Borrell Associates, a research and consulting firm that has been tracking local advertising trends since 2001, recently published the 2013 Real Estate Advertising Outlook in which they revealed some interesting conclusions and observations.
The Agent Advertiser
Borrell concludes that while "media has undergone wrenching changes in the past decade, the industry's basic marketing tenets haven't changed much." Borrell findings include -
- Agents, not big brokerage firms, control most of the ad spending. This makes corralling the industry difficult because even the smallest markets might have more than 50 agents, while large ones have thousands. Even at the brokerage level, it's still very much a cottage industry: The average brokerage firm has only 2 to 3 agents.
- Agents love to advertise themselves. That speaks to the other purpose of their advertising - to acquire new listings (as opposed to placing ads to sell homes.)
- Agents believe property ads appease the seller, not find a buyer. That's one of the key reasons local homes magazines exist. An inexpensive full-page ad often gets torn from the book and mailed to the seller. "See - I'm advertising your property."
Other conclusions from Borrell's study -
"After years of decline, Real Estate is finally on the rebound. It’s shaping up to be a $27.3 billion category, up nearly 10% from 2012. Our annual review of advertising and marketing trends takes a deep dive into how this category has been reshaped over the past 15 years. The big headlines: Spending on newspapers is no longer declining, spending on homes magazines is up 30%, and online ad spending – while up nearly 17% this year – is likely to begin flat-lining soon."