Report Blasts Real Estate Marketing

Posted in Real Estate on February 03, 2010 by Kevin Brass

Real estate marketing strategies in the U.S. represent a “major disconnect” with the industry’s own consumer research, according to a new survey of property firms.

A mountain of data tells real estate executives that consumers use the Web for their property research. For example, a recent report by the National Association of Realtors found 90 percent of consumers start their real estate search online.

Yet, 76 percents of firms spend less than 30 percent of their marketing budgets on digital marketing, according to a survey of “hundreds of real estate firms” by the Brandeis University International Business School, sponsored by inSegment, a digital marketing company.

Fifty-eight percent of the respondents said their companies don’t do any search engine campaigns, the survey found.

“There is nothing surprising about the fact that all real estate consumers are on the Web,” Oleg Vyadro, founder of InSegment, a digital marketing company focused on real estate, said in a press release. “What is surprising is that while Google generates approximately 3 billion unique daily searches, only a small minority of real estate players are tapping into the opportunity in a serious way.”

Sure, Vyadro might be more than a bit biased, given his focus on digital marketing. But the report rings true for anyone familiar with the industry. New money continues to flow into old school marketing, even though there has been a clear shift in consumer trends.

The perceived complexities of digital campaigns and decreased budgets were most often cited as the reasons for slow response to the growing importance of the Internet, the study found.

Awareness of the Internet certainly wasn’t the issue. Sixty-seven percent of the respondents said they do not believe they are making the most of their online opportunities. However, 53 percent said they expect to “aggressively” increase online spending in 2010.

Tags: Portals

Comments

+1 # 2010-02-04 15:23

I have been in the real estate industry for 12 years as a top performer and couldn't agree more. In fact, two years ago I left what I call a "big box traditional brokerage" because they were not moving in the direction that you describe here. I assessed that I would begin to go backwards in my career if I stayed with a large firm that was not innovating and giving the online customers what they want. Upon leaving, I created my own firm in Austin, Texas which is focused on technology and web marketing in order to reach, help, fulfill and satisfy out prospects online while using tight technologies, automation and systems to be able to service them according to high-sets of standards as our customers and clients.

I compare my industry to the auto-industry -- the leaders at the top have an attitude that we are 'too big to fail' -- well, if the large brokers don't change with the times ... and continue to 'build cars that people don't want' ...how unlikely is it that the real estate industry won't follow to same path to failure?...only difference? We probably won't have the US tax payer to bail us out.

Thanks for the article. Maybe it will wake a few people up.

Krisstina Wise
www.goodlifeteam.com
@krisstinawise

0 # stpetefl 2010-02-04 16:34

Many agents and firms DO recognize that they need to be marketing on the internet and are doing that. A good internet strategy required more time than money, however, so I don't know that spending 30% of their marketing budget on digital marketing is the right measure. At least relate the spending to "advertising" instead of "marketing" which has a much broader scope.

0 # 2010-02-04 19:03

Has anyone considered that the reason agents don't advertise as much as suggested on the Internet is because they don't have too?

Many agents already have content listed online by their companies and thus hosting a personal web site could be redundant, duplicative and not cost effective?

Secondly, the notion of the Internet being the prime source of homes is based on the simple reality it's free to consumers?

Is there any correlation between internet traffic and home sales? To dismiss other marketing opportunities is short-sighted, especially as the price point of the home increases.

0 # 2010-02-04 19:36

Storefronts are Legacy

The Web and Virtual are Here and the Future.

The Web is Green, Bricks are not.

Searching online is where its at and drive arounds are not.

Don't let the Ego get in the way of Eco & eCom.

--- Karl Lingenfelder
www.viewr.com

0 # 2010-02-04 22:12

The web is definitely where it's at. There's an even bigger web opportunity in emerging markets.
http://su.pr/1IRyyn

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IPJ Report

A daily feed of news and analysis on the international property business.

RSS	Author: Kevin Brass has covered the quirks and trends of the global property industry for many than 20 years, including regular features and analysis in the International Herald Tribune and the New York Times.