Say goodbye to newspaper advertising
New strategy needed before changing course
By Matt Carter, Thursday, August 6, 2009.
SAN FRANCISCO -- Real estate brokerages can stop buying print advertising -- and even step away from purchases of online banner ads and featured listings -- while still increasing their share of business in their local market.
Tom Tognoli, a founder and the chief operating officer of Intero Real Estate Services, said the company has cut spending on advertising from $3.2 million a year in 2004 to a projected $500,000 this year.
Intero -- which has 40 offices in California, Colorado, Nevada and Texas -- has grown its Web site traffic and market share by syndicating listings to third-party real estate portals and by creating its own marketing channels through blogging and social media.
Before pulling the plug on print advertising, it's important to have a new marketing plan in place, Tognoli and other real estate industry executives said in a discussion of online ad spending strategies at Real Estate Connect San Francisco.
"We were among the first to syndicate listings to Trulia, and everyone was up in arms when we started," Tognoli said. Doubters asked, "Are you out of your mind? What are you doing?"
Intero then began syndicating listings to other sites, at first spending money on online banner ads and featured listings in support of the shift. Today, "We've pulled away from that as well," Tognoli said.
If a brokerage has a dominant share of its market, it can achieve a big enough footprint online through listing syndication, Tognoli said, and ads "won't ad much value."
Marketing "is not about traffic, it's about conversion," he said. Brokerages that decide to advertise online need a clear and defined game plan, and they had better understand their return on investment (ROI).
Intero has created its own marketing channels, using techniques like blogs -- one aimed at consumers, the other at agents -- and three-times-a-week e-mail blasts.
Roost CEO Alex Chang said brokers and agents should breakdown the objectives they want to achieve in their online marketing, because social networking techniques that work well for some objectives, like branding, aren't as effective for client acquisition or listing promotion.
For client acquisition, Chang recommended IDX (Internet Data Exchange) or VOW (Virtual Office Web sites) listings platforms like those that Roost builds for clients, and targeted "cost per click" ads and referal platforms in which brokerages pay for customers on the back end of a transaction.
How much time and money to spend on online marketing depends on the broker or agent, he said. Some agents may be able to get all the work they need through client referrals, and some brokers may use social media and blogging mostly as a way to build brand. Others are heavily dependent on online marketing to drive business, he said.
Sean Black, vice president of sales for Trulia, said agents and brokers should ask themselves four questions about any online marketing technique they are considering employing:
- Where do I get traffic and leads from, and can it scale?
- Where can I reach the most new-home shoppers?
- Where can I get the best targeting?
- Where can I get tracking by agent and listing?
***
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Submitted by David Curry on August 5, 2009 - 5:30pm.
Amen to that. I stopped print advertising my listings a year ago, and haven't noticed an ounce of difference in buyer traffic. As soon as Realtors learn that we advertise to get sellers, not buyers, things will really change. Once sellers realize the value of the online channels, print ads won't even be expected.
David Curry
Geneva Lakefront Realty
49 West Geneva Street
Williams Bay, WI 53191
262-245-9000
www.genevalakefrontrealty.com/blog
Submitted by Steve Trang on August 5, 2009 - 5:34pm.
I wonder whether the $500,000 include the salary of the people blogging and doing social media? If not, they may just be moving costs around. Either way, the newspaper has been yesterday's news for years.
Steve Trang
Tempe Homes
Gilbert Homes
Submitted by Daniel Bretzke on August 5, 2009 - 5:42pm.
Yes, the world of newspapers will so go the way of the typewriter. For rentals I stopped using the newspaper four years ago. Most of the people I talk with look for real estate online. With an iPhone, I am finding that I can leave posts, read news from blogs that is fresh, research property information and communicate everywhere. Advertising in a newspaper is a bit stale.
Submitted by Robert A. Hulme on August 5, 2009 - 5:54pm.
Print was history long ago, an effective Online presence is mandatory in order to succeed in the future.
www.UtahHomesForSale.ws
www.UtahHomes4Sale.ws
Submitted by chis eliopoulos on August 5, 2009 - 6:03pm.
Newspapers? Are they still around?
NO
Thankfully have died off, the nightmare is over.
Submitted by Tim Ryan on August 5, 2009 - 7:54pm.
Internet is definitely the best vehicle of obtaining new business right now, but I think newpapers still work for those agents who can afford full page advertising. However magazines work better for luxury real estate agents.
Tim Ryan-Amerivest Realty
http://www.naplesguru.com
http://www.enaplesrealestate.com
Submitted by Sal Antsipenka on August 5, 2009 - 7:57pm.
Never used newspapers in US. However, newspapers still work very well in UK.
Sal Antsipenka
VIP Realty, Inc
Naples, Florida
http://www.naplesrealestateseller.com
International RealEstate Buyer Leads
http://www.realestatefair.net
Submitted by Todd Armstrong on August 5, 2009 - 11:20pm.
It's good to see an article like this. It is something I can use to show my Sellers who still think newspaper advertising works. The only benefit I can see of print advertising is to drive traffic to my website.
Todd Armstrong
Armstrong & Associates
http://www.DwellSanDiego.com
http://www.FreeHomeSearches.com
858.229.8752
Submitted by Eric Odum on August 6, 2009 - 4:41am.
Almost all of my leads are coming from the internet these days. We stopped print advertising over a year ago. Our local newspaper is little more than a newsletter now.
