Real estate pros are using this time to connect to prospects and past clients online. Building brand awareness using social media ad platforms may be cost-effective and could pay off in the long run too, according to a new study from Evocalize, a provider of marketing technology solutions for the real estate industry.
Evocalize, a 2019 member of the National Association of REALTORS®’ Second Century Ventures tech accelerator Reach program, analyzed more than 160 million ad impressions and behaviors generated over 70,000 leads from listing ads on Facebook apps and services. The analysis covers a month-over-month comparison between February to March.
Researchers found a 29% drop in media costs from Facebook advertising. “This is due to the increased amount of supply (available ad impressions) generated from the massive amount of people working from home and surfing Facebook,” the study notes. For example, the amount of video views on Facebook Live has doubled in just a week.
Also, the study notes a decrease in overall advertiser demand. Brands are reducing their marketing expenditures or halting them completely during the pandemic. The drop in demand has resulted in a drop in media rates too, the study notes.
Engagement and click-through rates have dropped somewhat during this time, the study notes. Researchers say this could because in-market buyers and sellers may still be browsing and viewing the ads but have less intent and are, therefore, clicking through less frequently.
Still, “the significant decrease in media costs, with the fluctuation in engagement and conversion metrics, leads to a near ‘business as usual’ approach to lead generation,” the report concludes. “The 15% increase in [cost per lead] means that for every $150 the average real estate agent spends on lead ads, they used to get about eight leads and now they are getting about seven leads.”
The significant drop in media costs could create an opportunity to “start building new relationships with clients and prospects,” the study notes.