll only need to fill in a few basic details such as your salary, investment goals, etc. to get started.
Once your details and preferences have been taken into account, a Robo-advisor then prepares an algorithm to match you to the best investment options at your disposal. This factors in your risk appetite as well so you needn’t worry about facing greater risks than you want to. However, there’s no solid evidence yet as to whether or not these automated advisors are more effective than living, breathing advisors with years of experience to back up their investment strategies.
That being said, young people aren’t likely to pass up the opportunity to interact with a computer rather than an actual human being (seriously, what is up with that?) so it’s no surprise that Robo-advisors are steadily growing in popularity around the world. Reliable sources have estimated that Robo-advisory services are on the way to managing trillions of dollars in the U.S. This should give you an idea of just how much money these automated advisors will handle across the globe soon.
If you’re sold on the growing significance of Robo-advisors, you may now be wondering what these services have that link them to Display Ads. Well, the answer is fairly straightforward: Robo-advisory services are relying heavily on Display Advertising to reach new customers and therefore widen their customer base. Once they execute their Digital Marketing Strategies successfully, they can handle a large volume of portfolios and quite possibly larger amounts of money as well over time.
However, since Robo-advisors haven’t been around for as long as traditional advisors have, the ad campaigns of these services don’t always hit the mark and seem to leave a lot of room for improvement. After all, the whole concept of Robo-advisory seems to be quite intriguing and could incite curiosity among potential investors so they shouldn’t be too difficult to market.
The biggest players in the Robo-advisory industry are currently Wealthfront and Betterment. One of the many reasons these advisors have managed to stay at the top despite facing fierce competition during the pandemic is that they’ve devoted their best resources to creating effective Display Ad Campaigns.
For instance, Wealthfront currently uses various websites such as business sites and lifestyle sites to run Display Ads. They find these platforms via the Native Ads networks. It also runs ads on new sites, which helps viewers gain the impression it’s a reputed service considering ad placements on these sites are highly coveted. Think about it: would you be more likely to take an ad for automated investment advisors seriously if you saw it on cnn.com or perezhilton.com?
This company focuses on encouraging young investors to get on board and use Robo-advisors and the targeting of their Display Ads is proof of the same. Its ads usually contain links for news websites that provide users with more information on what the services entail, rather than links to the company’s website. Through this, it allows users to dig deeper into what services it has to offer rather than make them feel like they’re being rushed into important investment decisions.
Other successful Robo-advisors such as FutureAdvisor mainly feature their Display Ads on finance and investment-related websites, thereby reaching out to their target audiences directly. The simple reasoning behind this is that a serious investor is more likely to be looking for investment advice on an investment website rather than on a news website. FutureAdvisor in particular is known to use unique angles to create Display Ads. You’ll often find these ads addressing concerns most first-time investors have with trusting Robo-advisors which in turn makes them appear more reliable.
Coming back to the biggest Robo-advisors in the industry – Betterment and Welathfront, they rely more on highlighting the advantages automated investment advice offers over traditional advice in their Display Ads. In other words, they make the viewer believe that Robo-advisory services are synonymous with them, thereby establishing themselves as industry leaders. Don’t be surprised to find phrases like ‘No hidden costs’ in a Display Ad for one of these companies, they often use such simple phrases to let viewers know the salient features of their services.
It’s interesting to note here that not all Robo-advisors use the same network to find websites for their ad placements. For instance, Wealthfront uses Google, FutureAdvisor uses Outbrain, and Bettermine uses Native Ads. This diversity speaks volumes for the effectiveness of each network in helping clients find great placements for their Display Ads to drive conversion rates. Since no one network is favored over the others, Robo-advisors are somewhat spoiled for choice when it comes to determining which network suits their advertising needs the best.
In conclusion, Robo-advisory services are growing in popularity at a rapid pace and look like they’re here to stay for a while. Taking the many great advantages they offer young and inexperienced investors into account, this is hardly surprising. As the demand for these services grows, so does the demand for effective Display Ads for these services. Therefore, it’s always useful for Robo-advisors to keep an eye out for the latest in Display Marketing strategies, and of course, keep testing to figure out what works best for them.