Real Estate: "How Digital Marketing is Revolutionising Real Estate."

Digital marketing for real estate

Roughly 47% of home buyers kickstart their house-hunting journey with an online search, and it's worth noting that nearly all buyers will turn to the web at some stage during their home-buying process. And, to be prepared, a whopping 80% of real estate agents are gearing up to use social media to boost their business, according to a survey by The Close. 

When we talk about the above stats, it becomes very obvious that in the present time, the question for realtors is not about “if”, but about “how soon” are they ready to gear up their online visibility. With digitalisation, it has become very convenient for users to just Google up what they need, or follow a few right hashtags to see the properties in their preferred location. Therefore, digital marketing has emerged as an essential component in the overall formula for success in the real estate industry for all realtors.

What are the major challenges for real estate agents when it comes to digital marketing?

major challenges for real estate agents

Different leads are at different stages of the customer journey

When it comes to digital marketing, not all of your leads are the same. For example, if we talk about a situation where a couple is looking to buy a home might visit a real estate website to browse listings and gather information. At the same time, a family relocating for work might be actively searching for a new house. Both are potential leads, but their needs differ. 

Prospective leads may find themselves at different stages of the customer journey, where some could be simply looking for the properties as part of their investment plan for the next year, while others could be looking for purchasing a property instantly. In this situation, it becomes crucial that real estate agents must cater to leads at different stages and offer relevant content and services.

How do you stand out when there are multiple realtors lurking for the same attention?

We have seen many examples when a realtor wants to attract a fixed set of audience, but are unable to make any lasting impact. Let’s consider a realtor who wants to attract first-time homebuyers interested in condominiums in a specific neighborhood. However, many other real estate professionals are also targeting the same demographic. It's essential to stand out and offer something unique to capture their interest.

The real estate market is highly competitive, and numerous agents and platforms are vying for the attention of potential leads. Attracting the right audience amidst this competition requires a well-targeted approach.

Now, if you work with a digital marketing agency like us(CodeDesign), here is what we will suggest to you. For this example, let’s consider you are trying to target young couples aged 25-35.

We'd recommend that you try advertising on platforms such as Facebook and Instagram. By targeting a specific audience, in your case, first-time homebuyers aged 25-35 in a particular city, you can cut through the noise and spend your budget only in talking to them. You could easily craft highly tailored advertisements that highlight your agency's expertise in serving this niche. 

Here is how you win confidence, you must share compelling success stories of young couples who have realized their dream of homeownership with your assistance. This personalized approach significantly enhances the likelihood of attracting potential leads who align with your ideal client profile.

On the other hand, there is also a great possibility that the audience may then go to Google to search for more listings in that area. Now, it’s obvious that multiple real estate agents have listings for homes in that area. In this case, you need a dedicated SEO campaign so that your listings show above when searched for. At the same time, your listings must include high-quality photos, detailed descriptions, and virtual tours to provide a comprehensive view of the property, increasing the chances of attracting serious buyers.

You also need to focus on Compliance and Regulations when marketing online

Compliance and Regulations when marketing online

For United States

Fair Housing Act (FHA): Realtors must comply with the FHA, which prohibits discrimination in housing based on factors such as race, color, religion, sex, disability, and familial status. In digital marketing, this means avoiding discriminatory language or targeting specific demographics in a way that could be seen as discriminatory. 

Truth in Advertising: The Federal Trade Commission (FTC) oversees truth in advertising laws. Realtors must ensure that their digital marketing, including property listings and descriptions, is accurate and not deceptive. Misleading information can lead to legal issues.

Licensing and Credentialing: Different states have various licensing and credentialing requirements for real estate professionals. Realtors should prominently display their licensing information in digital advertisements to comply with state regulations.

For European Union

General Data Protection Regulation (GDPR): GDPR sets strict rules for the collection and processing of personal data. Realtors in the EU need to obtain explicit consent when collecting data, provide clear privacy policies, and ensure that data is handled securely in their digital marketing efforts.

Environmental Labeling: In some EU countries, there are regulations concerning environmental labeling for properties. Realtors may need to include specific environmental information in digital listings and advertisements.

