Realtors to Change Advertising Methods
The real estate market is beginning to show signs of life with buyers out looking for deals in some regions. To attract both buyers and sellers, realtors need to advertise. Since the start of the great recession, the array of advertising formats has increased and more realtors are turning to online and social media methods.
According to a new study on realtors released by ActiveRain, direct mail continues to deliver for many realtors. Regarding the study results, realtor Jack Hipolito Fernandez noted that the advantages of direct mail include personalization and quick response times.
The study also revealed that the average realtor spends about $1,070 a year on marketing. But realtors who get top results are also the ones who spend the most on marketing – between $5,000-$10,000 a year.
Here are the percentages of realtors using various types of marketing along with the monthly ad spending in each category:
- Home buyer/seller lead generation $155 (32%)
- Pay per click $140 (16%)
- Pay on national websites $128 (26%)
- Sponsorship/ads on local sites $77 (10%)
- Blogs/social media $78 (45%)
- Local newspapers $99 (14%)
- City newspapers $98 (10%)
- Direct mail $108 (40%)
- Radio ads $191 (5%)
- TV ads $139 (3%)
Many realtors may believe that personal relationships are the key to success. After all, referrals make up 20% of their business and past clients generate another 19%. When it comes to personal websites, only 3% of new business can be linked to that source and open houses generate no new business.
But 45% of realtors are investing their time in online tools like blogging and social media which cost much less in cash outlay. These tactics are also likely to help realtors build more personal relationship which could bring in new business. Direct mail will continue to serve as an effective marketing tool, but realtors that go the extra mile with online and social media formats will reap rewards.[Source: Real Estate Marketing and Software. ActiveRain. July 2012. Web. 20 Jul. 2012]