Industry News

Online real estate ad spend grabs lion’s share of market

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Real estate advertising spending has softened, but within the category, ad spending continues to shift to online venues, according to a report published by a research firm covering the classified and local advertising industry. Overall, real estate advertising has been sluggish, with a projected $11.4 billion in ad spend for 2005, up just 2.2 percent from 2004, according to Portsmouth, Va.-based Borrell Associates' "2005 Update: Online Real Estate Advertising." But within the category, online advertising is gaining, the report said. Real estate has been a key money-maker for the newspaper classified business model. That model is changing as real estate brokers and agents take advantage of more advertising opportunities online, such as search engine advertising and lead aggregator services like HouseValues and HomeGain. Online advertising spent per home sold has already reached $210, more than one-third of the newspaper ad spend, and the trend will continue through 2009, according ...