Unfair Commercial Practices Directive: This directive prohibits misleading advertising and aggressive marketing practices. Realtors should ensure their digital marketing is transparent and does not use deceptive tactics.

Now, we are not trying to say that you only follow them in the US or EU respectively, instead this should be the norm. And, being an EU based agency with additional offices in US and Singapore, we understand these regulations, and we always come up with the most authentic and transparent marketing strategies.

How to choose the right attribution model for real estate marketing?

right attribution model

With multiple touch points along the customer journey, understanding the true contribution of each channel can be difficult.

Identifying the precise source of a conversion can often be elusive, making the selection of an appropriate marketing attribution model all the more crucial. There are numerous attribution models available, each possessing unique strengths and limitations. Therefore, the vital task is to determine the attribution model that best aligns with the specific needs of your real estate business.

There are different attribution models to choose from, each with its strengths and weaknesses. So, the important thing is to pick the one that fits your real estate marketing goals.

By selecting the right attribution model for your online real estate marketing, you can get a clear understanding of how people are engaging with your content and ads. 

Here are the ones to choose from:

Last-Touch Attribution: This model attributes the entire conversion or sale to the last interaction the customer had with your marketing, such as clicking on an ad. It's simple and easy to implement. It's a good choice if your real estate sales process is relatively short and doesn't involve a complex customer journey.

First-Touch Attribution: In contrast to last-touch, first-touch attribution gives credit to the very first interaction with your marketing. This can be useful if you want to understand how customers initially discover your real estate listings.

Linear Attribution: Linear attribution spreads the credit for a conversion evenly across all touchpoints in the customer journey. It's suitable when you want to acknowledge that every interaction plays a role in the conversion process.

Time-Decay Attribution: This model gives more credit to touchpoints closer to the conversion and less to those at the beginning of the journey. It's helpful if your real estate customers tend to engage more heavily as they get closer to making a decision.

Position-Based Attribution: This model gives credit to both the first and last touchpoints while assigning some credit to the interactions in between. It's ideal for understanding how initial engagement and final interactions contribute to the conversion.

Strategies

Leverage CRM to build an Integrated Paid and Owned Strategy

Most real estate agents often manage multiple lead generation campaigns concurrently. These campaigns encompass various channels, including their website, blog content, online events, email marketing, social media platforms such as YouTube and TikTok, paid advertising, and even traditional methods like open houses.

Though having a grasp on lead generation is fantastic, managing a multichannel approach can become overwhelming if not done right. It's crucial to track where your leads are coming from and even if they are qualified and valuable for your business. This data helps your business assess their readiness to make a purchase, understand where they entered your sales process, identify what piqued their interest, and determine if they are indeed qualified leads.

A CRM helps you keep track of this data and help you make informed decisions. Your CRM keeps all your client information neatly organized in one place. You can see what type of homes they're interested in, when they last visited your website, and which properties they've been eyeing. With these insights, you can create content that speaks directly to your potential clients. If someone is on the hunt for their dream condo, you can showcase the latest condo listings on your website. If we talk about in the simplest of terms, then it's all about delivering what they want, where they want it.

Design a Service Blueprint in order to optimize touchpoints, and create a seamless User Experience and data strategy.

A Service Blueprint is a visual representation of the customer journey and all the touchpoints involved. It outlines every step a potential buyer or seller goes through when engaging with your real estate services. To design one, start by mapping out the various stages of interaction, from the initial contact to closing a deal. Identify digital channels, like your website, email, and social media, and physical interactions, such as open houses. Then, connect these touchpoints and establish a clear flow of information and actions.

Creating a Service Blueprint is crucial for several reasons. First, it helps you understand the customer journey comprehensively, ensuring that no aspect is overlooked. It allows you to spot potential pain points, bottlenecks, or areas where the user experience can be improved. This, in turn, leads to more effective and efficient processes like:

-  identify areas where the user experience can be improved

- pinpointing any bottlenecks or points of friction in the customer journey

- allocate your resources more efficiently by understanding how clients move through the sales funnel

- collect data at each touchpoint with a clear map of the customer journey

Hyper-targeted Pay-Per-Click Advertising to capture new category buyers.

Hyper-targeted Pay-Per-Click Advertising allows us to pinpoint our advertising efforts to a highly specific audience. We narrow it down to individuals actively looking for properties in a particular category – whether it's luxury homes, commercial real estate, or first-time homebuyers.

