whole new internet market

7/29/2019 Whole New Internet market

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Online Marketing

How Agents Can Leverage the

Internet for Profitable Growth

Presentation


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Agenda

The internet is rapidly becoming the dominant advertising mediumfor the real estate industry

Three ways in which agents can leverage the internet to improve theprofitability of their business are:

Attract vendor leads through strategically farming the internet

Let vendors self manage during the sale process

Better work the internet to attract quality buyer leads

It is essential that an office or franchise group put in place qualitylead tracking and lead management processes


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Agenda

The internet is rapidly becoming the dominant advertisingmedium for the real estate industry

Three ways in which agents can leverage the internet to improve theprofitability of their business are:






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The internet has significant penetration in Australia with consumers

now migrating to broadband

0

10

20

30

40

50

60

70

80

90

100

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Source: Merrill Lynch Actuals FY02-04, Estimates FY05-14

TOTAL INTERNET PENETRATION AND BROADBAND MIGRATION

Total Usage

Broadband Penetration

Percent


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Key uses of the internet are information, communication and

transacting

Source: StarcomIP and ninemsn Survey, June 2005

USES OF THE INTERNET

0

10

20

30

40

50

60

70

80

90

100

New

s

Communicate

Weathe

r

GovernmentIn

fo

Movie

Informatio

n

Holiday

s

PlanSocial

Activities

SportsScore

s

Employment

Finance

s

SearchforHom

e

Researc

h

Product

s

TVGuid

e

PlayGame

s


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Surveys indicate that for internet users, the most important source in

property searching is the internet

Q15.1. When looking for property or companies that offer real estate to rent, buy, sell or share, which ofthese sources do you use to search?

Source: amrinteractive Online Survey June 2005

FOR INTERNET USERS - MOST IMPORTANT SOURCE IN PROPERTY SEARCH

63%

15%

9%

7%

4%

2%

1%

Internet Si tes

Newspaper Classifieds

Real estate agent/s

Search Engines

Newspaper Articles

Other

Paper D irectories


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Readership of Australian real estate sites continues to grow quickly

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Jul-0

0

Sep-00

Nov-00

Jan-01

Mar

-01

May

-01

Jul-0

1

Sep-01

Nov-01

Jan-02

Mar

-02

May

-02

Jul-0

2

Sep-02

Nov-02

Jan-03

Mar

-03

May

-03

Jul-0

3

Sep-03

Nov-03

Jan-04

Mar

-04

May

-04

Jul-0

4

Sep-04

Nov-04

Jan-05

Mar

-05

May

-05

Jul-0

5

Source: Nielsen//NetRatings (formerly Red Sheriff) Unique Browsers

AUSTRALIAN READERSHIP OF REAL ESTATE SITES


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This is in contrast to the declining circulation of major real estatecarrying metro newspapers

200000

250000

300000

350000

400000

450000

Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05

CIRCULATION OF MAJOR REAL ESTATE CARRYING METROPOLITAN NEWSPAPERS

Source: Australian Bureau of Circulations

WestAustralian

SMH

Courier Mail

Age

Advertiser


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The online Australian audience is very attractive for the real estateindustry

Source: Nielsen//NetRatings (formerly Red Sheriff) July 2005

DEMOGRAPHICS OF AUSTRALIAN ONLINE REAL ESTATE SITE USERS

53

47

Female

Male

21

22

27

5

11

14


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60% of real estate site users are over 35 year old

Source: Nielsen//NetRatings (formerly Red Sheriff) July 2005

DEMOGRAPHICS OF AUSTRALIAN ONLINE REAL ESTATE SITE USERS

27

35

20

5

5

9


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75% of online users believed that researching property online improvedthe quality of interaction with the agent

31%

44%

11%

3%11%

Jun 2005

Not sure/not applicable

Strongly disagree

Disagree

Agree

Strongly agree

Q17. How strongly do you agree with this statement: Researching property online improves my interactionwith agents during the buying process


RESEARCHING PROPERTY ONLINE AND IMPROVEMENT OF AGENT INTERACTION


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The internet has helped open Australian real estate to the world

TOTAL READERSHIP OF AUSTRALIAN REAL ESTATE SITES

2.26m

0.47m 2.73m

Australian International Total

Top Countries USA UK NZ Singapore Canada

Source: Nielsen//NetRatings (formerly Red Sheriff) Unique Browsers


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Not only is readership increasing, the amount viewed per reader isincreasing

