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Are "Showcase Ads" on Zillow Worth The Money?

By LaShawn Norden

Real Estate Agent with Keller Williams Heritage Realty

October 08, 2008 10:49 AM

Lately, I've received a ton of emails like the one below from Zillow which is promoting their "Showcase Ad" that Realtors (or other professionals in the real estate industry) can purchase.

More of out of curiosity than anything else, I decided to click on the link and create my "ad" to determine what the monthly cost would be...

Creating the ad was pretty simple and it turned out like the one in the example below. So far, so good.

Now that you have a profile on Zillow®, you should know about a creative and highly visible marketing tool called Showcase Ads.

Showcase Ads are:

Targeted - Your ad appears in searches only for ZIP codes you choose
Highly visible - Dominate a ZIP code by choosing a percentage of ad view appearances
Easy to create - You choose your own image, copy and links
Flexible - Cost is based on ZIP code location and percentage of ad views

Create Your Zillow Showcase Ad

Find out more about Showcase Ads

Sample Showcase Ad:

The next step was to identify which zip code (or codes) I wanted to market to and how much exposure I wanted (25%, 50%, 75% or 100%).

Because I live and work in Lake Mary, Florida, I opted to market to the 32746 zip code in Lake Mary.

Based on Zillow's stats, if I wanted just 25% exposure (which equates to 6,000 impressions), it is $97.00 per month.

And so now, I have a few questions

...How many agents can attribute business to having a "Showcase Ad" on Zillow?

...Do Buyers actually search for an agent on Zillow or do they search for homes and the agent is the beneficiary as a result of them having a listing that a Buyer would like to see?

...Would you pay $97.00 per month to reach 6,000 people?

As you might tell, I am sitting on the fence with this one.

I advertise my listings in MLS, REALTOR.com, Zillow, Craig's List, Active Rain, and at least 20 other sites...but the key is, in order to advertise listings, you have to have listings and I'm not so sure that Buyers are going to Zillow to find an agent, but rather, to find a home (or see if the listing price of that home is on target with what the Zestimate says or not)...

Your thoughts and comments would be appreciated.

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If you are a Buyer who is interested in knowing more about a Seminole County city such as Altamonte Springs, Casselberry, Fern Park, Oviedo, Lake Mary, Longwood, Sanford or Winter Springs, contact LaShawn Norden, PA, REALTOR, ALHS at (321) 377-0157 or at LaShawn@LaShawnNorden.com.

If you are a Seller who has a home to sell in Seminole County and values having a marketing specialist with Real Estate license on your side,
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Yvette Smith

LONG & FOSTER - Williamsburg, VA

Realtor In Williamsburg VA, Homes for Sale

HI LaSHAWN!!

With all the freebies that are out there, does it make sense to pay anything. Especially now, when money is a huge factor, doesn't it makes sense to utilize all the freebies? And yes, how many buyers are looking for agents on zillow? Makes sense!

Oct 08, 2008 02:54 PM

David Gibbons

Zillow.com - Seattle, WA

Hi La Shawn, David from Zillow again,

Ha - great negotiating! So, if I buy your ad for you, will you split your commission with me? (I am, of course, joking.)

Unlike the vendors that lock you into long-term contracts, Zillow has made it easy for pros to do a one-month test to figure out if Showcase ads works for them. I know that Showcase Ads work. What I don't know is if they will work for your listings and with your marketing pitch. And I'm not a sales guy so I won't make you any sweeeping promises but I will offer you a deal; if you test Showcase ads anytime in the next month let me know and I will extend the duration of your ad for an additional 15 days at no charge. I hope you take me up on it!

Yvette -

You're totally right. Realtors should take advantage of all the good freebies (but not waste time on the bad ones) before they spend money on marketing. That said, with the market as competitive as it is right now and with struggling pro's cutting their marketing budget, now is exactly the right time to use advertising to differentiate your listings and your services.

Linda -

Please read my previous comment - you cannot begin to compare featured listings on Realtor.com (or on Zillow for that matter) to this Showcase ad product. Featured listings do not appear on every page in a ZIP code like these ads do. You can also buy a Hyundai for much less than a BMW but it's no BMW.

Oct 08, 2008 04:14 PM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

Lashawn I have run the ads from time to time and although I have never had a call that said I would like to do business with you because I saw your add on Zillow, I thinjk David makes a good point that it is about exposure and people remembering you. If they see your name in enough places you may get a call.

Oct 09, 2008 01:03 AM

Leesa Finley

RED Properties - Wake Forest, NC

RED Properties - Raleigh NC Real Estate

LaShawn - Interesting comment from David. He'd give you free trial if you split commission. Isn't that indicative of the perception of us?