This method leverages data and analytics to identify the keywords, demographics, and online behavior of potential buyers. We craft ads that will only appear to those who match these criteria, ensuring that our marketing budget is invested where it matters most.

When we go with hyper-targeted ads, it serves the following purposes:

- We're presenting potential buyers with what they're actively searching for. This relevance enhances the likelihood of conversion, as they see what they desire.

- It's about meeting the needs of specific categories – a unique selling proposition that grabs attention.

Host Virtual Tours to add value to our customer's phygital journey.

Virtual tours can significantly reduce the time and resources spent on non-serious inquiries. When potential buyers have already taken a virtual walkthrough, you're more likely to engage with genuinely interested parties during in-person visits.

Here are the steps you need to take:

- Quality Imagery: Start with high-quality photos and videos. Invest in professional photography to showcase the property in the best light.

- Interactive Features: Use interactive elements in your virtual tour, like clickable links, 360-degree views, and floor plans. These features enhance the user experience.

- User-Friendly Platforms: Choose user-friendly platforms or software for creating and hosting virtual tours. There are several dedicated tools available that don't require extensive technical expertise.

Create landings and a Content Strategy to connect our audience with the Real Estate Topic.

You need to design specific landing pages that align with various aspects of real estate, like property types (condos, single-family homes, commercial properties), neighborhoods, or services (buying, selling, investing). These pages must be finely tailored to grab the attention of potential clients. For example, if someone's looking for luxury condos in a specific area, they should land on a page exclusively showcasing luxurious condo listings in that locality.

Additionally, it's essential to develop a content strategy that complements your landing pages. Create a variety of content, including blog posts, articles, videos, and infographics, addressing the needs, concerns, and interests of your target audience in the real estate market. Your content should be informative, engaging, and shareable. Consider publishing articles on topics such as "Top 10 Tips for First-Time Homebuyers" or "Investment Opportunities in [City Name]." This approach will draw potential clients to your site and keep them engaged, ultimately boosting your real estate marketing efforts.

These are some of the ideas that we could together work on to build more meaningful campaigns.

Optimize Search Engine Presence by balancing Paid and Organic

An organic search presence signifies trustworthiness and authority. Clients often view organic results as more reliable, as they haven't paid for their position. Organic traffic, once established, can generate leads at a lower cost compared to paid advertising. A balanced approach optimizes your return on investment. Here is how to have a systematic approach:

Keyword Strategy: Carefully research and select keywords that align with the real estate market you serve. This should include a mix of highly targeted, location-specific keywords for both paid and organic campaigns.

Content Quality: Create high-quality, relevant content on your website. This content should not only appeal to search engines but, more importantly, offer valuable information to potential clients.

On-Page SEO: Implement on-page SEO best practices, including optimizing title tags, meta descriptions, and image alt tags. Ensure your website is technically sound, mobile-friendly, and loads quickly.

Local SEO: For real estate, local SEO is vital. Optimize your Google My Business profile and encourage client reviews. Accurate NAP (Name, Address, Phone) information should be consistent across all online platforms.

When you are trying to run Google Ads, here is how you could approach it:

Ad Campaign Structure: Organize your Google Ads campaign into well-structured ad groups. Each ad group should focus on a specific theme or keyword group. This structure ensures that your ads are highly relevant to the user's search query.

Landing Pages: Direct users to dedicated landing pages on your website that match the content and intent of your ads. Ensure these pages load quickly, are mobile-friendly, and provide a seamless user experience.

Quality Score: Monitor and improve your Quality Score, which Google assigns to your keywords and ads. A higher Quality Score can lead to better ad positioning and lower costs.

Digital Marketing Trends in Real Estate To Watch In 2024

Using chatbots and AI-assistants could be game changers

Chatbots represent a powerful and increasingly favored marketing channel integrated with AI, connecting seamlessly with popular social platforms like Facebook, WhatsApp, WeChat, and more.

Marketers across industries are recognizing chatbots as a preferred means of communication, and this trend is making its mark in the real estate domain. The appeal lies in their simplicity and remarkable effectiveness. To put it in perspective, Facebook Messenger bot campaigns, as emphasized by marketing authority Neil Patel, boast an astonishing 88% open rate, surpassing even email marketing in terms of expanding your organic reach.