0

20

40

60

80

Jul-0

0

Sep-00

Nov-00

Jan-01

Mar

-01

May

-01

Jul-0

1

Sep-01

Nov-01

Jan-02

Mar

-02

May

-02

Jul-0

2

Sep-02

Nov-02

Jan-03

Mar

-03

May

-03

Jul-0

3

Sep-03

Nov-03

Jan-04

Mar

-04

May

-04

Jul-0

4

Sep-04

Nov-04

Jan-05

Mar

-05

May

-05

Jul-0

5

Source: Nielsen//NetRatings (formerly Red Sheriff) Page Impressions (REA + Domain) /Unique Browsers (REA &Domain)

AVERAGE PAGE IMPRESSIONS / UNIQUE VISITOR (REA & DOMAIN)


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For many agents, the internet is now one of the prime sources of leads

SOURCES OF LAST 100 BUYERS FOR A VICTORIAN AGENT

34

27

1714

4 4

0

5

10

15

20

25

30

35

40

Referral Internet Local Paper Signboard W indow

Display

Metro Paper

Source: Detailed tracking of leads by one South-Eastern Suburb Victorian agent

EXAMPLE


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Agenda


Three ways in which agents can leverage the internet toimprove the profitability of their business are:






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The internet has the potential to deliver significant profitabilityenhancements for real estate agents

Reduce the cost ofacquiring buyer leads

Reduce the time propertyis on the market

Aggressively manage onlineadvertisements to quicklygenerate low cost buyerleads

Online buyer leads

Reduce the cost / time in

servicing a vendor

Increase time available forsigning new vendors /managing buyers

Leverage the internet to

allow a vendor to selfmanage minor interactionswith agent

Online vendor management

Reduce cost of vendor

lead acquisition

Increase number oflistings

Aggressively farm the

internet for vendorsespecially early in theirdecision cycle

Online vendor leads

Value Creation PotentialApproachArea

INTERNET DRIVEN VALUE FOR REAL ESTATE AGENTS AND FRANCHISES


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Agenda








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Buyers (and therefore many sellers) are using the internet to researchthe market before contacting agents


50%

15%

8%3%

14%10%

3 weeks or less One month About 6 weeks 2 to 3 months More than 3 months Did not use internet

when bought home

Q16. When you bought a property, how long did you research on the internet before you contacted an agent?

LENGTH OF INTERNET SEARCH BEFORE CONTACTING AN AGENT - BOUGHT IN LAST 12 MTHS

40%


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There is a clear set of steps an office or franchise group can take togenerate vendor leads

1. Develop quality online ads with the right offer

An offer that a vendor will action not just a branding exercise

Not just banners but all advertising formats

2. Place quality ads on the right sites

Sites where potential vendors may be visiting

Real estate portal sites

Google and other search engines

Locally relevant sites

3. Drive clicks from ads to a qualification page

Dont waste advertising dollars on driving vendor leads to information pages

Use the internet to capture leads and to help qualify the lead

USING THE INTERNET TO SOURCE VENDOR LEADS


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Most online real estate advertising does not have a clear call to actionand are likely to be ineffective

EXAMPLES OF ONLINE BRANDING EXECUTIONS

What is the

compelling

reason for aseller toclick or call?


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To attract vendors, the proposition needs to be clear and compelling

EXAMPLE ADVERTISING MESSAGES TO ATTRACT VENDORS

Morecompellingreason

Free

Answers aquestion avendorprobably has

Easy to do just click (notphone)


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There are multiple online advertising opportunities on websites

ADVERTISING OPPORTUNITIES BEYOND BANNERS

Banners

Tickers

Text Links

Advertorials

Tower Ads


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Portal sites are highly trafficked and provide access to a pre-qualifiedaudience

EXAMPLE ADVERTISING ON PORTAL SITES

Visitors to real estate portal sites

are interested in real estate(therefore qualified)

Most buyers are also sellers

Most people move within ~10km

of where they currently live

Many people monitor the marketbefore making the decision tomove a key area of research isprice

Prime audience to offer a FREEONLINE VALUATION SERVICE


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Search engines are a great source of traffic to your site especially forvendors

EXAMPLE ADVERTISING ON GOOGLE

No agentsadvertisinghere

Cost perclickbetween50c and $2

(dependingon searchterms)


