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Google Adwords Don’t Work For Real Estate

By
Real Estate Agent with Keller Williams Realty - Global Trust Team

For those that have read our posts before, maybe this comes as a surprise, after all we are major supporters of paid online advertising.  My revelation that ads don't work comes after speaking with agents all across the country.  One of the most common items I hear is that they want traffic to their websites, but it can't be with Google Adwords because it "doesn't work".

I have to admit that I was shocked that this was one of the most consistent answers.  After all 95% of Google's 21 billion in revenue in 2008 was made from Adwords, but apparently it doesn't work for every industry (real estate must be the exception).  Just as I was crafting my notes to write a letter to Larry Page and Sergey Brin I thought it best that I dig a little deeper into the conversations I was having.

The reason that Google Adwords isn't working for most real estate professionals isn't Google's fault, it's how it is being used by those in real estate.  The flexibility of the system is what has allowed many online marketers to make millions and also allows many to waste the same amount of money.

Here are three of the most common mistakes that real estate agents (and many others for that matter) are making when they are doing their paid advertising on Google.  Avoiding just the following 3 items will save some serious frustration and money.

  1. Pointing Ads to your Home Page - The home page of your website is not nearly focused enough to be able to convert that great traffic into leads.  Take time to point your ads to detailed pages within your website that make it easy for the visitor to volunteer their information.  When you stop pointing your ads to your home page you can easily see an increase in your overall ad performance by 50% or more.
  2. Bid strategy - Although being number one in real estate is great, being in the number 1 advertiser position seldom pays off.  At the top position you generally pay the most and often get the impulse clicker who want take any action on your website.  Place your bids that place in your ads in positions 3-5 and watch how your clicks turn into leads.
  3. Keywords - Keywords are at the foundation of how you write ads and bid on them.  The problem for most advertisers is that too many keywords are grouped with each ad.  Taking time to group ads with just 8 keywords will increase your click through rates and lower your costs...yeah!

Google Adwords is certainly one of the best ways to get targeted traffic to your real estate website, enabling you to have leads every day.  We certainly don't want you to be part of the group that says "Adwords Don't Work" because when done correctly you can get highly motivated clients for less than a cup of coffee.

For those who have had success with their Adwords advertising, we can't wait to hear some of the other lessons you have learned that have saved you money and keeps the leads flowing.

To your success.

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Show All Comments Sort:
The Real Estate Professionals
Real Estate Professionals - Salt Lake City, UT

Good input. I would highly reccomend testing your heaadlines; it's amazing what difference a few words ina headline can make.

Sep 01, 2011 10:15 AM
Richard D. Chapin
Arizona Elite Commercial - Payson, AZ
PLLC - Commercial Real Estate

haven't used PPC yet that is good information to have Thanks.

Sep 07, 2011 05:42 PM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Two years - and this is still a great post! Couple of good tips on bidding strategy as well as pointing your ads to details page as compared to home page.

Sep 18, 2011 05:40 PM
Dominic Giusti
DIG Marketing - San Diego, CA

Adwords most certainly does work for real estate. It has to be done correctly. Adwords job is simple. Drive traffic. You set the keywords and ads. Now lets say you are driving traffic to a site, the site needs to be set up correctly to actually capture the traffic. We use adwords succcessfully for several of our real estate clients. Most of them come to us complaining that they couldn't figure out why adwords wasn't working for them. You need to drive the right traffic and be specific about where your trying to drive traffic from. The adwords accounts we set our clients up with are complimentary so I don't mind sharing some trade secrets here.

When using an adwords focus on the cities you work in. The city that gets the most traffic is usually the largest city in the area. Then focus on keywords for those specific areas. It's important to remember that your site should also focus on those areas or you'll lose the traffic you've been receiving. Google has a very handy keyword selector tool to help you find more keywords as well.

The bottom line with Adwords is that it will help you drive very specific traffic to your website. If the site isn't set up correctly to capture your traffic you won't generate leads. Having a site set up for good seo and having it set up with a good capture rate are two separate things. Having your site built for SEO will help to increase your organic rankings in the search engine but does nothign to actually captrue that traffic. It's a combination that will help you generate leads.

Discussing how the website is set up is the other part of this equation but I think that is a subject for another post. I did a blog about it on my active rain profile if anyone needs more information.