The setup process for a Facebook Messenger chatbot is remarkably swift, requiring only a matter of minutes. Furthermore, the larger your contact list, the more significant your potential to generate leads through this dynamic marketing channel.

Chatbots and AI-assistants offer 24/7 availability, allowing potential clients to inquire about properties and services at any time. This level of responsiveness can significantly enhance customer engagement.

Virtual Tours would be the norm

Virtual tours provide an immersive experience, allowing prospective buyers to feel like they're walking through a property. This firsthand experience builds a stronger connection and engagement. Buyers can virtually tour multiple properties without the need for physical visits, saving time and effort. This convenience is especially valuable for international or out-of-town buyers.

Virtual tours leave little room for surprises. Buyers can thoroughly examine a property, reducing the likelihood of misunderstandings or disappointments during physical visits.

Virtual staging could help generate interest

Virtual staging proves to be a cost-effective alternative, with potential savings of up to 97% compared to traditional home staging. Numerous AI-driven real estate tools are readily available to assist in this endeavor.

Harness the capabilities of AI to convert vacant properties into fully furnished homes. What's more, you have the flexibility to customize the staging style to align with the preferences and personalities of your target audience and potential buyers. This adaptability can broaden your reach, attracting a more extensive pool of potential homebuyers with minimal effort.

Furthermore, the process is swift, enabling agents to stage multiple properties simultaneously. This not only conserves time but also allows real estate professionals to direct their focus toward other critical responsibilities.

Increased use of voice searches

Voice Search Optimization in Real Estate pertains to the strategy of enhancing online content and websites to boost their visibility and ranking in voice search outcomes, particularly for real estate-related questions.

In today's digital landscape, consumers are increasingly turning to voice-activated queries as virtual assistants and smart devices like Siri, Alexa, and Google Assistant gain popularity. Let's explore a different set of Voice Search Real Estate queries:

"Locate modern waterfront homes in Miami."

"Who are the top real estate agencies in Los Angeles?"

"Display available townhouses in the suburbs."

"What's the average rental cost in downtown Seattle?"

"Which schools are closest to homes in the Maplewood neighborhood?"

These inquiries showcase the diversity of real estate-related voice search and the importance of optimizing content to address them effectively.

We assisted our client, MEXTO, in the O' LIVING project, achieving an impressive 85% of all listings sold in just under one year.

CodeDesign provided MEXTO with a comprehensive solution that addressed their core challenge: achieving remarkable sales results in the O' LIVING project. We leveraged a range of strategies, including integrating CRM for a seamless customer experience, implementing hyper-targeted pay-per-click advertising, hosting virtual tours, optimizing search engine presence, and curating a content strategy. These efforts collectively resulted in an exceptional 85% of all listings being sold in under a year.

We essentially served as a one-stop shop for all of MEXTO's digital needs, from generating leads to closing successful sales. By effectively understanding their customer base, providing them with an array of high-impact digital services, and implementing data-driven strategies, we significantly reduced their cost of sale, demonstrating our ability to solve problems and deliver results. Our partnership with MEXTO was a testament to our capacity to provide a turnkey solution that successfully tackled their specific challenge and delivered exceptional sales performance.

CLIENT COMMENTS

"They were, for sure, a one-stop-shop for all digital affairs and with a great capacity to solve problems.. -

Augusto Homem de Mello, Marketing & Sales  Director

FAQs - Frequently Answers Questions 

How has digital marketing changed the real estate industry?

Digital marketing has revolutionized the real estate industry by enhancing visibility, accessibility, and interaction between agents, buyers, and sellers. Traditionally, real estate marketing relied heavily on physical showings, print ads, and word-of-mouth. However, with the advent of digital strategies, the industry has seen a shift towards online platforms, social media, and virtual tools. This transition has enabled real estate professionals to reach a broader audience more efficiently, leveraging data analytics for targeted marketing, employing Search Engine Optimization (SEO) to improve online presence, and utilizing platforms like Instagram and Facebook to showcase properties through high-quality images and videos. Digital marketing also introduced the use of virtual tours, allowing potential buyers to explore properties remotely, significantly broadening the market beyond geographical limitations. For instance, Codedesign, a notable digital marketing agency, has successfully implemented these strategies for its clients, enhancing their online visibility and engagement, thereby driving sales and improving customer satisfaction rates.

