More Proof That Print Advertising Does Not Sell Houses
June 18th, 2008 Categories: Selling a Home
Several years ago I used to get lots of questions from clients regarding what newspapers and other print media I used to advertise homes for sale. There was a time when I used Homes & Land Magazine as well as the Raleigh News and Observer as a big part of advertising homes that I listed for sale here in the Raleigh area. When I came to Keller Williams Realty about three years ago, as part of the business culture here, I was encouraged to track every single detail of my business and measure results over time. When I did this with print media advertising, I was amazed by the results.
At that time I was spending about 40% of my advertising budget on the newspaper and homes magazines. I measured results over a six month period and discovered to my dismay that I could not attribute one single sale to print media advertising. I immediately changed a few things.
From day one in this business I had used the Internet to promote my listings and generate leads for my seller clients. The detailed analysis and tracking that the Keller Williams business model encouraged me to follow revealed that almost every single sale could be tied to a listing’s exposure on the Internet in some way. Many times the connection was very direct and clear.
Two years ago I went cold turkey and stopped using print media advertising altogether. My sales have increased year over year and my days on market continue to beat the average for the Raleigh real estate market.
Online advertising works. Print advertising simply does not.
The National Association of Realtors (NAR) data confirms my experience. According to exhaustive studies by NAR, 79% of home buyers used the Internet as a key information source during their home search. And 24% of all home buyers first saw the home they purchased on the Internet. The difference between the 79% and 24% were buyers who first found out about the home they purchased from their agent, who of course used the powerful MLS online database to research homes to show their clients.
In the same study, less than 5% of buyers first saw the home they purchased in a print newspaper advertisement.
The NAR study was done in 2006. I wonder how these numbers have changed in the past 18 months?
The number 3 newspaper publisher in the country, McClatchy, just announced it is cutting 1,400 jobs, 10% of its work force, due to dramatic reductions in advertising revenue. The local Raleigh newspaper, the News and Observer, is owned by McClatchy. The News and Observer will eliminate 70 jobs, about 7% of its workforce.
My sincere sympathy to anyone at the News and Observer who is caught up in this, and ends up losing a job as a result. As the Internet continues to mature and develop, this shift from print to online advertising will likely continue. It would be wise to be prepared for more turnover.
I learned my lesson several years ago. Online advertising sells houses. It sells houses here in Raleigh and it sells houses nationwide. Worldwide for that matter. My clients expect and deserve my very best. I will continue to invest in online advertising of listings and am very excited about some brand new, very consumer focused tools to accomplish this that are just around the corner. Stay tuned for more details!
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