For the last 3 years I have been telling my agents, my customers, and anyone else that would listen that print advertising for real estate is on it's way out. The listings were old, the ads didn't contain the newer listings, and you weren't able to get a feel for the home like you can with virtual tours and online video.
Apparently, I was right. A new study conducted by Harris Interactive and sponsored by Intel Corp. finds that 65 percent of adults feel they cannot live without Internet access. Additionally, 71 percent consider it important or very important to have Internet-enabled devices, such as laptops and mobile communications on hand almost constantly.
According to the survey, 46 percent of women and 30 percent of men would rather go without sex for two weeks than give up Internet access for the same amount of time. For women ages 18-34 it was 49 percent and for women ages 35-44 it was 52 percent. For men ages 18-34, it was 39 percent. I don't know for sure, but I would guess that newspapers and other print advertising have NEVER experienced that kind of popularity!
Obviously, the study didn't focus on real estate, but if people are that passionate about Internet access, wouldn't it just make sense that the Internet is where they are going for their information? The 2008 National Association Of Realtors Profile of Buyers and Sellers says that more than 90% of home buyers 44 years old or younger used the Internet as a source of information during the home buying process and 87% of ALL buyers used the Internet during the process. It goes on to say that 69% of buyers used the Internet FREQUENTLY to find a home compared to 15% that used a print or newspaper advertisement frequently to find a home.
If you are a professional listing agent, it only makes sense to spend the bulk of your advertising dollars online. We're in our 2nd year of 100% Internet advertising. We've invested heavily in our website, SEO (search engine optimization), and listing syndication. In November we had over 652,000 page views of our 53 listings on just Realtor.com. That's over 15,000 views per listing in a single month. If you consider that Hitwise gives Realtor.com a 7.68% market share and our listings are are also on seven of the top ten real estate web sites (as well as hundreds of other sites), we estimate that each listing is viewed an average of 150,000 times each month!
There isn't a publication in the world that can guarantee that my listing will even be noticed in the pages that they print, but with inexpensive (or free) tracking software, I can tell my clients how many times their home has been viewed, how many times the virtual tour has been taken, and how many times, the potential buyer has looked at a video of the neighborhood. I can even communicate all of this information to the customer on a weekly basis with just a click of the mouse. It doesn't surprise me a bit that half the adults would rather give up sex instead of Internet access. This is exciting stuff!!!!
I'm with you, our company has scaled way back on print ads and my team is not doing any. Once people search for homes on the internet there is no going back to print.
Interesting study results. I knew the Internet was important but did not realize its true value!
Steve - Yes, print is a waste of money. Thank God for free advertisement like AR.
We stopped print other than the Sunday paper ads for open houses. Now, on the survey - I don't agree with the 46% piece! LOL!
I stopped print ads too, Steve. The net is the way to go!!
Steve - this is further validation of what we all know is true. When was the last time I used anything in print personally for research? Hmmm...well, I used to look up phone numbers in the phone book as recently as four years ago...
Print is the biggest waste of money and we tell our sellers that. Sometimes sellers just like to see their homes in print because it makes them feel good but it doesn't work.
Steve, our local paper recently announced that it filed bankruptcy to get their finances in order. The car dealerships and Real Estate companies have cut their advertising over the past few years. Why, because the print advertising was not getting them the business.
Hmmmm Its a toss up with giving up sex, I would have to think about that one! (my husband just got back from a 2 year deployment to the desert, can you blame me?).
Interesting facts, love it!
I agree and I think the newpapers also have seen this trend. Many are offering online options for advertising.
Hi Steve; I love "the rather go without" research. Pretty funny. Though the research is serious. I am very impressed with your office going 100% Internet advertising. That takes guts! Congrats.
It's been hard breaking from tradition.
Steve... Very interesting.. I stopped magazine ads over a year ago.. did a test market for 2 monthsrecently.. and YEP.. I was right.. Waste of $$$
The internet is definitely the way to go. I do run an ad in our local papers, too, however, to please the seller and for the few folks who probably do search the papers. AND to support my local paper which I don't want to fold.
