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Print Advertising in Real Estate May Not be Dead, but it's in Serious Condition

By
Real Estate Broker/Owner with Madeline Island Realty 50317-90


Print Advertising in Real Estate May Not be Dead, but it's in Serious Condition

 

This subject always seems to start an argument with at least a few real estate agents, but it bears repeating.  Print marketing in real estate is increasingly losing its usefulness when it comes to reaching the largest possible number of prospects at the lowest cost and in the most efficient manner.

NAR 2011 statistics indicate that 88% of buyers use the Internet (one percent higher than those who use an agent, which is 87%).  Yard signs are at 55% and open houses at 45%.  Newspaper is at a meager 30% and if you talk to ad managers at "big box" real estate companies who buy space in major metro newspapers, they'd tell you it's more like 15%.  Home books and magazines are at the bottom (like coffee table magazines or "shoppers").

Even FSBOs understand the declining value of print advertising.  The 2011 NAR statistics showed that only 17% of FSBOs (on average) used newspaper advertising to market their home.

According to Better Homes & Gardens, 89% of buyers who used the Internet were likely to use a real estate agent (versus 70% of those who did not use the Web, a gap of nearly twenty per cent.  Agents, you want prospects to call you, right?

At a time when company dollars are tight and some in the industry are struggling to survive, you have to play the law of averages.  That means putting your marketing budget where it has some sort of realistic possibility of achieving results.  Print is falling off the scale when it comes to reaching and grabbing serious buyer attention.

If you have to use print, do it sparingly.  That means coming into the twenty-first century and realizing that newspaper ads, free community "shopper" magazines and tabloid real estate mags just don't cut it anymore.

A listing flyer or grab-and-go brochure may still have some value.  If your office has a walk-in clientele (such as you'd find in a second home or recreational community), it's useful to be able to hand walk-ins a listing brochure that they can stuff into a pocket or purse.

Sellers, if you're considering listing your home with an agent who relies heavily on print marketing, ask yourself what the chances are that such an agent can sell your home.  How many buyers will even see your listing or become aware that your property is for sale? 

 

 

 

 

 

Comments(16)

Lindsey Hasford
Edina Realty - Elk River, MN
Bringing you home...

Love the numbers. They speak so truthfully. Don't do much print advertising anymore, but talking agents around my area into certain aspects of social networking leaves me in a minority for sure.

Jan 07, 2012 04:22 PM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker Realty, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Eric - Great information for sellers to have.  Print verses the Internet, the numbers tell the story. 

Jan 07, 2012 04:27 PM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Eric -- Good information and this certainly needs to be discussed during the listing appointment.  Set the expectations for marketing and what will/will not be part of the overall package(and the extent if any) that will actually sell their home.   

Jan 07, 2012 04:50 PM
Sherry Chastain
Hendersonville, Nashville, Old Hickory, Lebanon Tennessee - Hendersonville, TN
Realtor, Selling Homes, Lake Properties,Luxury Homes,Short Sales

Quiting print advertising is like quiting smoking. You know you should. But no matter how long since you quit you still have the earge. I look at the thin Buy A Home book and think I should run an ad, not many agents are. Maybe someone would see my ad. NOT. 

Jan 07, 2012 05:28 PM
Jon Wade
The Steamboat Group - Steamboat Springs, CO
Steamboat CO Real Estate

I couldn't agree more, we have to base our efforts on data like this not hopes based on how things were 10 years ago.

Jan 07, 2012 06:58 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

I quit print CLASSIFIEDS COLD TURKEY 5 years ago - our local print newspaper LOST $3,500 to $4,500 a MONTH when their ONLINE edition would not FIX the hyperlink to my website...NUFFSAID!

Jan 07, 2012 10:20 PM
Faye Y. Taylor
StepStone Realty, LLC - Floresville, TX
Country Living with City Convenience -Wilson Co TX

the only print we use is what is provided thru KW and a line ad in our local paper which links to our website.  Our old broker thinks they need it and spends a bundle on a big ad every week.  On phone duty, it was RARE to get a call that said "I am calling to ask about xxx in your ad."  The only thing I know I got was a listing from a friend who saw my picture in the ad and wanted me as his Realtor.

Jan 08, 2012 04:30 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Lindsey - I'm surprised that print ad salespeople are still able to make a living, at least when it comes to selling real estate placements.  The value of print marketing just isn't there anymore. 

Jan 09, 2012 03:44 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Laura, we tell our sellers this on a regular basis.  Only a few are resisting the idea of focusing on the Web, mostly those who still rely on the newspaper and who aren't comfortable with a computer.

Michael - We still encounter a few sellers who want to see their home pictured in a "vanity" coffee-table real estate listing book, even though they know it doesn't work.  Our policy is that placements in print publications which offer a negligible chance of success can be included in the listing package on an ala carte basis if the seller wishes to pay for them.

Jan 09, 2012 03:49 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Sherry - That is an excellent analogy!  The lure that print ad salespeople use is vanity (seeing your name and your company name and your photo in the newspaper), combined with lots of promises that folks will see your ad and actually remember you.

Those thin "Buy a Home" booklets, printed on newsprint in tabloid format, wind up in the reader's recycling bin within 72 hours of the date they are issued, along with yesterday's newspaper and all the newsprint coupon inserts stuffed inside the newspaper.  That's a pretty awful retention rate for something which takes a bite out of your company budget.

Even a billboard or bus bench has better reader retention than newsprint.  At least they stay up for months at a time.

Jan 09, 2012 03:55 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Jon - I show these statistics to every one of our sellers.  And I update the statistics as they become even more glaringly obvious.

Jan 09, 2012 04:03 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Wallace - Local newspapers haven't gotten it yet.  They're still used to the good old days, when all they had to do in order to please the advertiser was to get something into print.  Even their online editions don't respond very well to customer requests.

Faye - We experimented with newspaper and magazine placements over a period of several years and we had a near-zero response rate from them.  The response rate from handing out our desktop printed three-panel flyer was far superior to anything in newspapers or magazines. 

Jan 09, 2012 04:14 AM
Jeff Ragan
Ming Tree, Realtors Real Living - Eureka, CA
Luxury Agent, Northern California

While I believe wholeheartedly in the numbers you quote, I love print advertising.  I have a robust presence on the web and social media.  I'm not recommending that an agent rely heavily on print, but it is a great media for those folks passing through or vacationing.  I especially like the glossy magazines, as their shelf life is great.  I once had a client call me on a 3 year old listing!  He felt kinda foolish that he was calling me from the "wrong" magazine - he had a current one - but he had kept the out of date one because it had his dream home in it.  If you still think I'm nuts, here's a link to a blog post I wrote that defends my position more fully:  http://humboldtproperties.blogspot.com/2010/03/is-print-advertising-dying.html

Jan 15, 2012 04:03 PM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo
 

thank you very much for the informative and interesting post. I get so much out of the active rain network.

Mar 27, 2012 12:29 AM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Jeff, if print works for you, there's no reason why you shouldn't continue to use it. I only mention the statistics because these changes in consumer reaction to print are influencing the way that major corporations are budgeting their ad dollars. I think that's worth considering.

Mar 27, 2012 11:17 PM
Eric Kodner
Wayzata Lakes Realty: Eric Kodner Sells Twin Cities Homes - Minnetonka, MN
Wayzata Lakes Realty: Twin Cities, Madeline Island

Paul - There's a lot of great information on this site. Some of it gets lost in the crowd, but kudos to you for reaching out and taking advantage of the opportunity to learn here.

Mar 27, 2012 11:19 PM