Sep 22, 2011 07:18 AM
Gayle Beyer
Welcome Center Realty 772-336-8583, FLA777 - Port St Lucie, FL
Port St Lucie FL Real Estate Broker

We contribute alot of our success to Google adword but You have some great suggestions here. Iam going to check with my marketing person to see where we bid for. Thanks

Sep 24, 2011 03:06 PM
Kenneth Fisher
Cape Fear Real Estate Solutions, LLC - Wilmington, NC
BeachTownBrokers.com, Remax Essential - Wilmington, NC

The trouble we had with Adwords was that they wouldn;t approve ads on our sites (not our home page as mentioned) because they said we couldnt promote a landing page that linked back our home page, which I thought was rediculous.  I went around and around with them until I decided it wasnt worth losing my sanity over...rrrr..I'm over it now

Oct 13, 2011 01:41 PM
Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h

I had mixed results with Adwords.  I do believe that it did develop traffic, which is the goal but I don't think that the traffic sent to our website translated into customers so much as it gave me the opportunity to pay for window shoppers.

Nov 06, 2011 03:45 AM
Luis Iniguez
Option One Real Estate - Fontana, CA
Search Inland Empire Homes For Sale - Short Sale Agent

Adwords could sometimes add up pretty quick.  Especially with several campaigns.  Need to manage closely.

 

Dec 08, 2011 03:59 PM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

Great post- as relevant today as when first put up.  Targeted landing pages sound like the best answer for lead capture. 

Jan 09, 2012 01:31 PM
Nick Good
The Good Home Team with eXp Realty - McKinney, TX
www.TheGoodHomeTeam.com

I agree - great posts.  We have had great success with out campaigns.

Aug 14, 2012 05:44 AM
Olga Vasquez
Park Regency - Granada Hills, CA
Olgasells

thank you for your tip!

Sep 04, 2012 07:21 PM
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

James, this is very helpful info.  Google Ad Words are becoming very popular.  It's good to know what to avoid.

Sep 08, 2012 06:38 AM
Steven Nickens
Hawaii Life Real Estate Brokers - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

I agree with 3rd or 5th position. What about the longtail keywords for low dollar amounts per click.

Feb 26, 2013 12:58 PM
Kerry Lucasse
eXp Realty - Urban Nest Real Estate Group - Atlanta, GA
Your Urban Nest Atlanta Real Estate Consultant

Excellent post, James!  Even though you wrote it years ago, it still holds true.

May 31, 2013 04:58 AM
Chad and Sandy Neumann
Chad and Sandy Real Estate Group - Jacksonville, FL
Jacksonville Realtor (904-414-6200)

What a great post (your personal web site is also impressive.) I'll be following you!

I personally get most of my leads, and most targeted leads from keyword optimized blog posts and "pages."

Jul 25, 2013 11:41 AM
Matt Kombrink
One Source Realty - Geneva, IL
Your #1 Source For Real Estate

Thanks for your thoughts on the subject.  Our team has gone back and forth with this strategy and currently are not using the paid advertising.  While I think it does generate traffic, my own personal belief is that consumers will click on organic before paid results... Just my opinion, nothing to back that up.

Aug 06, 2013 02:03 AM
Joan Rogliano
Rogliano Real Estate Group - Denver, CO

Very informative read thanks for the post!

Apr 22, 2014 02:27 AM
Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Excellent post to have maintained well with the test of time.

Jul 04, 2014 08:14 PM
LUXURYSOCALREALTY COMPASS La Jolla
Compass - La Jolla, CA
San Diego Partner - The Private Client Network

I also noticed that for awhile with too many idx widgets my page load time was running too high and that was affecting my campaigns.  Adword bidding is very expensive here in southern CA for high end community keywords.  Back in 2008 I was doing "first time home buyer" keywords and referring those deals out for referral fees.  It was nice supplementary income.  Now those keywords are so expensive it doesn't make sense to invest strictly for referrals and instead gear towards "luxury" related keywords.

Dec 12, 2015 12:28 PM
JM Padron, CCIM, CCP, MRICS
THE JMTEAM NETWORK - Dade City, FL
CCIM, CCP, International Commercial Broker

We use Adwords for specific campaigns in Commercial Real Estate, and I think it works pretty well, generating the leads we really want.

Mar 12, 2016 10:05 PM