There’s a debate that is becoming more and more common through the industry: is real estate digital marketing or traditional marketing more effective? Furthermore, which form of marketing will generate a higher return on investment? The aim of this article is to identify key differences and outlines which marketing method can provide your agency with a higher ROI.
Firstly, let’s start by comparing the key differences between traditional forms of marketing and digital marketing at a high level:
Let’s now look a bit deeper into the differences and discuss what you need to know:
What is more cost effective?
Traditional forms of marketing, such as billboards, radio and print media can be very effective, but also incredibly expensive. It turns out it is much more expensive than digital marketing platforms such as social media, search engine optimization and email marketing in almost every case. Contrastingly, digital marketing is much more cost-effective than advertising via traditional media sources. Furthermore, larger agencies typically have a larger marketing budget, and may use radio and television much more than we do.
This means that smaller agencies need to have a very well-planned, well-executed digital marketing strategy to close the gap against larger agencies. With digital marketing, we can reach a wider and more targeted audience with a much lower budget. Digital marketing allows real estate agencies to reach targeted groups of people, with a targeted message and for a cost effective price. Lastly, if you think a print media ad on page 28 in your local paper is generating you lots of business, it’s not.
Which allows you to better measure results?
Now this is very important. Why would you invest in a marketing campaign if you can’t accurately measure the results? One of the key benefits from investing in real estate digital marketing is that you get in-depth data and analytics to go along with it. By having this data, we can measure the effectiveness of each campaign and return on investment. The data can tell you exactly how many local people saw and engaged with the campaign and their demographics, alongside how many leads you generated and your CPL (cost-per-lead). When we look at traditional marketing, we all know it is incredibly difficult to determine how many people saw and read our print ad or heard our radio ad. This outlines the key downside to traditional marketing and highlights the fact that it is not easily measured and sometimes can’t be measured at all.
With digital marketing, we can “slice and dice” the data in many ways to find the insights and information we are looking for. This includes data on peak days and times that people visited your website, and how many times someone was converted into a lead on your website (these are known as conversions, things like signing up for a monthly email update or requesting to book an inspection). Being able to collect data like this is amazing, and the insights and results collected can be used to very quickly alter or modify your marketing strategy. Certainly much more quickly than developing a new TV or radio ad.
To summarise, digital marketing allows you to market to specific target audiences, at a specific time, with a specific message. This is incredibly useful for real estate agencies and individual agents, as you can build relationships with clients and prospective clients. Furthermore, you increase brand awareness, authority and trust in the local market. However, the beauty of digital marketing lies in the data. No longer do you have to estimate your ROI from traditional sources of media. You now have access to in-depth, easy to understand data and insights that can quantify your digital marketing ROI.
How do we know this for sure? We’ve been dedicating a lot of time over the past year to strategize, develop and implement sophisticated digital marketing campaigns for our real estate clients. In the process, we have been achieving some fantastic results across the board, which you can see in our real estate digital marketing case studies.