whole new internet market
TRANSCRIPT
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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:
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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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
Source: amrinteractive Online Survey June 2005
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
The internet is rapidly becoming the dominant advertising mediumfor the real estate industry
Three ways in which agents can leverage the internet toimprove the profitability 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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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
The internet is rapidly becoming the dominant advertising mediumfor the real estate industry
Three ways in which agents can leverage the internet toimprove the profitability 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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Buyers (and therefore many sellers) are using the internet to researchthe market before contacting agents
Source: amrinteractive Online Survey June 2005
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
The internet is rapidly becoming the dominant advertising mediumfor the real estate industry
Three ways in which agents can leverage the internet toimprove the profitability 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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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
The internet is rapidly becoming the dominant advertising mediumfor the real estate industry
Three ways in which agents can leverage the internet toimprove the profitability 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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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
The internet is rapidly becoming the dominant advertising mediumfor the real estate industry
There are three ways in which agents can leverage the internet toimprove the profitability of their business
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 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
The internet is rapidly becoming the dominant advertising mediumfor the real estate industry
There are three ways in which agents can leverage the internet toimprove the profitability of their business
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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It Is A Whole New Market Are You Connecting With It?
Thank You For Your
Participation.