Petra Sprekos

Counting the real value of your advertising

Australia is a market of duopolies. In every sector there are 2 to 3 players which dominate the landscape and in our market it is no different. As a select few players have such a strong presence in the market, real estate agents are at the peril of the industry and face the rising costs from portals for online advertising.

So whilst advertising your properties online and offline is integral to get the best sale price for your vendor, agents need to scrutinize their advertising spend to drive more value from their existing activities.

Re-thinking your advertising budget

So how can you drive more value from your existing budget?

STEP 1; The first step is to evaluate what parameters you use to buy advertising. Whilst some sites have high numbers of unique visitors, they also have more noise surrounding them, making it difficult for your listing to get the exposure it should for the investment you make.

Rather than buy based on total visitors, look at how many visitors are searching for your local area, and how many enquiries agents are receiving per listing on the sites you are using. This information should be able to give you more of an insight into what you will get from your investment.

STEP 2; The second step is to review your cost per view/lead target. Rather than look at the overall number of leads generated for the properties you are advertising, break the cost down to understand how much you are paying per view or per enquiry. By understanding this information in more detail, you will be able to compare sites like for like to determine which site provides the lowest cost per view and lead.

Once you have this information you will then be able to determine which sites provide the best return on your spend and re-allocate funds on this basis. It is also important to realize that some sites may perform better in certain areas ie renting vs buying thus it is also important to look at the value derived for each part of your business.

STEP 3; The third step is to set targets to achieve. Now that you understand how much you are paying per lead or view, put some targets in place to reduce your average costs then work towards achieving them.

There is no doubt that you will need to use a mix of sites to achieve this, but the aim is to optimize the return you get from your spend. Apart from maximizing the value derived from advertising spend on third party sites, you need to consider how you can attract more buyers / renters to your own site.

With over 80% of Australians looking for property online, a little bit of investment in SEO may go a long way, and this is one area that should not be ignored in your online advertising strategy.

Although the economy is picking up and the market is strong, putting the fundamentals in place to run a lean business will ultimately provide your agency with greater returns. Understanding the value from your spend now, will ensure your business will be able to effectively deal with price rises in the future.

Be Sociable, Share!

Follow me on Twitter

2 Responses to “Counting the real value of your advertising”

  • Great first article Petra. Welcome to the Real Estate University team, it’s great to have you sharing some of your invaluable insights here.

    I’m a firm believer that agents should be focussing on outcomes & measuring their response to their campaigns more effectively, plus using the reporting to help their clients understand what’s happening behind the scenes.

  • John Gitlow says:

    Petra, in our agency the internet is so much more effective & I’ve found it much easier to measure response rates too.

    I’m finding that many sellers feel that the internet is the only way to go when marketing a property.

    Many feel that the cost of a newspaper ad for one day isn’t cost effective when compared with an internet ad. I’d be interested to know if other agents are getting the same feedback/response.

Leave a Reply