Real Estate Industry Online
Online Real Estate Ad spending to nearly double by 2010 ($2 billion to $3 billion).
Real Estate is one of the most competitive online markets (in the US at least) particularly in local and regional markets. Add to that the slowing demand in property sales, and the increase in the number of realtors in recent years.
Its also an industry known more for postcards in the mailbox rather than innovative use of new and existing internet sales and marketing tools.
Here are some salient facts and observations:
As a percentage of total RE advertising, online advertising will rise from 17.7% to 32.1% between ‘06 and ‘10.
There’s a disparity between the proportion of buyers using the Internet for home search and the proportion of surveyed realtors (537) advertising online:
- 77% of RE buyers use the Internet for home searches
- 15% of agents advertise online
Offline newspapers will continue to experience a decline in RE ad spending although a diehard 42% of real estate agents will increase their newspaper ad spending, with 40% spending the same amount. There is a noticeable shift out of large metropolitan daily newspapers and towards less expensive suburban and community weeklies.
Search ads for individual local agents rose from 17.5% of local search ads in 2004 to 49.6% of listings on keyword searches across 10 different cities this year.
There is a disparity between long-time agents and those who are relatively new to the industry. 36% of those who have been agents 10 years or longer use online advertising while 64% of those in bhe business for 10 years or fewer buy online ads. 71% of those less-experienced agents will boost their Web ad budgets this year compared to 48% of their veteran counterparts.
Unless they adapt, the agents with longer histories in the industry are going to lose out as younger/newer agents fill the demand created by consumers using the web to find homes.
Free and almost free online RE listings and information services will have an increasing impact on how RE is conducted: Google Base, Trulia, City Cribs, Curbed, Ooodle, Yahoo Real Estate, Move, Zillow. The most significant user benefit is the improved user experience and added value of these services.
additional reporting thanks to Borrell Associates and Clickz
Tags: Trends · News
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