I am really surprised by the 65% number. I expected 75 to 80%. I certainly would give up a great deal before I'd give up the Internet! :) I do very little print - one local homes book published by our hometown paper. Even that book is now online!
Those are awfully strong words that the poll came out with. I'm betting you're right about print advertising.
I am glad I don't have to make that choice. But print ads, boom out of here.
Steve, I no longer do print advertising..stopped it about a year ago...I was tracking my leads and ZERO came from the print, for nearly 6 months...I do a print ad in the paper for open house when needed...otherwise, no more print:)
What's the debate? It's free, it works. Enough said!
Kathy
I can give you proof about the women and the internet! My girlfriend is seriously addicted. I am not exactly trying to purchase a home, but all of the looking I have done is online. The internet is so powerful!
I print some postcards occasionally for special reasons. But then again - they always point to my profiles and websites :)
It took me a while, but I have weaned myself and now I'm free. I totaly agree with you.
We have given up practically all print -- the Internet is where it is at . All the best.
Steve, I won't give up print completely, but have certainly funneled more dollar into Internet marketing.
I strongly agree with stopping print advertising. Sending out postcards during the holidays and calendars at the first of the year to my realm of influence is all the print advertising I have done in months. Putting my money in a nice website has been money well spent, using free websites and social blogging has given me more leads than print ever did!
Steve,
Right on the money!!!! I've been saying the same thing...telling sellers the truth...that the reason why agents have EVER advertised in the paper was because a flurry of ads could bring inquiries that would be added to their buyer pool, but that it did very little, if anything, about selling a particular house. And with the onset of the internet, with interactivity, visibility, all the photos, maps, school information, etc., why would a consumer scour a newspaper for a little 4 or 5 line ad with abbreviated "realty speak" (3br 2ba 2cag fp bmt cac....you get the picture!) when they can get the whole enchilada with a click of the mouse. More quality for buyers, significantly better exposure for sellers. And, as others have said, the price is right!!!!
Thanks for the post!
It's an easy choice (internet over print) and I've found my clients are pleased with the results too.
the print publications are also making their way onto the internet and cutting back on the number of printings they are doing. this has been going on for some time and while they may never stop printing, it might get harder to find a print copy.
Steve,
Very interesting information. We are all becoming more attune to the internet and this just seems to be a validation of what the future holds. Thanks
How old are your clients? I have many older clients that don't really understand the Internet. I agree it is very effective, but some clients still need an ad they can hold in their hand.
I heard that on the news about the sex vs. internet statitics. My first thought that they obviously did not poll realtors because it would have been even higher! :o)
Interesting comment about older clients wanting something they can hold in their hand. For those folks, I'd print out a copy of the internet marketing for them to hold...then I'd got about doing what they hired me to do ... market and sell their home. They hire us to use our skill and knowlege for their benefit. If a seller wants me to do something I know is a waste of money...I'll do it...provided THEY pay for it! [[[ smiles ]]]
I still can't decide if I would give up the internet ......
pippa
Steve, congratulations on the well deserved gold star! Powerful stats on the power of the internet!
Yes, print ads are hardly worthwhile anymore except to show to your seller client.
I have had much more success at much lower costs with online advertising than with print!!
I have had much more success at much lower costs with online advertising than with print!!
Steve, do you know how many phone calls my newspaper ads get? ZERO. I know because I ask every person who calls, where they found out about me.
Regina P. Brown
Allison James Estates & Homes
I think that you have made a bunch of good points. It is crazy to me how many agents will spends thousands of dollars in the local newspaper and most people, if they even still get the paper get it online. In today's world when you want to know somthing, you just simply go to goolge and "goole it".
I started waving goodbye to print advertising about 3 years ago too. The ONLY things that go in the paper (as well as the online ads) are Open Houses, and occasionally lower end rentals. We're still routinely plagued by our local newspaper/magazine people, but they just stop in so they can tell their bosses they tried with us...
Its ridiculously expensive and mortifyingly (is that even a word???) ineffective. Thanks for your post validating my point of view!
