More Proof You Need to be Marketing Online
Yahoo! Inc., just released the results of a study they did on how the Internet influences home buyers and sellers and specifically how it influences consumers when it comes to selecting a real estate agent.
No great surprises in the results (which were tabulated from a survey of 500 participants)… Yahoo’s found that… Yes… the Internet plays a “pivotal role in the selection process and was central in helping consumers identify agents”.
The numbers are good brain fodder though.. here’s what Yahoo! found:
- Home buyers and sellers consider approximately two agents on average before making a final decision.
- The Internet impacts consumer trust. Forty percent of respondents credited a site in increasing their trust in the agent.
- 74 percent of people who accessed an agent Web site got there with the help of a search engine. [emphasis mine]
- The online research process is quick and intense: consumers spent an average of 12 hours online researching agents and 75 percent selected an agent within one week of starting their search.
- 45 percent of respondents used the Internet to learn about agents they didn’t know existed.
- 41 percent discovered special deals and promotions offered from an agent through the Internet.
Struck me that maintaining a blog might still be the best way for Realtors to deal with the discovery and introduction process.
But the biggest find reinforces what many of the online search sites are banking on (see Trulia Gets Beaucoup Bucks) – there is still a massive disconnect between Realtor’s advertising budgets and where consumers are looking for information. According to Yahoo! (bias noted) 77 percent of respondents searched the Internet for information during their research process compared to 34 percent for print.
And guess where Realtors are still spending the most of their money? A Borrell Associates report quoted by Yahoo says that newspapers continue to get biggest share of Realtor advertising dollars at 40 percent (though online is catching up – and now stands at 32 percent).
14 Comment(s)
2 Trackback(s)
- From Real Estate Marketing Stats from Yahoo! | Web 2.0 Real Estate Marketing | Jul 11, 2008
- From John Baeyens » links for 2008-09-21 | Oct 19, 2008
Phil Sexton | Jul 11, 2008 | Reply
Good Summary – I'm going to use the 'increased trust' point to try to connect with some agents that still aren't online. Plus, it seems much easier for them to rank higher for their name compared to 'Arizona Real Estate' for example. Of course this doesn't work for the realtor named George Bush – he's got an uphill battle regardless.
Ron Park | Jul 11, 2008 | Reply
Hahaha, an agent named George Bush. Funny, yet I feel sorry for someone who really has that name!
But wow, 40% is still put into print? I mean, I read in the numbers in a book that the only reason why agents use print is to appease the client. Man, shouldn't we get off the train that's going towards the brick wall? I can't really remember the last time I opened up a newspaper, even Yellow Pages!
And 74% of searchers finding their agent thru search engines. Profound, I must say.
-Ron
Tom Hall | Jul 12, 2008 | Reply
Hmm – makes we wonder if I shoulda become a programmer writing optimization code versus selling real estate – or maybe I should do both?
tigreroar | Jul 12, 2008 | Reply
It reminds me of the way indian hunters used to get buffaloes. . they get them to stampede towards a cliff and they all fall one by one to their deaths.
Realtors do what other Realtors do. . advertise in magazines, newspapers and they don't realize the big boys have left them years ago. The Internet is the number one place where I advertise my practice in Real Estate in Short Sales for Maryland.I would not think of spending a single dollar in the clasiffieds ads in the Washington Post.
Fernando Herboso
http://www.ReallyNiceHomes.com
Peter- Real Estate Marketing | Jul 13, 2008 | Reply
Thanks for a great post. I especially like the statistic about how 45% of people have learned about agents they didn't know existing. It's a proof that if you are not online, you are missing the boat, BIG TIME.
I said it before and I'll say it again, real estate agents and investors who do not embrace the internet for their real estate business will be left behind. The future is here and Web 2.0 is changing it all.
This is one of those posts that need to be printed out. Thanks,
Peter
Adam | Jul 14, 2008 | Reply
A couple of thoughts:
Online/search marketing is the place to be IF buyers/sellers know to look “realtor in New York.” But, what if part of one's marketing includes evangelizing the merits of a destination/community? (Think about trying to convince people to vacation in Key West instead of Hawaii.)
Yes, print absolutely makes no sense anymore. For us, it's expensive, doesn't deliver leads, and we can't measure it at all. The rule today – if you can't measure it, don't use it.
Derek Overbey | Jul 14, 2008 | Reply
Joel,
Having just crossed the bridge from the brokerage world to a real estate technology startup, I can tell you first hand that even with knock you over the head statistics like these, it is very hard to convince some real estate agents what is REALLY going on out there.
Even while working at Intero Real Estate in the heart of Silicon Valley, I had to pull teeth to convince agents that the newspaper was a dead medium. They would always tell me that in their town or neighborhood the newspaper was still used almost exclusively by the seller, which was probably true.
But agents have to be able to get beyond the objections and use the before mentioned information to convince their potential clients that online marketing really works. It is a process that will take time to get over this objection but if you are passionate and truly believe it yourself, it becomes a lot easier to point them in the right direction.
Derek Overbey
Sr. Director of Partnership Strategy
Roost.com
http://www.roost.com
http://blog.roost.com
Michael Zenga | Jul 14, 2008 | Reply
I sell modular homes and online marketing is the centerpiece of any marketing campaign I do for the houses I sell. I have gotten so much better return online
Michael Zenga
http://www.zncustombuilding.com
Tara Sybrant | Jul 15, 2008 | Reply
I would like to get my hands on this study, can you direct me to it?
Mark Bergman | Jul 16, 2008 | Reply
Great posting. I, too, would like to see the original Yahoo study. I've been sold on on-line marketing for several years. Convincing the older sellers that they don't need to see their home in print is the big disconnect for me. I consider myself a good salesman, but it's a leap. I do very limited print advertising in a second home marketplace. I consistently tell my sellers that I plan to be the first broker on the area to totally eliminate print advertising. After operating my current firm for 2+ years my branding is pretty solid. I support ($$) 2 monthly print pubs right now. It will be just one (maybe zero) in 2009 and none in 2010.
Jeremy | Jul 16, 2008 | Reply
“The Internet impacts consumer trust. Forty percent of respondents credited a site in increasing their trust in the agent.”
Have you seen some of the agent sites out there? I think that buyers are able to quickly credit and discredit others with a few clicks. Fortunately, the web is not an interactive billboard, but some agents are still treating it as such.
BTW — Adam your rule is one to live by…
dagny73 | Jul 17, 2008 | Reply
If you aren't online you are going to lose clients. It's as simple as that. The younger generation that's looking to buy is technologically savvy. If you aren't as experienced as they are, you'll lose them.
steamboat
DL | Jul 18, 2008 | Reply
Well, that could be because a lot of online services are either cheap or free. At Long & Foster Real Estate, agents are provided with their own website in addition to all the “free” advertising provided by http://www.longandfoster.com. Many companies, like Google and Zillow, provide free web site analysis tools, free neighborhood stats, free blogs, etc. So while I don’t disagree with you that too much is spent on print advertising, I don’t think it’s at the expense of online advertising.
Ana in San Antonio | Jul 19, 2008 | Reply
NO question its all about the net!