I have used the ads before - never received a call from them. Doesn't mean that I won't do them from time to time but I have found other avenues more useful for me.

Oct 09, 2008 01:28 AM

Richard Stabile

Re/Max Real Estate Limited - Oradell, NJ

Bergen County New Homes Builder Realtor

Realtor.com has the brand name. The others always have to get in from of the consumers and draw them in. Realtor.com gets them first.

Richard

Oct 09, 2008 03:04 AM

Mitch Ribak

Mitch Ribak - The Real Estate Success Network - Melbourne, FL

I have run an add on Zillow for several months but can't say I have received any sales from it as of yet. I'm a big believer in using my marketing dollars on things that generate sales. Currently I spend almost all my marketing dollars using the Homegain BuyerLink program. I capture leads at a rate of around 14% and I convert those leads to sales at just about 5%. This year we are doing around 250 transactions which most came as a result of traffic from Homegain. With that said, prior to doing any program, you need to be sure your website is set up to actually capture traffic and turn them into leads. I would be glad to take a look at your site and give you my feedback. I do that all the time for my members of The eHomes Realty Network. Most of the time I find that their sites are not ready to capture leads. Once I get finished with them, and get them set up with the proper tools, Homegain's BuyerLink is the next step!

There are a ton of ways to generate business on the Internet. The first question you should ask anyone when they pitch you is, give me someone that has made sales with your product. Usually when I ask that question they have a reason they don't disclose their customers. If they dont' have proof, I don't spend the money. Of course if they want to give me the product for free and let me prove it works, I'm always glad to do that...no takers so far!

Oct 09, 2008 05:22 AM

Heather the Realtor Orlando, Lake Mary

LemonTree Realty - Orlando, FL

First Time Home Buyers, Bank Owned Homes

I am trimming back pay for month services here there an every where and putting one main focus on one site that syndicates me. If you want buyers they want to know you. If you are talking about listings then that's another story. Buyers dont click on someone and say hmm she looks pretty or smart lets work with her, they want to read about you, get to know what you know then they make their decision based on that. Hope that helps.

Oct 09, 2008 05:23 AM

LaShawn Norden

Keller Williams Heritage Realty - Longwood, FL

REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Yvette~I agree...lots of freebie's out there. I'm trying to be more aware of where my properties are posted and what benefits come from being there...both for my sellers and for me personally. I've not ruled out the Zillow showcase ad, just not sold on it either.

David~Your offer sounds like a fair one...do you find that certain "tag lines" or campaigns are more successful than others right now? You mentioned "short sale specialist," which I would imagine would get tons of hits...I would think that's a good one in any marketplace, but before doing that, I guess I should be prepared to deal with the mess that's associated with that "market" as well.

Bill~I agree. Exposure is good. I just wish I could track it and it would have a proven ROI.

Leesa~ I agree. What other avenues are you finding to be more successful.

Richard~As I mentioned, I am a member on Realtor.com also and pay for the enchanced marketing package...just curious to see if anyone has had success with the Zillow ads.

EHomes~250 transactions this year...damn. Yes, I'd like you to check out my website and tell me how I can get just 100 transactions this year.

Heather~Yes, now is a time when we are all being more conscious of how we are spending our marketing dollars. Since you have sponsored Lake Mary with A|R, do you find that it's been worth that fee also?

Oct 09, 2008 07:32 AM

Mitch Ribak

Mitch Ribak - The Real Estate Success Network - Melbourne, FL

Hey LaShawn! I'll take a look at your site and send you an email and a few questions to help me help you a little. I'm sure we can get you going and generating a good revenue stream from your site. I do it every day! Talk to you shortly!

Oct 09, 2008 08:22 AM

Chris Brown- Florida Home Loan Specialist | Certified Mortgage Planner

Chris Brown | Certified Mortgage Planners - Orlando, FL

Chris Brown 407.367.2974

the good thing about slim times is that is encourages us to be more vigilant with our dollars. I knwo i am =0)

chris the implementer

Oct 09, 2008 09:28 AM

David Slavin

Keller Williams Premier - Katy, TX

CDPE, ABR, SRES Keller Williams Premier

Thanks for bringing up this topic. I too have been curious but with a tight marketing budget it may be difficult to commit to $97 mth.

Oct 09, 2008 10:48 AM

Michele Reneau

Certified Staging Professional (CSP) Elite Instructor - Summerville, SC

Realtor, GRI ~ Charleston, SC Relocation Experts Team

I've been posting/enhancing/contributing to zillow.com with my listings since the beginning of the year. To date, I have not yet received any inquiries off any of them. I got leads from Realtor.com even when I wasn't a featured realtor. I've been a featured agent on Realtor.com for 3 years and feel it's been the best ROI for my money.