What are the biggest digital marketing challenges for real estate agents?

The most significant digital marketing challenges for real estate agents include standing out in a saturated online market, effectively targeting the right audience, and navigating the rapidly changing digital landscape. In an environment where numerous agents compete for attention, creating unique and engaging content that resonates with potential clients is crucial. Additionally, employing advanced data analytics to accurately target potential buyers and sellers while optimizing marketing spend poses a challenge, especially for those less familiar with programmatic media, DSPs (Demand Side Platforms), and DMPs (Data Management Platforms). Keeping pace with the constant evolution of digital marketing tools and trends requires ongoing education and adaptation. Real estate professionals must also balance online lead generation with maintaining a personal touch in their client interactions, a fundamental aspect of the real estate business not easily replicated in the digital realm.

How can real estate agents stand out in a competitive online market?

To stand out in a competitive online market, real estate agents must create a unique value proposition and consistently deliver high-quality, engaging content. Leveraging the power of storytelling through videos, blogs, and social media can help personalize their brand and connect with potential clients on an emotional level. Implementing SEO strategies to ensure their listings and content rank highly on search engine results pages is crucial for visibility. Real estate agents can also benefit from advanced targeting and retargeting strategies through programmatic advertising, reaching potential clients at various stages of the buying process with tailored messaging. Utilizing tools like virtual tours and interactive floor plans can differentiate their listings. Networking and partnerships can also enhance visibility and credibility online. Agencies like Codedesign have demonstrated success in elevating real estate clients above the competition by employing these sophisticated digital marketing strategies.

What compliance and regulations should real estate digital marketing adhere to in different regions?

Digital marketing in the real estate sector must navigate a complex landscape of compliance and regulations that vary significantly across different regions. These regulations often pertain to advertising standards, data protection and privacy laws, and specific real estate marketing regulations. For instance, in the European Union, the General Data Protection Regulation (GDPR) imposes strict rules on how personal data can be collected, stored, and used, impacting how real estate agents can target and communicate with potential clients. In the United States, the Fair Housing Act prohibits discrimination in advertising, and the Real Estate Settlement Procedures Act (RESPA) governs referral fees and kickbacks. Real estate professionals must ensure their digital marketing practices comply with local licensing laws, which can dictate how properties can be advertised and represented online. It is crucial for real estate agents and their marketing partners to stay informed about and adhere to these regulations to avoid legal issues and maintain trust with clients.

How do you choose the right attribution model for real estate marketing?

Choosing the right attribution model for real estate marketing involves understanding the customer journey and recognizing the touchpoints that significantly influence conversions. The complexity of real estate transactions, where the decision-making process is lengthy and involves multiple online and offline interactions, makes this particularly challenging. A multi-touch attribution model often provides the most accurate reflection of the customer journey, attributing value to various marketing efforts that contribute to the final decision. For instance, models like linear, time decay, or position-based (U-shaped) can offer insights into how different channels contribute to attracting leads and closing sales. Analyzing the data from these models helps in optimizing marketing budgets, focusing on high-performing channels, and refining strategies. Real estate marketers should consider the specific goals, available data, and analytical capabilities of their team when selecting an attribution model. Advanced analytics and AI-driven tools can also assist in navigating these choices, providing deeper insights into customer behavior and marketing performance.

What role does a CRM play in integrating paid and owned digital marketing strategies for real estate?

A Customer Relationship Management (CRM) system is pivotal in integrating paid and owned digital marketing strategies for real estate by centralizing customer data, enabling personalized marketing, and tracking the effectiveness of various channels. CRMs help real estate professionals manage leads generated from paid advertising (like PPC campaigns) and owned media (such as website visits and social media engagement) in one platform, offering a unified view of the customer journey. This integration facilitates targeted communication based on customer behavior, preferences, and interaction history, allowing for more personalized and effective marketing efforts. Additionally, CRMs can automate follow-up processes and lead nurturing, increasing the efficiency of marketing campaigns and improving conversion rates. By analyzing data from the CRM, real estate agents can identify the most effective marketing strategies and channels, optimizing their spending and efforts for better ROI. In essence, a CRM system not only helps in effectively managing and nurturing leads but also plays a crucial role in refining and enhancing the overall marketing strategy.

