Is Print Advertising Dead? Don’t Bury Publications Just Yet
Those of us who were awake for high school English class may remember the often-misquoted words of Mark Twain: “The report of my death is an exaggeration.� The same can be said of print advertising, based on the result of several surveys.
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In their 2007 Profile of Home Buyers and Sellers (not available on the Web that I’m aware of), the National Association of REALTORS® reports that 31% of all homebuyers used a “home book or magazine� in their home search. Surprisingly, the largest percentage that used a “home book or magazine� was those 18-24 years old. Overall, 50% used a “print newspaper advertisement� as a source of information, and the number one source was actually a tie between real estate agent and the Internet, both cited by 84% of survey participants.
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According to a recent survey by the Pew Internet and American Life Project, “When asked about the things they did to get going with their housing search, respondents cast their nets widely. They were equally likely to say they used the Internet, newspaper ads, or a real estate agent.� The percentages break down like this: Internet 49%, newspaper 49%, real estate agent 47%. Of those who used the Internet, 42% said it had no impact at all on their housing decision, 36% said it had a minor impact, and 15% said “their online searches produced poor or misleading information.�
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The study concludes, “For real estate, people do not use online resources to circumvent traditional means of finding a place to live, but they do use the Internet to conduct their search more efficiently.�
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This information squares with data gathered through a broad survey commissioned by The Real Estate Weekly in 2006. It showed that 75% of those who had looked for a property in the previous 2 years searched on the Internet. But, the survey also showed that 37% of all respondents read The Real Estate Weekly. And of those who said they read the Weekly, 86% said they read it to get an idea of the market and 45% used to look for a property.
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Realty Times conducted another survey on the subject this past October. In reporting on the results, Realty Times said its readers had declared “they’re spending more, not less money on advertising, they don’t like the results they get from the Internet, and they say that print advertising is dead.�
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This premature obituary for print advertising isn’t surprising; it’s a commonly held belief among many. Realty Times also reported the following: “many [readers] report that sellers still demand to see local newspaper ads for their homes.â€? I hear the same thing anecdotally in my conversations with media and real estate professionals. If that’s the case–that print advertising is placed primarily to placate buyers, despite the fact that more people search for real estate on the Internet–why not send sellers a Web link to their property listing? Could it be that sellers, as former buyers, know that print advertising is still an important source of real estate information?
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In the final analysis, many people still want something that they can hold, leaf through, take anywhere, mark up, cut up, and put aside for future reference and that doesn’t crash, break when dropped, or require electricity or batteries. Though not the dominant advertising entities they once were, newspapers and other publications are still vibrant sources of real estate market information for a large percentage of the home-searching public.
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So, save your condolences for those things that have truly passed away—vinyl records, cheap gasoline, black and white television, AMC cars—and pick up a copy of your favorite real estate publication. To paraphrase Mark Twain, the report of their death is an exaggeration.
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I may be bias, but I have always said that a multi-faceted approach to advertising is the best. I guess you could choose the Internet as a niche market and only advertise there, but that would only work if you were only a buyer’s agent. If you are marketing a home, you do not know where the buyer is in the world of media.
Of course the real problem is that there are SOOOO MANY options out there. Before the real estate boom of 2004-6, there was the Progress and the Real Estate Weekly that handled most of the print ads. Now there are a half dozen other publications in this relatively small market. TV has also splintered, but it still viable for ads. I think print is the same way. It will be interesting to see which print publications fold in this more challenging market.
Comment by Dave Phillips — May 27, 2008 @ 3:34 pm
I think (at least) two things -
1 - To sell a house - put the property online so that it is “findable” by the buyers and the Realtors.
2 - To brand a company/image/identity - print’s consistency is functional, but the cost is generally prohibitive for many.
3 - Until Realtors are comfortable/confident telling the Sellers that print doesn’t sell houses, Sellers will still think that print does sell houses.
Comment by Jim Duncan — May 27, 2008 @ 3:42 pm
[...] Where will we go from here? Realtors will keep competing, buyers will keep searching online, sellers will still think that print advertising works (it does, but not to sell houses), and technology will continue to change at a pace much faster than behemoths like the NAR or the incompetents within our federal government can handle. [...]
