Williamsburg, VA (PRWEB) October 18, 2012
Amid signs that the real estate industry is springing back to life, Borrell Associates is reporting that the industry’s advertising expenditures are showing a mild improvement as well. But it’s only better-bad news: Real estate advertising is still likely to be down by 14.6% this year, compared with the company’s earlier estimate of a 16.4% decline. Both broadcast and print continue to see ad revenue fall off a cliff, while spending on out-of-home and online advertising continue to increase.
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Overall, real estate ad spending will total $24.3 billion this year, compared with $28.3 billion in 2011. The decrease is caused in part by the housing industry’s decline and in part by a 10-year trend in which agents have been diverting money from more-expensive traditional media channels into lower-priced online channels. The findings are detailed in Borrell’s report, “2012 Real Estate Advertising Outlook: The Long Road Home.”
Borrell’s recent sampling of agents and brokers in three markets showed that 45% said they didn’t plan to buy any advertising from traditional media channels, while 7% said they planned to decrease their spending on these channels. The biggest planned increase, according to survey participants, was social media, email marketing and search engine optimization (SEO). Nearly one-third said they were increasing spending on these areas.
Mild improvement in the housing industry this fall has caused some to declare that real estate sales are “back” after a devastating six years. The U.S. Department of Commerce reported that September housing starts were up 15% from August. In addition, housing permits, which indicate future building and sales, rose 11.6%. Last year, home builders began construction on 434,000 single-family homes, the worst year on record. This year, single-family starts will be up 21% from last year, then increase 26% and 30% in the next two years, according to the National Association of Homebuilders.
Borrell’s report forecasts that “planned purchases” – one of the key indicators that spurs real estate advertising expenditures – will be up for all five types of homes next year: existing homes, mobile homes, second homes and new construction.
For more information on Borrell’s report, visit http://www.borrellassociates.com.
Taken from: http://www.prweb.com/releases/2012/10/prweb10030652.htm