Adam Fine of Move.com presented this session this morning, giving a broad overview of the real estate market, the moving audience and how the web has really changed real estate marketing. But the key part of the presentation was when he talked about how AAN members can use this knowledge to gain a larger piece of the real estate ad pie.
Fun background facts:
* 49.4 million people move each year in the U.S.
* The demographic is a damn good one, for three big reasons. 1) It skews to a higher-than-average income. 2) Not only is there high income, but movers spend $crilla like crazy. Movers spend more money in the three-month move period on other goods related to the home or apartment than non-movers spend in 5 years. 3) People often move based on a life change, which puts them “at a point of brand reflection,” and more likely to switch their pesky brand allegiances (50 percent of people who move switch banks, for example).
* Ad dollars, as we all know, are migrating from print to web. In 2006, real estate ad dollars are up to 2 billion for online and down to 4 billion for newspapers. It’s only a matter of time ’till online is on top there.
* At least 80 percent of consumers use the web for real estate info, including much of the work traditionally done by brokers.
What does it mean for my paper?
Fine noted that real estate, despite the existence of large national players, is still an inherently local experience. This is where we can “win.” Every alt-weekly is the authoritative voice of its community. We need to work on using this editorial authority and using it to sell our real estate sections.
* Build out your real estate sections, especially online. Work with local firms (MLS services, individual brokers, etc.) to get their listings. You can even use brokers’ RSS feeds to build out (for those few brokers that may understand an RSS feed). Also, the basic real estate ad should really be free. Which brings me to the next point.
* Upsell online. Use all sorts of cool 2.0 tools and build a kick-ass real estate section. Alt-weeklies already have the leg up here on traditional real estate websites. We have the editorial content, the neighborhood guides, the annual manuals. The key is to figure out a way to merge all of this disparate info together and package what a real estate user will need. Maps, links to recent stories about the neighborhood, and, of course, photos and all the traditional real estate jazz are a start here. This seems like the real revenue opportunity; selling users/brokers the premium product.
* Sell to advertisers who want the moving audience. This is another area where there is huge potential for alt-weeklies. The main reason is simple: Movers turn to the local alt-weekly after they move, not just before, for listings, for info about their new locale. They don’t do that with traditional real estate sites. And, maybe my social network is the exception, but no one I know takes care of these peripheral services (phone, furniture, TV, banking, insurance, hardware/home improvement) before the move. It always happens after. We pride ourselves on being the definitive guides to our cities — this is yet another way to sell it.
Lastly, Fine suggested that AAN work on a master online real estate listings template for members to use, which would include all the bells and whistles. I think that could also be a national web portal, perhaps tied into the soon-to-come new-and-improved AltWeeklies.com, where we could attract big national advertising dollars and start to stem the tide of revenue loss from the AAN CAN network. Clearly there are some details to be hashed out, but I’d say it sounds like a worthwhile project.
I’m curious though, how many of your papers have an online real estate section that is anything more than simple listings? How many are even using photos? Maps? Other tools?