With the exception of Open House ads in the major papers, which still produce buyers, news paper, magazines, etc, are history.
As more and more MLSs add Open House navigation, even that small window will be closed for the newspapers.
Good. Real estate advertising has fed the coffers of newspapers for decades and they returned the favor by competing with us for leads to sell back to us, advocating FSBO, Fed for Service non representation services and more.
The primary ads in the Wash. Post these days is new construction.
Steve, It is exciting stuff. The only codicil I offer is this: I work an almost entirely retirement market. I deal with an unusually high number of sellers who don't even own a computer and it's hard to get them to accept that their home will not be featured in the local HOMES magazine. Do you have any experience with that age group and how I might address that.
We have reduced our print by bout 70% and are looking actively into the best areas for our online. I agree, paper and ink are quickly becoming the dinosaur of the decade.
Steve, I remember a quote from a realtor about two years ago.."Today's paper is tomorrow's cat litter."
Steve, so true and great stats in your post ! Especially the comparisons to "going without sex for 2 weeks" LOL . We shifted our marketing to the internet a few years ago and are already receiving dividends from that strategy.
Very true, and I saw that study online. Most companies have slowed down there print advertising in Ann Arbor. Just this week the Detroit News and the Detroit Free Press are only delivering their papers a few times each week.
I heard even the LA Times stopped their Sunday realestate pages
I totally agree. You should see what our local real estate section looks like now as compared to a couple of years ago. The newspapers must be hurting when we aren't paying their crazy exorbitant ad prices anymore.
Amen Brother!!! My partner and I moved to pure net advertising about two years ago. Recently we were forced to do a pring ad by one of our clients. After two months, we told that client we weren't going to the print ad any more. We sat down and showed her everthing you spoke to in your post. She was amazed and didn't pull her listing. We will never cave again!!! Thanks for the post!
Internet only.... Tried print didn't like it thought I was going to die.....
I have not done a print ad in over three years other than an occasional promotional piece. I see no reason to invest in something with little return. An agent that spends time and money on SEO is a wise agent. Not sure about giving up the sex part though:)
Well, what kind of sex? I mean....there are a lot of variables there. I put most of my money into the internet, but I still get a response from my mailings that I send out. The internet will get the bulk of my money, but I have proof that some print advertising still works.
It has been a well known fact that the inter-net is the place to be in real estate. The newspaper companies across the nation have laid of thousands due to the high exposure of real estate presence on the net.
Sorry, the survey has to be wrong on the sexual theory. What healthy m/f would abstain from sex for two weeks when choosing one over the other. Maybe we need an activerain survey, sex versus the iner-net
I have pulled all of my print advertising -- I am 100% Internet marketing -- and the more blogs that I read -- I see I am not the only one -- JE
Steve - great statistics. The reason I joined AR was to learn more about the internet, SEO, and where I should be headed. It makes my head spin sometimes but I know I have to learn it! Thanks!
Thanks so much. I also use 100% online advertizing. I use zero print advertizing, except folders, biz cards, small stuff like that.
Steve,
This is a great post and truly shows the value of internet marketing and the necessity to have your real estate business online. I also like how you further mentioned the additional work you put into your online marketing. It isn't just about putting the information on the web, but also to track your success. Having your business online will give you the chance to truly measure your success.
Again, great post!
Steve: Thank you. I too have found an online presence to be helpful. I don't spend a lot of money advertising online but have found that people find me online. And the effort has been fairly minimal; maybe an hour a day in the off hours. I'm glad you've had success. I believe a successful businessperson employs alot of different strategies to get the word out.. Obviously, the big one is face-to-face marketing although an online presence can lead to more face-to-face encounters. Thanks again! Have a great day!
I agree with you completely. Our print advertising is minimual and not really directed at the listings at all. The Net is where it is at.
I agree as well. They say 80% of the buyers look online before contacting a RE agent.
I agree as well. They say 80% of the buyers look online before contacting a RE agent.
