Marketing

Where do real estate agents spend their advertising dollars?

Borrell Associates: Fewer dollars, but a rising share is spent online
  • Real estate agents and brokers are spending less on advertising this year, including less on online advertising, according to a report from Borrell Associates.
  • But the share of ad dollars agents and brokers are devoting to online ads is increasing.
  • Borrell predicts that in five years, 29 percent of online ad dollars will be spent on streaming video ads.

Real estate agents and brokers are spending less on advertising this year, but a rising share of their ad spend is going to where they think potential clients are: online. That's according to an annual analysis of real estate ad spending by Borrell Associates Inc. $25.9 billion on advertising -- down 6.3 percent This year, Borrell predicts, the real estate industry -- mortgage providers, real estate agents and brokers, rental property management companies, and developers -- will spend $25.9 billion on advertising. That's down 6.3 percent from $27.6 billion in 2015, the company said. Borrell attributes the decline to a 6 percent drop in home sales this year. While mortgage providers are expected to up their ad spend by 7.3 percent in 2016, to $13.1 billion, the company anticipates agents and brokers' ad spend to decrease 13.8 percent, to $9.3 billion. 2016 Spending Estimates, Source: Borrell Associates Of that $9.3 billion, Borrell predicts nearly 84 percent -- $7....