When the real estate market started its steep plunge in 2007 and 2008, the ad market for this sector dropped as well. A recently published report by Borrell Associates points to a 20% decrease in real estate marketing during 2009 which brought total spending from $24.4 billion to $19.6 billion. But the outlook for 2010 is improving in the category. Analysts at Borrell are looking for a 3% rise in spending.
Here is where Borrell expects to see changes:
- Online marketing for real estate increased last year and will continue to gain market share in 2010.
- Government agencies and banks will up their placements in local newspapers to sell distressed properties.
- Realtors and other sellers will move into more use of one-to-one marketing techniques such as e‑mails, thus bypassing local media properties.
- Marketers will use more online video to tout features of properties that are available.
While Borrell analysts acknowledge that the general slowdown in the real estate sector may endure for up to 5 more years – based on unemployment figures and high delinquency rates in current mortgages – they also expect that some of the marketing changes they are seeing will be permanent.[Source: Research and Markets release, January 22, 2010]