The National Association of Realtors Released a study in 2007 that outlined the following:
1. Method of home purchase, by use of internet:
a. Agent/broker - 81% b. Direct from builder - 10% c. Direct from previous owner whom buyer didn't know - 5%
2. Actions taken as result of using internet site:
a. Drove by/viewed a home - 73% b. walked through a home viewed online - 57% c. Found agnet used to seach/buy home - 23%
Steve,
You are right about the internet. The issue that I see most realtors having is not knowing how to effectively list properties online. That is why I have offer a workshop for realtors, boat, auto, or rv dealers on "How to Make Your Online Listing Work For You". I teach them the system, and the sales element to listing online. These are the same priciples that were used at a RV dealership, and boat dealership. The RV dealership in one year did $11 million in online sales, and the boat dealership did multi-millions in online sales. I teach individuals how to list, and get results. It doesn't matter if they do it themselves, or use a third party. We have an upcoming workshop on Jan 12 in Horseheads, NY. Go to dadztours.com for more info.
So great to go out in the world to talk to my clients today armed with those numbers, thanks for sharing!!! I've been trying to get them to stop wasting money on print for over a year now...except I still think luxury homes should go in the specialty magazines...but that's about the only instance that I find it's worth it.
Hi Steve, Great post! There is nothing I would like better than to get rid of the expensive local newspaper print ads that get no response. The catch 22 is, in a tiny mountain town, I get people telling me they miss the creative ads I run with my kids, dogs, etc...maybe just image ads is the way to go? Any thoughts you have on this idea would be appreciated! Lisa
Whoa, Steve, give up sex for the internet - that's just weird... I agree about print advertising being dead, so why do sellers still hold on to that expectation?
I agree totally with your analysis and conclusions: anyone spending money on print is likely wasting that money.
However, with respect, I wonder what kind of tracking system told you you had almost 700,000 page views on Realtor.com for your listings in November--especially when realtor.com only has 7 million total page views each month?
If you got 10% of all their page views, what about the other million agents and brokers? Could there be a misprint here?
Yup,, agree, was just trying to tell a group of directors, committee chairs about this and they thought I was talking Greek...oh my are they in trouble.
We have not advertised in the newspaper for at least 2-3 years. We had a client that insisted on newspaper ads last year so we called Dallas Morning News out to discuss ads the sales representation told us "they ads don't work." The large agency place ads to keep their agents and sellers happy. We reported that to our client, he tried it anyways and it did not work.
Steve this is so true, I actually use a lot of these statistics in my listing presentations. If 90% of buyers are looking through the internet, it behooves us to be in there faces!
Thanks for the post.
-Brendan
i tried every form of advertising and nothing works (for the money) compared to internet advertising and email marketing consistently over time
Hi Steve - Came across your article serendipitously and could agree more. We're seeing more and more agents come to understand the value of internet and web prospecting and lead development b/c home buyers/sellers are using Google, blogs, and other real estate sites as their window to the real esate market. For agents looking for some specifics on how to begin, I just wrote an article this morning on Internet Marketing, basic principles, and offered some suggested services to help with effective implementation.
Hope all is well - we should catch up on the phone from our conversations from last Fall!
-Scott Sambucci, Altos Research
Ah you beat us to it. Was just starting it in draft. It's all twitter's fault :)
Excellent points and bad results for print companies. I do believe, howver, that ompanies such as Homes and Land will continue to stick around with their platform designed for both print and the web.
Newspaper ads are also on their way out as Open house websites are allowing people to get detailed information by the minute.
Great post. Looking forward to reading more of your blog.
That was a very informative and interesting post. Thank you for sharing that with all of us! I really enjoyed reading it. Have a great day and Happy Holidays!
Very Informative. I just spent a bunch of money updating my website because I know that the Internet is the way to go! Thanks for the info.
Good stuff Steve! I joined my mother three years ago in the real estate business. I know, what a great time to make a move from a stable corporate job to the unstable world of self employment...My timing was impeccable! (ha ha).
