Escaping the real estate ad trap: Are property developers paying too much?
In the ever-evolving landscape of the property industry, one thing has remained constant: the hefty price tag attached to advertising on real estate listing websites. For years, property developers have funnelled substantial budgets into these platforms, believing them to be the most effective way to reach buyers.
However, as digital marketing evolves, it’s increasingly clear that these outdated platforms are both overpriced, underperforming, and not as effective for advertising off-the-plan developments.
Let’s face it: the cost of advertising on real estate aggregators has spiralled out of control. A six-month advertising campaign can easily run into tens of thousands of dollars per month, with developers and real estate businesses often seeing little return. Worse still, real estate aggregators offer minimal leads and conversion data. It’s a broken system, and we must ask, is this truly the best way to reach today’s property buyers? Are developers and real estate businesses being shortchanged?
There’s a better way, and the solution has been under our noses for years. Social media marketing, paid ads and lead generation all offer a more targeted, cost-effective solution to the price-gouging real estate aggregators that we all know, and for some reason, love. A knowledgeable digital marketing agency that understands the real estate industry offers tailored strategies aligned with the specific needs and behaviours of today’s property buyers, delivering real, measurable results.
The changing landscape of property advertising
The property industry has undergone a seismic shift in recent years. Buyers are no longer solely relying on traditional channels to find their future homes or investments. Instead, they’re turning to their everyday digital channels – social media platforms, search engines, and specialised online communities – where they can engage with content that speaks directly to their needs and aspirations. This shift has rendered traditional listing websites less effective, as they struggle to keep up with the changing buyer journey, yet still charge an arm and a leg for their so-called superior services.
I’m stating the obvious here, but the way we consume content has drastically changed, and with 78 per cent of Australians being active everyday users of social media, engaging with potential property buyers on
platforms they’re spending the most time on doesn’t just make sense, it makes dollars too. Property listings on Facebook and Instagram seamlessly integrate into users’ daily digital experiences, appearing alongside trusted content from friends, family, favourite brands and pages.
The recent shift towards off-the-plan purchasing has highlighted the inadequacies of traditional real estate websites even more, with listings looking almost identical, with similar-looking architects, material sets, design language and renders. This lack of differentiation makes it hard for buyers to connect with what could be their future home. But on social media, these properties are presented to us in a more dynamic and engaging context, surrounded by content that already resonates with the buyer’s lifestyle, preferences and aspirations, not an almost like-for-like development 5 kilometres down the road from the previous listing in the feed. This highly targeted approach to property advertising is not something the ‘big boys’ have managed to understand, let alone offer. If they could, just imagine how much they would charge.
The data-driven advantage
One of the most significant advantages of social media advertising is the wealth of data it provides. Unlike traditional listing websites, which offer limited insights into campaign performance, digital platforms allow us to track every aspect of a campaign, from click-through rates to lead conversions. This data-driven approach enables continuous optimisation of campaigns, ensuring that every advertising dollar spent is working as hard as possible to deliver results, and ultimately drive registrations of interest. Happy agent, happy developer.
Advanced targeting tools and AI-driven algorithms offer the ability to zero in on high-intent buyers with pinpoint accuracy. This means that instead of casting a wide net and hoping for the best, tailored content and messages are delivered to people who are most likely to be interested in your property. The result? Higher conversion rates and lower customer acquisition costs.
Many developer and development websites aren’t even optimised for mobile, despite the fact that 62.8 per cent of Australia’s online traffic is generated from mobile devices. This is another area where traditional property advertising falls short, making it all the more important to leverage digital marketing strategies that are designed for modern consumers.
A smarter, more cost-effective solution
A trusted, reputable digital marketing agency that truly understands the property landscape will drive more leads to your property’s online channels.
Melbourne-based real estate business, Jellis Craig, has received over 800 leads via digital marketing alone, resulting in an average cost of $50 per lead. Because digital marketing is able to track every step of the buyer’s journey, they receive detailed insights into which leads are most likely to convert into sales – something that traditional listing websites simply can’t offer.
Investing in an optimised, conversion-focused website and a targeted social media advertising campaign offers a more effective alternative to the high costs and low returns of traditional listing platforms. It’s a stark contrast to the hundreds of dollars spent per lead on traditional platforms, which offer little more than smoke and mirrors.
The risk-averse property industry hasn’t caught up to the changes in advertising and marketing yet, but the ones who work with a reputable digital marketing agency can expect to see between 70 to 100 genuine leads over a four-month period, with an average of $60 per lead. Good luck even trying to pull out a cost per lead from a real estate listing website below $400.
Simon Blangiardo is the director of Sod.