If years of business turbulence and dubious ad performance weren't enough to move you to eliminate your print newspaper spend, yesterday's Tribune bankruptcy may be the signal you've been waiting for.
The Los Angeles Times killed its once-great real estate section three months ago. Now they're bankrupt. There are lots of sad things about this, but none of them have to do with brokers who have paid too much for too long for ads that are, as Google's Avinash Kaushik would say, "Faith-based initiatives."
Truth be told, most brokers know continuing to pour money into print makes no sense from a strict ROI perspective. These ads don't sell houses. There are two major barriers that come up time and again in our discussions with brokers struggling with the need to right-size and update their marketing budgets to reflect reality:
1. Sellers expect to see their home advertised in print
2. I need to be in papers to maintain my brand
These are legitimate concerns. Cutting print off at the knees probably will hurt you if you do not take action to fill the void of perceived value you create by doing so. This action cannot be taken in isolation.
Most brokers don't yet know how to fill the void and thus remain handcuffed to the old way they know makes no sense. They may cut a little here, shrink a little there. But the P&L still tells the same story.
It need not be so.
The embrace of listings syndication by brokerages was a step in the right direction. But it's just a start. A new marketing plan needs to be built upon the ruins of the old model. One that can be presented compellingly to consumers, the performance of which can be measured, and the value of which hangs not so much on money spent, but expertise and technology leveraged.
I refuse to accept that most sellers — the median age of whom was 39 last year — aren't open to a well-thought out electronic marketing strategy in lieu of the quarter-page ad in which their home shares center stage with an agent head shot.
As for the branding question? We've known for ten years that the first place consumers go in the real estate process is online. Plenty of room for branding there, even, despite what you might think, in the sterile world of CPC.
So, the reasons why many brokers persist with print are valid — but only for those unwilling to to take commensurate action to replace it.
It can be done. We're working with several companies right now to do it. They've stopped writing the big checks and sleep well for having done it.
– Brian Boero
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Right on Brian, from a sheer ROI standpoint, Internet marketing reaches more "potential buyers" since the NAR says that 80% (I think it's much higher)initiate their search for real estate on the web.
When everybody does electronic marketing only, the brokers with a strong print presence will get more listings
Brian…
I couldn't agree with you more. I do 'round table' discussions with real estate franchises all over Washington and Oregon. I talk about the new consumer (search) behavior and why it's important to enhance your presence on the web. The paradigm shift is now more about 'how will they find you', not how you will find them. When the consumer has the need and is ready to make a decision, will you be visible and available.
The realtor's that get it and keep experimenting with internet presence are doing much better than those that push back and stick their head in the sand.
Crafting a good internet marketing strategy and articulating it in your listing presentation is very compelling to the seller. My clients tell me that they are directly asked most every appointment, "How will you be marketing this property on the web?"
Another great post… thx.
René
Isn't it amazing what can be done with the money you save from the full page ad in the real estate section? It goes a loooong way online. Great post!
Hi Brian,
I found a link to this post on Mike Lyon's Blog. It made my del.icio.us list! You are right on the money. I think the death of the Tribune is another validation that consumers want the Internet.
Thank you for your comments "There are lots of sad things about this, but none of them have to do with brokers who have paid too much for too long for ads".
The over priced, under performing newspaper ads are officially over. And not a moment too soon. Real estate agents and home builders need advertising that works and that doesn’t bleed our budgets dry in one month.
Craig, I agree with you but at what cost. Is it really worth the money to be one of the few on print. The print audience for real estate is dwindling by the minute and the newspapers and magazines have little to accommodate us on the price end. I might feel differently if they were more friendly to us.
Jim Adams – CEO
New Homes Directory.com
When everybody does electronic marketing only, the brokers with a strong print presence will get more listings
[...] As you, my clients and readership, already know, I am adamantly opposed to the traditional means of marketing your homes. I’ve known for far too long that the old way of doing things is more than just old; it’s a waste of resources, further validated by a very well-written post I found this morning. [...]