Oct 09, 2008 03:06 PM

Paddy (Patricia) Pizappi

Better Homes and Gardens Rand Realty - Pine Bush, NY

Real Estate Associate Broker Hudson Valley NY

They all say they can bring the world to your doorstep LaShawn but the truth is we need to be out there anyway we can. Our rankings on search engines will get us there with the AR stuff and other free services. I agree that Realtor.com might be worth the bucks but all the others not so much IMHO.

Oct 09, 2008 11:42 PM

Ritu Desai 703-625-4949

Samson Properties - Chantilly, VA

Northern Virginia,Washington DC & Maryland Realtor

I have ran the ads in Zillow for 3 months...did not get any deals out of it but got hits to my website. Which I think is due to my listing. The impression cost so very cheap. Not sure what the going rate are.

Oct 10, 2008 01:18 PM

Rebecca Schrader

Competitive Insurance of Dundee - Dundee, FL

7000 people doesn't equal 7000 potential buyers. I'd find other options. Cheaper options.

Oct 11, 2008 11:34 AM

Pippa Mac

Chevaux Group Realtor, The Woodlands and Spring - The Woodlands, TX

The Woodlands TX Real Estate

Oooh ... love the compete.com graph ... that is awesome! pippa

Oct 14, 2008 03:22 AM

Diane Colborn

Century 21 New Millennium - Waldorf, MD

I have placed an ad with Zillow before, and it is cheap advertisement (per ad) that will give you name recognition. Name recognition is important and gives you credibility. If you are branding yourself in one particular area, that may be worth it to you.

However, if you are trying to generate leads or sell listings, you should probably put the money to more direct advertising as opposed to blanket advertising. I have placed ads from 12x7 in the mall food court to the little ads on Zillow, and have found that tapping into your sphere is more cost effective and more results have come of it. Have you thought about or are you already doing a monthly mailing program? Brian Buffini has a great one. And it is a little more than what you are spending (about $115/mo) but in my opinion worth every penny. Check out www.buffiniandcompany.com for more info on it. Hope this helps!

Oct 20, 2008 03:00 AM

Gene Allen

Fathom Realty - Cary, NC

Realty Consultant for Cary Real Estate

I did the realtor.com zip code campaign for a year and got nothing from it. I would think the zillow would be comparable. Buyers don't search by zip code and when they land on you it is mostly accidental as opposed to them wanting to be in a particular zip code.

Oct 21, 2008 09:46 AM

Sheila Newton Team Anderson & Greenville SC

Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC

Selling the Upstate since 1989

I use the Zillow showcase ads.. i have 3 zip codes going.. they gave me a special price of $99 per month for the 3 zip codes...it is hard to say what you get from them, since when someone clicks on your ad it goes to your website.. zillow does show you how many people have "clicked" through to you though.. i seem to get quite a few... i change my ads about once every 2 weeks or so.. i also do Trulia pro and have gotten several leads from that also. I agree with some other here that it is important to have a website that captures leads for you.. it does no good to get buyers or sellers to your site if you don't capture them.. I average between all my stuff about 60 leads per month.. Hope this helps...

Nov 01, 2009 09:57 AM

David Laven

EXP Realty - Burlington, VT

“The worst enemy to creativity is self-doubt.”-SA

Ok, just got done canceling my zillow showcase. Here is the real deal. I had a very high click through rate to my site compared to most Zillow ads on the site(this is according to their stats they showed me). I bought 50% of my market for a price of 160/month which ='s about 16k impressions or about $10 per 1k impressions!). I tested this against Facebook ads which cost me about $0.18 per 1k of impressions (My ad was similar to my zillow ad and also had a similar click through rate). So just based on these numbers Zillow may be a very large waste of money if you are looking for huge exposure. Hope this helps.

Feb 25, 2010 05:43 AM

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LaShawn Norden

REALTOR, (321) 377-0157, Your Real Estate Advocate in Central FL

Real Estate Resources

Selling or purchasing a home can be exciting and scary at the same time! The goal of my blog is to educate Central Florida Buyers & Sellers about the Good, the Bad & the Ugly things that can happen in a real estate transaction! As an advocate for consumers in Orange, Seminole and Volusia County, I especially enjoy working with first-time home buyers, relocation buyers, sellers of distressed property and luxury home sellers. Native to Central Florida, I'd welcome the opportunity to be your advocate too!

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