I was a national sales and marketing manager before and to me the numbers are everything. After joining up with mom, I realized she was spending an obscene amount of cash on print advertising and we had no tracking in place to see if it was even working. The first thing I implemented was a basic tracking system, (you know the one I am talking about) to ask each person we came across at an open house or over the phone where they found us. In that first year, there were only three calls that I could trace to our print campaigns! Over $100,000 in print for the year and we tracked 3 phone calls from it!!!!!!!! Did people see our brand? Yes. Did all of our friends love the ads? Oh yeah. Did it make us any money? Unfortunately not!
Needless to say, we do not spend money on print unless it is extremely targeted. When the AT&T golf touney comes to town in February, we have a large presence in the local real estate suppliment, usually a 2 page spread. Same thing when the Concour de Elegance comes to Pebble Beach. These weekends have proven to be great for exposing our clients properties and ourselves to the large group of people that have come for the week. Oh, and the phones don't usually ring while they are here partying and having a good time...We see the phone ring after they have gone home and decide they would like to have a second home here on the beautiful Monterey Peninsula.
I have now moved 95% of our marketing budget (which has been cut by 60% from when I started) to the internet. I am happy to report that we are having a better year this year than we have had in the past 2!
Don't be afraid to make the leap people!
Hi Steve,
Print media is a dinosaur - it will be extinct soon. There is a reason why the Tribune had to file papers.
This is also the reason why I do AR. It doesn't get "recycled". It is the most effective way to build "equity" in your business.
This is really funny, "would rather go without sex for two weeks than give up Internet access for the same amount of time"
Great study results. Glad you noted Harris Interactive... :) Actually good points to bring out to sellers who are stuck in Traditional Mode. Thanks!
Well, Steve. I don't know about the sex part, but I really did miss my laptop when I had to ship it off for repairs. When it came back in the mail, it was like greeting a treasured friend.
AMEN!!! you can take my newspaper, you can take my TV... but don't mess with my internet!! I couldn't agree more. Every penny I have spent on my website and online advertising has come back to me 10 fold!!
Love the statistics! I agree with you all the way!
I couldn't agree more. I have not used print ad for over two years. Internet is the in thing. Have a great holiday!
I'm going totally online. That's the place I want to be and if I'm on the 1st page of Google-I'm everywhere! Thanks God for the webdesigner-husband:) Doesn't cost me a dime:) Would have cost me around 5K.
Those home books are getting thinner every week, some are going under and some are consolidating. it is on ly a matter of time before they are gone.
And in our Michigan news this week is "Detroit Free Press Goes Part Time."
Yes, The Detroit Free Press is cutting back. Way Back. They will no longer have a daily home delivery. Instead they will only be delivering three days a week, on those days that traditionally carry the most advertising.
In the words of Robert Zimmerman, "The Times They Are A Changin'".
And not only the Times. The Tribune and the Free Press are changing too. The printed word has had a great run. Johannes Gutenberg had a great idea way back in 1440. The Gutenberg printing press was developed from the technology of the screw-type wine presses of the Rhine Valley.
It was there in 1440 that Johannes Gutenberg created his printing press, a hand press, in which ink was rolled over the raised surfaces of moveable hand-set block letters held within a wooden form and the form was then pressed against a sheet of paper. Many tears later newspapers were mass produced using technologies that evolved from Gutenberg's rather crude press.
For many years, the newspapers were a wonderful medium for advertising items for sale, including real estate. As real estate agents we promised our clients lots of newspaper advertising. We sold the newspaper as a wonderful and effective way to sell homes. We knew it to be true and we made sure everyone else knew it. And then it happened. The world as we knew it began to change. Al Gore invented the internet and we were off and running with a brand new way to sell homes. The only problem is that we did such a good job of selling the newspaper as a great home selling medium that our clients still expect a lot of newspaper advertising, especially those that are past the age of acne.
In just two short years our own Grand Rapids Press has gone from two rather robust news paper sections to a rather anemic and thin single section, even though there are as many or more homes on the market now as there were then. Admittedly, some of this is due to the economy of tough times but mostly it is because most of us realize that the web is where the buyers are and we must go to them. For some, the internet and everything associated with it can be overwhelming. It can seem that there is so much to learn and so much to do if we are to take advantage of its power. For those, and me, we need to look at it like eating an elephant.
