The real estate industry has been the number one spender in the online advertising marketplace, surpassing the automotive industry for the past few years in a row. The industry’s shift from traditional (offline) marketing to digital marketing is believed to reach new levels of disparity. Offline marketing mediums such as newspaper ads now only account for 16% of the overall market spend while online ads account for more than 55%. This trend is expected to continue with a steep increase as newer digital platforms such as social media, mobile, video, paid lead generation portals and high-speed internet connectivity all continue to develop, rapidly. So, what does it mean to both property buyers, mortgage houses and realtors?
If you’re a realtor, then you know that the real estate market is one of the most competitive industries out there in developing and already developed markets.
Indians seem to have become increasingly comfortable making high-value buying such as apartments and plots of land online – if the stats of the recently concluded Great Online Shopping Festival are anything to go by.
Here are some of the key stats from the GOSF which indicate that real estate seems to be well on its way to becoming a mainstream e-commerce commodity:
- 36 real estate companies including Tata Value Homes, Brigade Group, Purvankara Developers, Artha Property and Provident Housing were part of the event. This is as compared to just two developers being part of the previous edition in 2013 and none in the festival’s maiden edition in 2012.
- Real estate developer Puravankara sold over 125 homes within the first 12 hours of the shopping event and had 507 online bookings over the 3- day period.
- Tata Value Homes secured over 10,000 registrations for their homes across five projects in Bangalore, Chennai, Pune, Ahmedabad and Boisar near Mumbai.
Increased investments and opening up of new real estate portals like housing.com, commonfloors etc are the examples of changing trends. These portals are mainly driven by revenues through commissions and advertisements from brokers or developers and funding from private equity funds. With speculations around better infrastructure to facilitate online property business, experts expect it to grow at more than 30% in the coming years. These data show that digital marketing for real estate will be a very important growth driver.
Compared to 7 in 10 Indian buyers who rely on online research for making a purchase decision, the European and US Real Estate markets are more digitally advanced. US markets have seen 9 in 10 home buyers relying on the web as one of their primary research sources. According to a study conducted by The National Association of REALTORS and Google, not only 60% home buyers turned to the web as their first step but the number of real estate-related searches on Google.com has also been growing at 22% y-o-y. However, recent reports also indicate that emerging economies will play a decisive role in defining the future boom in Real Estate industry.
For realtors, digital marketing has been the most preferred way to better target your audience and grow your business. With an effective digital communication strategy, you’ll put yourself head and shoulders above your competition and taste success like never before.
One thing that has still not changed is the fact that home buying is a family decision and not an individual’s impulse decision. Most home buyers carry out a lot of research and consult family and friends before taking the big decision of buying a house. This means, it’s a very social process and engaging with customers moving out of comfort zone could facilitate him/her closing the deal.