Pingback by Untitled | Real Central VA — May 28, 2008 @ 8:45 am
Chris, vinyl records are not dead
I was visiting a Seller in Charlottesville a few weeks ago and he showed me his “high-end” audio set up where digital CDs sound too harsh and vinyl records are all the rage - and the vinyl records business is small, but strong. Print publications (such as RE Weekly) are good to read while waiting in line or at a doctor’s office waiting for the doc to show up, to flip through and get an idea of the market: but we all know that the print data is only as good as the pre-print date. Consumers are “getting ideas” from print, but do we have data to show that they are actually buying properties from print ads? It seems to me that a good number of real estate firms run ads to keep up their image as a major player in the local real estate scene. I agree with Dave that a smart, multi-faceted approach is still the best way to go.
Comment by Pavel Dovgalyuk — May 28, 2008 @ 10:34 am
Pavel, Thanks for setting me straight on my premature obituary for vinyl records. I would compare print advertising to your analysis of the vinyl record business–small, but strong. I also agree with you and Dave that multifaceted is the best approach to advertising. As for where people found the home they purchased, the only numbers I’ve seen on that are from NAR. In 2007, according to the NAR survey referenced above, buyers found the home they purchased through: real estate agent 34%; Intenet 29%; yard signs 14%; home builder or their agent 8%; friend, relative, or neighbor 8%; print newspaper ad 8%; directly from sellers 3%; home book or magazine 1%. But to me, that particular NAR survey question doesn’t get at the scope of print advertising. How do the 34% choose their real estate agent? How did the 29% find the Internet site to search on? In terms of the entire home buying process, people are still relying on print for information, even if they may not have found the exact home they purchased in a publication.
Comment by Chris Allerton — May 28, 2008 @ 1:01 pm
As consumers become more informed their desire to see their homes in the newspapers will decrease dramatically….
http://www.justnewlistings.com/arlington-virginia-blog/jay-seville/truth-vs-bullcrap-about-selling-your-home-stop-overpaying/show/
Comment by Jay — May 28, 2008 @ 2:00 pm
This is a great thread on a very hot topic! Chris, I agree with you that some folks ‘may’ find their Realtor or internet search sites through the print media, but frankly, we are all using the internet for that quick, immediate and important (or not so important…:-) information we are looking for…Shopping online, searching for vacation destinations, travel arrangements and other professional services…So IMO our clients are doing the same in looking for locations to live, homes to buy and yes, even Realtors!
Comment by Arleen Yobs — May 29, 2008 @ 5:24 pm
Good topic! Here’s my take: My buyers are usually disappointed in the print ads because there’s not enough information, sometimes not even the asking price. My buyers are frustrated with having to call every listing agent in the print ads only to find out it’s not for them, then having to listen to a sales pitch to choose them as their agent. Print ads, for professional image, not necessarily advertising my listings, seems to have the most impact on attracting clients. My sellers don’t have a hard time accepting that the internet is where the best & most exposure lies. My sellers also have been relieved that open houses are inaffective more now than ever so they don’t have to bother (but, yet another topic). So, the internet is where the vast majority of my marketing money is going.
Comment by Cynthia Hash, Keller Williams Realty — May 29, 2008 @ 8:57 pm
So if the marketing money is shifting to the internet is it really “shifting” or is it just not getting spent because a lot of online resources are free but require time and effort (which is not free) ? It’s amazing how much online ad space one can get for $350 (average one time 1/4 page run in a local publication).
Comment by Pavel Dovgalyuk — May 30, 2008 @ 11:48 am
Pavel, you must be advertising in the wrong publication
The “open” REALTOR® rate for a 1/4 page ad in The Real Estate Weekly is only $160. And under your firm’s contract, it would only be $76 for a 1/4 page.
If the Realty Times survey referenced in my post is any indication, more, not less, is being spent on real estate advertising. And, another finding of that same survey is that “over half [the] respondents said they aren’t getting enough leads online.” It will be interesting to follow how it all shakes out.
Comment by Chris Allerton — May 30, 2008 @ 12:42 pm