Top luxe agents plan to spend four to five times more on digital marketing in 2020 than their less productive peers, according to a Luxury Presence internal study of more than 1,000 real estate agents.
“The old saying you have to spend money to make money is more and more true,” said Malte Kramer, CEO of real estate marketing and software firm Luxury Presence at Inman Connect New York Tuesday in a session called “Digital Marketing Trends from Top Agents.”
Only about a quarter of average agents planned to spend more than $5,000 on digital marketing this year while two-thirds of top agents did, he said. The study defined top agents as those who did 20 deals or more annually.
The study results offered marketing best practices grounded in data, according to Kramer.
“Studying the best in any industry can be an amazing shortcut to success,” he told attendees, recalling his days as a professional basketball player.
With lead quality decreasing and cost per lead increasing, agents can still find areas of opportunity where they can have a competitive advantage, he said.
“Hone in on what makes you unique,” Kramer said.
With Facebook and Instagram prioritizing video, top agents are recognizing as an opportunity to tell their story in more visual ways, according to Kramer. They’re focusing on brand marketing through Facebook, Instagram, newsletters and websites.
“The average agent allocated about 14 percent toward brand awareness campaigns and 86 percent towards lead generation, whereas the top agents allocated about 60 percent toward brand awareness and only 40 percent toward lead generation,” Kramer said.
“I believe there’s a lesson here. The top agents recognize the value and importance of their brand and investing in building brand equity in the market.”
Websites that are marketed using SEO and/or Facebook ads have the most traffic, according to Kramer.
“Use video and retargeting ads to generate leads,” he said.
And while some in the real estate industry say IDX search is no longer necessary to attract eyeballs, sites with IDX tools get more traffic, according to Kramer.
“This doesn’t prove causation … but there does seem to be a relationship, and it’s my personal view that you can generate traffic with a solid SEO strategy and a good IDX tool,” he said.
Consistency also breeds success. According to the study results, 72 percent of top agents kept at least one marketing strategy consistent for 18 months or more.
“The takeaway here is getting great results from any marketing tactic is going to take some time,” he said.
“Diversify your efforts if you can around two or three platforms, but remember to be consistent,” he added.