Getting the most out of your advertising dollars

By
Services for Real Estate Pros with Stucky Design, Inc.

There are three key elements to getting the most out of your advertising dollars: The right audience, the right message and the right environment.

If you have the right message paired with perfect audience, but you deliver it in a place or at a time when they are not open to it, your message will be lost or ignored. You probably have received a phone call just as you sit down to a nice dinner with the family only to realize it is someone trying to sell you a new credit card, upgrade your cable or some other product. You may already have relationship with that company, maybe you have some interest in the product, but not at dinner time. (right message, right audience, wrong environment)

Now say you buy time on a local radio station to market a new homes development you represent. The station shows you their reach demographics and hits your market of age 35 to 55 perfectly. They are the number one station in that age group and the household income means this audience can afford the homes you are selling. Best of all the radio station offers you a "sweet" package deal. You will get 40 spots per week for the same price as 30, but as you look closer, half the spots are between 8 pm and 6 am. Radio listeners drop off significantly during that time. So, what you are really getting is 20 spots for the price of 30. You would be better off just buying the 20 spots outright for a lower total cost. The other option is the radio station will also put your ad on their sister station who has good numbers in the 25 to 40 range, which is actually heavily skewed to the 25 age side, in prime driving time, but the station is heavy metal. They tell it is like getting these ads for free and you figure it can't hurt. But, actually it can, because reaching the wrong audience not only wastes your money it confuses your consumer if the happen to be flipping through the channels and hear your ad aimed at 35 to 55 year olds on a heavy metal station. Now they are sure if the development is for them or not, it may be too loud. (right message, wrong audience, right environment)

Another issue is that we all get hit up for sponsorship advertising. Let me rephrase that, we are guilted into sponsorship advertising for one cause or another. You want to be a good community steward, but your market is starter homes for young couples, sponsoring a high school theater production probably does you little to no good. But sponsoring a child seat safety check, probably hits right in your market with the message you care about families at a time and place where families are interested in advice from businesses who care.

Advertising homes in a real estate guide makes perfect sense. The consumer who picks that up and reads it has some interest in homes and is receptive to the message. Before you spend your advertising budget ask is this going to my market, do you have the right message, and will this be received in the environment. If you can answer yes to all three, it is a good spend. Two out of three might as well be zero out of three as it will not connect and therefore it is a waste of money.

For a more in-depth analysis of this concept visit http://www.stuckydesign.com/StuckyDesignapproach.html

Comments (6)

Ervin Alston
EMA GRAPHICS - Virginia Beach, VA

Good points to remember.  Thank you so much!

 

Jenny Alston

Dec 10, 2008 02:53 PM
Doug Stucky
Stucky Design, Inc. - Wichita, KS

The right audience is your target market. Don't be fooled by large demographic numbers if they are not specifically your market. If you specialize in golf course properties, you probably don't care about all the non-golfers in your age and financial target. Be specific when spending your money, be focused on your target. It is the who, what , where of marketing.

Dec 15, 2008 08:35 AM
Jake Forbes
United Country Forbes Realty & Auctions - Hertford, NC

Doug, I've never even considered advertising on the radio.  No other agents in my area use this medium.  How does it work for you? I'd like to focus on first time homebuyers. 

Dec 16, 2008 12:43 PM
Doug Stucky
Stucky Design, Inc. - Wichita, KS

Radio casts a wide net. Our clients that have used radio either offer products that the vast majority of people can use or they are trying to drive awareness to something specific such as an event, product or promotion.. This plays well when you are trying to open a new subdivision or running a short-term promotion where you are trying to create buzz as well as get people interested in a hurry. Radio can good short term effects.

I have heard several Realtors on the radio, and they primarily talk about themselves, what makes them different. They are not property specific, but rather trying to get that particular radio audience to remember them and for future reference. Mass media can be very effective in getting your name out, but it requires a lot of churn to support it and sustain it. If you plan is to use radio or TV to do image marketing you need to be consistent and keep  it going or becomes forgotten. 

Since you are focused on new home buyers you would look for demographics on probably 24 to 35 years old and see what they are listening to. when and where? Make sure they are not all on an ipod instead of listening to the radio. The right audience, the right message and the right environment.

Dec 17, 2008 01:00 AM
Jake Forbes
United Country Forbes Realty & Auctions - Hertford, NC

Thanks for the advice Doug.  Do you think Radio would work for 822 acres of land where about to offer at auction?

Dec 17, 2008 12:45 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Thanks for the great advice.  I think too often real estate agents try to be too broad with their message.  I am working on that myself in order to target my market.

Dec 18, 2008 05:59 AM

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