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Are you holding your online marketing to a higher standard?

For years, real estate agents and brokerages have been notorious for spending marketing dollars on outlets that they cannot track in terms of the return on investment (ROI). Heck, I was in the same boat for the last five years while running the marketing department for a large regional broker in the San Francisco Bay Area.

We would look at where we needed to be (newspapers, magazines, billboards, etc.), divide up the budget and spend. Then we would wait. Was the phone going to ring more often? Were we going to see more walk in traffic? Were the unique visitors to our website going to increase? Not the most efficient way to spend and track a marketing budget.

Then a funny thing happened. Budgets started to shift from the difficult to track offline marketing efforts to the highly trackable online outlets. When this shift took place, expectations started to change too. Because agents and brokerages at the basic level could see how much traffic they were receiving from different sources, they started to become ROI experts.

I was no different. Now I had the power to go back to the online vendors I was using and tell them I wasn’t getting enough traffic to justify the cost. But at the same time, I was still using offline sources that I had no real way to track. I wasn’t going back to these sources asking them to justify our marketing spend or inquiring how much impact their medium was having on our business. I was being more critical of sources that I could track compared to the ones I couldn’t. Not very smart marketing tactics if you ask me.

Today I have a much different perspective and know I should’ve been equally, if not more, critical of my non-Internet sources because I was still spending more than 70% of my overall budget offline. This is something agents and brokerages really need to consider as offline marketing sources continue to become more expensive and they still have not found an effective solution to track. Maybe if everyone shifted 100% of their marketing budgets online, we wouldn’t even be having this discussion. I can dream can’t I?

Derek Overbey
Roost.com
Sr. Director of Partnership Strategy
Twitter - @doverbey
derek.overbey@roost.com

Posted by Derek Overbey on 09/04/2008 02:51 PM

Comments (10)

Measuring in the Online Marketing Channel

internet marketing, online marketing, roi, real estate, return on investment, agents, brokers

Post is included in group: Diary of a Realtor
Post is included in group: Club Chaos

10 Comments on Are you holding your online marketing to a higher standard?

I would love to go all online but I think there will always be offline marketing. Even billboards I think will always be somewhere.

09/04/2008 02:57 PM

by Eau Claire Wisconsin Real Estate Agent & e-PRO® Realtor® Shane O'Gorman (Eau Claire Realty, Inc.)

Yeah, you can dream! Being the Internet Sales Representative for William Ryan Homes' Milwaukee Division I fully understand where you're coming from. I think the reservation for most businesses to go strictly online with advertising is that they may be missing something.

09/04/2008 03:10 PM

by Paul Ochtrup (William Ryan Homes) (William Ryan Homes of Wisconsin, Inc.)

I think things are obviously shifting more and more to online. I've been getting a lot more leads lately via my online investments than I ever did with print material and other avenues..... although I'll still continue with a couple print ads that proved to work.

09/04/2008 03:17 PM

by Tyson Robinson (Oak Tree Realty Group - REO/Bank Owned Specialist)

In a resort market we relly heavily on the internet. Or offline advertising in different areas where the buyers actually live. But 90% of it is online.

09/04/2008 03:24 PM

by Ryan Haley (Ryan@RyanHaley.com Ocean City MD Real Estate Sales)

Thanks for your expertise. I think on line is the way to go although it takes a full commitment and high search engine placement. As we all know there is massive competition on the Internet and being a great company where no one will find you isn't much good either. That's why the race to top of SEO. I believe you have to adjust but a little cautious of putting your eggs all in one basket. there are definite marketing tools that need to diminish or even replace. Bottom line..it takes marketing you need to experiment to see what works best. It is nice that there are many many options.

09/04/2008 03:27 PM

by June J. Lewis,Realtor New CastlePa Lawrence Co. (Northwood Realty Services)

Almost all First Time Buyers are looking online before ever hitting the streets. Most of my referrals online are first time buyers. You need to look at the property and see who it is going to appeal too... A split bedroom ranch in an area of older homes might be perfect for the 60 year old couple downsizing... That I would advertise in the papers.

09/04/2008 04:01 PM

by Mark Baughman (Re/Max Traditions)

Well, your dream is about 99% true for me. I only do print ad's with Open Houses. (and I do about 5 a year) so I'm pretty much done with it. No ROI since 2004. Now I'm considering getting rid of my template web sites, my blogs and my PPC, search site is where all my business is coming from 42% of all my closings this year.

How are you Derek, did you have a good B-Day?

09/04/2008 04:06 PM

by Missy Caulk-Ann Arbor- Realtor(R)- Ann Arbor Real Estate (Keller Williams-Ann Arbor)

Wait a mintue, there are standards?! just kidding. I am still trying to balance the online vs offline advertising. A lot of people still do not use the internet, but consider your target customer demographic and the trends. Additonally, strapped for advertising dollars offline sources seem to be raising their rates! Yet I still bargain shop online marketing and really only spend 30% of my budget there, but it is growing.

09/04/2008 04:16 PM

by Dominion Mortgage Inc