Tampa Offices for Rent
Florida Commercial Real Estate
Submitted by David W. Appel, Jr. on August 6, 2009 - 6:38am.
spot on tod armstrong, newspaper/print advertising will drive trafic to your website. it also is useful for branding within your market. the problem with real estate print advertising is if you seen one you seen them all. if your advertising was memorable and diferent, results could be too.
D.W.Appel, Jr.
Gimme Shelter, LLC
www.800buysell.com
800 BUY-SELL
Submitted by Scott Allan on August 6, 2009 - 6:38am.
I still think newspapers work to an extent. Although still pricey, if you add newspaper marketing with radio advertising like big companies have done, the ROI is certainly not what it used to be. I have spent my time on SEO rather than spending money for print. I have learned a lot and think I am lightyears ahead of the curve in global web marketing. Those who are not open to this new era of exposure is in big trouble
Submitted by Joe Loomer on August 6, 2009 - 6:51am.
The only print advertising I've done in the last three years is for Open Houses. I stopped doing that this spring after alternating Open House weeks with print ads and no ads. Zero difference in traffic.
May be specific to my area, but the lag time in ads going to bed and being published in local real estate magazines usually results in the property being misrepresented in some fashion - either the price has changed, the terms have changed, or the property has sold.
Augusta GA Homes
Joe Loomer, USN Ret.
Associate Leadership Council, Growth Chair
Keller Williams Realty Augusta Partners
Submitted by Craig Baker on August 6, 2009 - 7:59am.
All PRINT should not be painted with the same tarry brush. Most buyers are not going to start on Trulia or Zillow. They are going to start as always, by visiting areas and collecting materials. Those materials will often include property brochures, maps, and local real estate magazines.
These magazines - especially those with shelf lives of 2 months or more will continue to provide a valuable introduction, or even a refresher for people considering a move in your area. They offer a "helicopter" view of price ranges and amenities, and internet resources for today's latest offerings and updates are at the readers' fingertips.
This is especially true in resort and secondary markets where buyers may not have their usual internet access. They may not use the corner payphone to make inquiries these days, but they can follow links on their smartphone, or do further research when they reach desktop computer - real estate magazine in hand.
Unlike newspapers, these magazines are usually operated at a very low overhead by independent publishers so you don't have to share in the cost of 30-50 full time employees, and a 2-story Heidelberg printing press that needs to run constantly in order to pay for itself. And unlike newspapers they are highly target to people who want information about real estate not sports scores or the funnies.
In short, these magazines will survive newspapers in this channel and remain an important resource to identify pertinent websites for your area (drive traffic), individual properties of interest, and the best agents representing them.
Craig Baker
http://mtnhomes.com
http://usahomesearch.org
Submitted by Danny C. Flucke Jr. on August 6, 2009 - 8:17am.
The ROI for online/social marketing has always been lower than traditional print. It seems print advertising is/was used as a "social proof" way to capture more listings - Rather than the best way to market and sell the current inventory.
As the economy continues to tighten - More and more high producing agents are using ABA partners to generate business.
One proven strategy (We deliver "turn-key" for free) generated 132 listings in 60 days for our real estate partners.
The most effective marketing strategies are free - IF you know what to do - And IF you have the right ABA partners. (A quick 5min phone call will help us both decide if we can work together...)
Work hard and ride safe...
Thanx, Danny
Danny C. Flucke Jr.
Senior Partner
Nationwide Mortgage Experts, LLC
Direct: (714)624-9479
DCFJ@NationwideMortgageExperts.com
www.NationwideMortgageExperts.com / www.NaMoEx.com
Submitted by Danny C. Flucke Jr. on August 6, 2009 - 8:19am.
EDIT: "The ROI for online/social marketing has always been lower than traditional print."
This obviously should have read "The ROI for online/social marketing has always been HIGHER than traditional print."
Thanx Danny
Danny C. Flucke Jr.
Senior Partner
Nationwide Mortgage Experts, LLC
Direct: (714)624-9479
DCFJ@NationwideMortgageExperts.com
www.NationwideMortgageExperts.com / www.NaMoEx.com
Submitted by John Foxworthy on August 6, 2009 - 8:58am.
If I read the "paper" newspaper and have further interest in anything from cars to real estate I gravitate back online anyway - to get more robust information.
I agree with David W. above - newspaper ads help to drive traffic to your site. The days of gigantic inserts is history. I think much can be accomplished with a really eye catching / thought provoking small ad. Traditional print has it's place but you should be reaching a global audience and they are online.
Particulary for niche markets like vacation rentals - online is where the action is now.
www.Furnishedhomes.com
Vacation Rentals Map
Submitted by Paul Caparas on August 7, 2009 - 12:42am.
I stopped print advertising a year ago. Most people start their research on the internet. Not only for homes but even smaller purchases like a TV. Actually a lot of Realtors at my office aren't doing much print advertising either.
Paul Caparas
San Diego Realtor
Submitted by Anne Hensel on August 7, 2009 - 5:43am.
I have stopped newspaper advertising 3 years ago and completely focused on online. My advertising cost got cut in half and I have more leads. Buyers and sellers use the internet to find a property for sale or a realtor. The small percentage of people that I can reach with newspaper advertising is just not worth the money I have to spend. Tampabay is a big second home location and my buyers do NOT get the local newspaper delivered every day.
Anne Hensel
Broker,
South Beaches Real Estate Professionals
727 409 8706 www.Southbeaches.info
Submitted by Carlton Jones on August 10, 2009 - 5:16am.
We're still doing a combination of both as we still get some folks that still like newspapers. The actual Auctions are almost all online now.
-Carlton Jones
www.rowellauctions.com