WHERE DO YOU PLAN TO ADVERTISE YOUR SERVICES IN 2009?  Following is Chapter 1 in a series examining real estate advertising for real estate agents.  Real estate agents are usually the members of a brokerage who generate the sales and manage the transactions that keep our industry alive.  We represent home buyers and sellers.  However, most real estate agents are responsible for generating their own buyer and seller business.  We are also targeted by many to buy advertising.  Let's make sure that we are not "the lead".

HOW DO REAL ESTATE AGENT PROMOTE OR ADVERTISE THEIR SERVICES? 

LET ME COUNT THE WAYS:

• Real estate magazines
• TV advertising (Cable)
• TV advertising (Local and network stations)
• Radio advertising
• Newspapers
• Internet Pay-Per-Click
• Internet directories and search engines
• Web site(s)
• Blogging
• Internet networks
• Floor duty
• Buying leads
• Door hangers
• Open house
• Title companies
• Loan officers
• Cold calling
• Door knocking
• Home buyer seminars 
• Yard signs
• Listing brochures
• Direct mail
• All that I forgot

Over the years and before my real estate life, I've used all of the above with the exception of:  Buying leads, Title companies, Loan officers, Cold calling and Door knocking.   Take what you will from this series.  Hopefully, we'll learn from each other and manage our advertising dollars well in 2009. 

GETTING READY FOR 2009.  Planning your advertising budget will serve to keep you (1) in budget (2) on schedule (3) safe from the cold callers who claim to have a "unique" new web site or place to put an ad.  Where are you going to spend your advertising money?  What advertising media or programs did you use in 2008 and what can you identify that your know produced business, buyers or sellers?

SPEND THOSE ADVERTISING DOLLARS CAREFULLY.  Most agents and brokers who have been in the real estate business for any length of time have probably used many of the advertising ideas above.  Over the years, I have used many with varying results and have come to the conclusion that "it's all in the numbers".

YES!  IT'S ALL IN THE NUMBERS.   STOP THROWING MONEY AWAY!   Investigate that medium, service,venue or web site before you spend your hard earned money.  Few agents have the advertising background to be able to determine the ROI (return on investment) for their advertising dollars.  Too often I hear agents try to justify the use of a particular advertising activity with "I got enough business to pay for the ad or leads or . . . . .".   To have done nothing would have been more profitable because the time and $$$ to manage the advertisement with no positive ROI could have been used for other activities that could have shown a positive ROI. 

In this issue:

Real estate magazines - Real estate magazines were once a great way to advertise listings and make the phone ring in "targeted areas".   Through consolidation of the areas, the magazines have become less "targeted".   Further, I can't justify the cost of an ad in a real estate magazine for an ad that will have a shelf life of 2-4 weeks.  IMO, the magazine ads are only cost effective for large brokerages that can benefit from "institutional advertising" for market share.  For individual agents, the numbers are just not there to justify the high cost of advertising a listing or service.  This medium has changed over the years and agents can now have their own telephone number in the ads.  Still, the magazines do not generate sufficient numbers of contacts to justify the short shelf life and high cost. 

TV advertising (Cable) -Advertising a listing on cable will reach a local audience.  One would presume that the audience would be folks in the market to buy a home.  The cost for these short ads is reasonable and they serve the purpose of satisfying sellers that their listing agent is wonderful.  However, most of these shows are now dominated by new home builders and, like it or not, most resale homes, even the luxury properties, do not show well when compared to the new home builders model homes and well trained new home representatives presentations. 

Streaming TV ad to TV station web site.  TV broadcasters blend on air advertising with Internet advertising.  When you buy TV spots, you can also buy ads on the cable's Internet site.  The theory is that folks go to the Comcast or station web site and the advertiser's banner ad will produce.  These banner ads are a form of Pay-Per-Click (PPC).  In my experience, the Cable web site does not generate a sufficient of viewers or clicks to justify the cost.  Comcast reported traffic to me monthly with glowing reports of the numbers and I was not impressed.  I have a lot of experience with PPC and the numbers were just not sufficient to be a predictable source of business. 

TV advertising (Local and network stations) - Very expensive for 10-20-30-60 second spots.  With the exception of institutional advertising for large real estate companies or brokerages, the cost of TV commercials is extremely high.  The production costs for a 30 second TV ad is likely to be several $$$$thousand dollars.  Broadcasting a 30 second ad on cable TV (i.e. Comcast) is going to be $$$$thousands more and the advertiser has limited control over the schedule or placement of the ad in the rotation or area covered.  Local or National media is even more expensive although the ad will reach a wider audience.  However, most individual agents do not cover a geographical area wide enough to justify the cost.  Targeting the ads to a desired audience is not always possible. 

Radio Advertising - Usually cost effective only for large brokerages.  Brokerages who can pay the cost of "drive time" radio spots who can provide quick response to inquiries may benefit.  The wide spread use of cell phones was very helpful to radio advertisers who relied on direct response.  Consumers needing real estate services could respond with a timely (immediate) telephone call.  The key to profiting from radio spots is being available to the consumer when the phone number is broadcast. 

Chapter 2 coming soon:

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-Mail.