All at once, eating an elephant is daunting but one steak at a time is not so bad. We can all improve our skills, each at our own speed. The key is to simply take that first step. Just do it. One step (steak) at a time.
And, for those of you who were wondering. Robert Zimmerman is the real name of Bob Dylan.
Yes, I have been spending way too much money on print ads that bring no return, Internet is the way of the future.
Do you think farming print materials are worth the effort?
Couldn't agree more about print becoming a thing of the past. I just read somewhere else that the predictions is that in 10 yrs there will be no more print and it's all going to be digital! ~Rita
I've been curious about this in rural areas. Most companies here still do quite a bit of newspaper ads and I was shocked to find out how expensive it was for one week- over $100 for the smallest possible ad. I didn't do it.
Many realtors here don't even have a web presnce and if they do, it's pretty lame. That's one reason I picked the company I work with now- they are ahead of the curve.
Many young people here don't spend much time online either. I feel like it's at a crossroads and I've decided to work on my marketing plan as if the internet was the main source and a tiny bit of print- our monthly guide for tourists for example.
Thanks for the stats!
I gave up print two years ago and the magazine reps were telling everyone how I would be out of business by the end of the year. The last time I ran a print ad the mag had 116 pages now this past issue was 22 and I'm still here.
On this Friday before Christmas, it seems relevant to liken this print/Internet to the times of Charles Dickens. In that day, newspapers were the only source of news, although--even then--they were news to wrap paid advertising in.
And so it is today with so many "invaluable" websites and blogs: everyone is still trying the same thing: give important data then sell paid advertising upon it.
Google, the "free" search engine, executed this strategy brilliantly: they compiled a huge data base so they could sell folks access to commonly searched terms and became billionaires. Yahoo's Founder was unseated because Yahoo was left behind by Google; MSN has plowed 1.6 Biillion into their Live Search trying to catch up. Now, wrapping content in paid ads is in its gazillionth iteration with sites like Trulia and Zillow and all the rest. All have the same pitch: you, the advertiser, must be on our site with your advertising. I'll tell you, it's getting as bad as newspaper ads!
And that is the beauty of organic search: it is a totally PASSIVE method of bringing customers to you. Unlike those advertisers bombarding the public with media messages every waking moment, the organic search clients sit politely out of sight, witing until some searcher actually ASKS for what they sell! Then--BOOM--the search engine presents their site nice as pie for consideration. The client comes to you.
That is the promise and success of the internet. As this year gathers steam, we will no doubt see dozens of new portals that everyone absolutely MUST advertise on. Realtor.com will continue to claim to be the most polular place consumers look for a home when Google has 125 times the Internet shoppers for homes that realtor.com does. Misrepresentations will continue to fly, new hype to flow.
So remember, this (active rain) is FREE, valuable, and as yet is less of an advertising medium than a social one. Hooray. Let's hope it stays that way.
Finally, remember that managing your organic search is just as important as keeping your license to sell real estate up to date: it's where the client comes to you instead of being bombed with ad messages they ignore on all those portals.
The King is dead. Long live the King!
Steve,
Those stats from NAR speak for themselves. Just about all of my mortgage-related contacts today come directly from the Internet.
We canned any print advertisings for specific listings 5 years ago, with one exception of a homes for sale book published by Keller Williams. This is a pretty good statement to read. We typically have about 50-60 listings at any given time. The area that we work gets us in the very front section of the book. Thus, we dominate the first 15 pages of the book with so many listings. In 5 years, I am still waiting for the first call. About 2 years ago, we changed the ad to push our website more than the phone number. Obviously there is no way to track that.....but not one phone call in 5 years with about 600 ads a year.....or 3000 ads. One would have to be brain dead not to figure that one out.
One of my current listings is the editor of Austin's main newspaper. I even convinced her that the newspaper was a branding medium rather than means to sell a particular home. We have put in the paper for free a 1/4 page ad for one home....now running 2 weeks straight. No calls.
Duh.....