Industry NewsTechnology

Real estate industry spends $1.3 billion on Web

Competition heats up for online ad dollars

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

The $11.5 billion that real estate brokers and agents spend on advertising is being spent in new ways, according to a new study on online real estate advertising by Borrell Associates. Brokers and agents this year will spend $1.3 billion, or 11.2 percent of their budgets on Internet media. In the last seven years, online ad spending went from $14 to $148 per home sold, while newspaper ad spending went from $755 to $605 per home. A variety of factors have caused the change, including cheaper rates of advertising online versus print media, and the ability to track results of Web advertising. "Two companies control nearly one-third of all ad spending in this category," according to the report. They are InterActiveCorp's network of LendingTree, RealEstate.com and ServiceMagic with 16 percent of online real estate advertising; and the Homestore network with 14 percent. Newspaper-run Web sites control 10 percent of online advertising, while HouseValues, ZipRealty and HomeGain each have 3 p...