How can real estate agents benefit from hyper-targeted Pay-Per-Click advertising?

Real estate agents can significantly benefit from hyper-targeted Pay-Per-Click (PPC) advertising by reaching potential clients at the right time with the right message. By leveraging data analytics and advanced targeting options available in PPC platforms, agents can customize their advertising efforts based on demographic information, geographic location, search behavior, and even user interests. This level of targeting ensures that ads are shown to individuals who are most likely to be interested in buying or selling property, increasing the likelihood of conversion. Moreover, PPC advertising offers the flexibility to adjust campaigns in real time based on performance data, allowing agents to optimize their ad spend and maximize ROI. Hyper-targeted PPC campaigns can also complement organic search strategies by increasing visibility for competitive keywords that are hard to rank for organically. With the ability to track conversions and measure the effectiveness of each ad, real estate agents can refine their marketing strategies to focus on what delivers the best results, ensuring efficient use of their marketing budget.

Why are virtual tours becoming essential in real estate marketing?

Virtual tours have become essential in real estate marketing as they offer a convenient, immersive, and interactive experience for potential buyers to explore properties from anywhere at any time. This technology has gained importance due to its ability to enhance online listings, making them more engaging and informative. Virtual tours can significantly extend the reach of real estate marketing efforts, breaking geographical barriers and attracting out-of-town buyers. They also provide a 24/7 open house experience, allowing potential buyers to view properties at their convenience, which can lead to faster decision-making and increased interest. Moreover, virtual tours save time and resources for both agents and buyers by reducing the need for in-person showings to only the most interested prospects. During times of social distancing or for buyers looking to purchase properties in different locales, virtual tours offer a practical solution. They also add a layer of sophistication to listings, showcasing properties in high definition and from multiple angles, which can help in standing out in a competitive market. Real estate agencies utilizing virtual tours have reported higher engagement rates, more inquiries, and quicker sales cycles.

How can real estate professionals optimize their search engine presence?

Real estate professionals can optimize their search engine presence by implementing a comprehensive Search Engine Optimization (SEO) strategy that includes keyword research, on-page optimization, quality content creation, and building a strong backlink profile. By identifying and targeting keywords relevant to their market and services, agents can improve their website's visibility for those searches. On-page SEO tactics such as optimizing title tags, meta descriptions, and header tags, and ensuring website speed and mobile-friendliness, are crucial for better rankings. Creating valuable content that addresses the needs and questions of potential buyers and sellers can attract organic traffic and increase engagement. This content can range from blog posts and market analyses to buyer guides and neighborhood profiles. Additionally, earning backlinks from reputable sites in the real estate industry and local business directories can enhance domain authority and search rankings. Regularly monitoring SEO performance and adjusting strategies based on what works best are key to maintaining and improving search engine visibility. Employing these strategies effectively requires continuous effort and adaptation to the evolving algorithms of search engines.

What are the emerging digital marketing trends in real estate for 2024?

Emerging digital marketing trends in real estate for 2024 focus on leveraging technology to enhance personalization, user experience, and engagement. Artificial Intelligence (AI) and machine learning are increasingly being used to analyze customer data and predict buying behaviors, enabling highly targeted marketing campaigns. Voice search optimization is becoming more critical as smart speakers and voice-activated devices gain popularity, requiring real estate websites to adapt content for voice search queries. The use of augmented reality (AR) and virtual reality (VR) to create immersive property viewing experiences is on the rise, offering potential buyers a more engaging way to explore properties. With the growing importance of social media, platforms like Instagram and TikTok are becoming vital channels for showcasing properties through dynamic content like live tours and story features. Additionally, the emphasis on sustainability and eco-friendly properties is shaping marketing strategies, appealing to environmentally conscious buyers. Real estate professionals are also adopting blockchain technology for secure and transparent transactions. These trends indicate a shift towards more interactive, personalized, and technologically advanced marketing strategies in the real estate industry.

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