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Local sites and sites known to be visited by locals are prime advertisingareas especially for a compelling free valuation offer

EXAMPLES OF LOCAL SITES IN RICHMOND


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Some companies are making it easy for a vendor to register interestand thus become a lead

HOUSEVALUES.COM UNITED STATES EXAMPLE


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Agenda








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Once a listing is signed, any time not spent selling the listing or signinga new listing is non-revenue time

1. Reduce low-value vendor interaction through automated 3rd party products

2. Allow vendors to self-service through secure logins

Information on advertising campaigns online and offline

Update on open for inspections

Message board to discuss sale process

Able to review email comments about the sale

USING THE INTERNET TO MANAGE VENDORS


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The internet can automate manual time consuming tasks

EXAMPLE PROPERTY LIVE WEEKLY EMAIL

Automatically send a online

advertising notification to vendor Automatically send a weekly

online property performancereport to vendor

Branded with agents branding

Reduce Time Spent onAnswering Minor VendorQuestions


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A secure vendor section can allow your vendors to self service for basicsale progress information

EXAMPLE VENDOR MANAGEMENT SECTION

Should contain

Online views

from all sites

Copies of emailsreceived

Message systembetween agent &vendor

Details of othermarketingactivities

Comments fromOFIs


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Agenda








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The internet is a low cost tool to source buyer leads however it needsto be actively managed

1. Advertise your properties where people are looking

Buyers primarily use portal sites

Agent sites are mostly used as support for the complete marketing campaign

2. Ensure property ads are highest quality

Photos

Detailed / accurate information

Virtual tours

3. Make sure your property ads stand out from the others in the area

Larger ads

Ensure displayed first

Proactively send to interested buyers

USING THE INTERNET TO SOURCE BUYER LEADS


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Online ads must be comprehensive and compelling as buyers will makedecisions based on what they see and read

Multiple photos inside / outside / surroundinglocations

Floor plan

Compelling title

Comprehensive information

Address Beds / baths / parking etc

Virtual tour

Future

Video

Audio

KEY ELEMENTS OF A QUALITY ONLINE AD

Must look good

at the search

results page aswell as the

property detailspage


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Larger ads usually stand out more thus increasing the chances of beingclicked on

EXAMPLE OF VARIABLE AD SIZES AT SEARCH RESULTS PAGE LEVEL

Domain realestate.com.au


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Another way to stand out is to lock in top spot of searches

EXAMPLE OF GURANTEED TOP SPOTAT SEARCH RESULTS LEVEL


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Agenda


There are three ways in which agents can leverage the internet toimprove the profitability of their business




It is essential that an office or franchise group put in placequality lead tracking and lead management processes


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Understanding where leads are coming from and how much you arepaying for leads is becoming more important

WHY TRACKING OF LEAD SOURCES IS IMPORTANT

Agents should understand theiroptions and use what worksIncrease in advertising opportunitieswithin each media

Agents should understand whichmedia deliver leads

Increase in number of media servicingthe industry

Need to understand which medium isworking best

Cost to advertise is increasing

Need to make sure that you stand outfrom the crowd and get cut through

Decrease in number of buyers

Advertising dollars now need to lastlonger

Time on market has increased

ImpactTrend

RESULT TRACKING THE SOURCE OF LEADS AND THE COSTPER LEAD IS CRITICAL


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However, most agents appear to not track the sources of leads

AGENTS TRACKING SOURCES OF LEADS

Source: realestate.com.au Telephone Survey, n=150

13%

87% Agent did not ask for where theadvertisement had been seen

Agent asked for where the

advertisement had been seen


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In the US, real estate groups are taking a business approach tomanaging leads

15,000 sales associates, 330 sales offices

All leads (print / online / phone etc) to a central lead management team

Ads in each media have a different telephone number

All leads are scrubbed by a central team

Qualified leads (ie ready to transact) are passed onto sales associates

Early stage leads (ie not ready to transact) are centrally managed untilqualified

Cost per lead per media channel centrally tracked and media spendredirected into those lead sources that deliver greatest volume at lowestprice

WEICHERT LEAD NETWORK


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Agenda


There are three ways in which agents can leverage the internet toimprove the profitability of their business






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It Is A Whole New Market Are You Connecting With It?

Thank You For Your

Participation.

whole new internet market

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