May 15, 2020
Well, my last contribution went heavy on the heartfelt, so this one will stick to business—with my business being marketing, predominately in the real estate space.
New media — anything you view on a screen—is priced like cars and diamonds, no one really knows the true costs or value. Priced based on what the market will bear, big tech monopolies are in control. Conversely, Old School media— print, out of home, direct mail —carry costs that are more transparent and fixed. This actually creates opportunities in digital and also makes it tough for Old School to adjust during changing economic circumstances.
With many businesses stopping their advertising (restaurant, services, entertainment etc.) there’s currently a glut of available media inventory. An example: TV (terrestrial and digital) are now offering incredible deals; a short-term opportunity ending as “stay-at-home” ends and we approach the election. And, because TV can’t show a “blank” slot, they’re often “throwing in” your commercial in places; a double win.
In digital advertising in the real estate space, inventory is also shifting dramatically. Here, costs have adjusted downward 30%±, although costs per click have held steady. But, the rate of click-through (to your website or landing page) has dropped as much as 25%. Results? Cost per lead is trending about 15% higher. Confusing? I know! Translation: because media is cheaper, your brand is way more visible with less investment, but your ads must work harder (more direct, creative, beneficial) to get the same number of qualified leads. And, to complicate things, once that digital lead gets to your sales team, the conversion rates (a sale made) are already down by 20%+.
Some potential good news: with most tours by appointment only, we’re seeing sales teams treat digital leads much more reverentially. Salespersons accustomed to serving the walk-in customer are adjusting; learning how to love, honor and cherish digital leads like never before. That’s a real opportunity to finally put 21st Century analytical nurturing in place — so those precious leads are never wasted. This big data nurturing can be confounding at start up, and blurs the line between marketing and sales, so it’s often the last tool implemented (if at all). But I believe it will emerge as marketing’s big winner, and those companies who commit will be well ahead of the pack.
Hope this is useful!
The Sieb Organization, Principal
Vice Chair, Urban Revitalization Council, Gold
Leader Emeritus, WLI AZ