Industry News

Online real estate ad spend to grow during downturn

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Spending on online real estate advertising will continue to grow during the housing downturn, surpassing spending on print ads by 2011, according to a forecast by Borrell Associates Inc. The migration of real estate advertising dollars to the Internet won't happen fast enough, however, to prevent the total real estate ad spend from declining from a peak of $11.8 billion in 2006 to a trough of $10.2 billion in 2009, Borrell predicts. Although Borrell expects growth in total real estate advertising to resume in 2010, the $11.2 billion projected real estate ad spend in 2011 would still fall short of the record level of spending at the height of the boom. . During the boom years from 2001 to 2005, spending on real estate advertising increased at about 9 percent a year, before peaking in 2006. Borrell now projects total real estate ad spending will shrink by 3.3 percent in 2007, to $11.46 billion. "The real estate market went downhill in 2005, and the agents did what they always do at firs...