Management Consulting/ADVERTISING MANAGEMENT.
Suggest appropriate media while determining advertisements for real estate segment products in Indian scenario.How will you decide suitable appeal in creating advertisement.
2. Suggest appropriate media while determining advertisement for real estate
segment products in Indian scenario. How will you decide suitable appeal in
Factors to Consider in Your Real Estate Advertising Budget
Your Recent Sales History
It’s not simply enough to look at what’s in your bank account to determine how much you should spend. As a thoughtful marketer, you want to align your marketing budget with your sales goals. Not enough marketing = not enough sales. Not enough sales = not enough income. There are a few ways to identify the right ad spend for you.
First up is your sales records. Look into your real estate past to see what returns you had on closed deals. Data from the past year, if available that far back, can be the most useful when figuring out what you can afford to spend on marketing. Even just a few months worth of sales records can help inform your decision-making. Be sure to examine these details closely:
• The final sale price on homes you sold
• Your average commission from these deals
• The total number of transactions conducted
One thing to remember when analyzing your sales records: If you closed an abnormally high number of deals last year, that may not be indicative of future trends. Similarly, if you had an off year during the previous 12-month period, that may not point to continually slow conditions. Find your average sales total for each month and quarter and you’ll have a good idea of what you can expect throughout the coming year.
Once you’ve accounted for such irregularities, look at the top-line numbers. How much, in total, did you spend on marketing? And, how much, in total, did you earn from commissions? While you can’t guarantee that spending the exact same amount will result in the exact same earnings, it’s a pretty good bet that spending much less won’t help your income, while spending more should boost your income.
Local Real Estate Conditions
In addition to your past sales, expert market forecasts should also be taken into account when budgeting. Aside from relying on major organizations and agencies to provide you with statistical trends, data, and analysis about the housing market, consult local groups and experts as well to see what your community’s conditions are expected to look like in the months ahead. Contact those who closely study your market, like your state or regional Realtor organization, and ask for any reports about the area housing market. Data points related to home sales, prices, and construction, along with economic conditions, like unemployment and business growth, are the ones to know.
It may be counter-intuitive, but a slow market typically means you need to increase your marketing spend in order to generate the same number of sales. Even though there are fewer transactions, there’ll still be just as many agents competing for that business, so you’ll need to do more to meet your sales goals.
“Many a small thing has been made large by the right kind of advertising.”
— MARK TWAIN
Industry Averages for Ad Spend
Knowing what the averages are for real estate agents when it comes to ad spend can also aid your budget creation. Yes, budgets for some agents may far exceed what you can spend on yours. However, you can still identify how much money is typically spent on ads from these statistics.
For instance, data from the National Association of Realtors reveals the average Realtor spent $128 on paid advertising and $78 on search engine optimization (SEO), blogging, and social media marketing per month in 2012. Bureau of Labor Statistics data shows agents made a median $42,000 that year. How much you put toward advertising depends entirely on how much you feel comfortable with, but knowing figures like these can give you a basis for comparison when budgeting.
Here are some additional ad spend figures from our infographic The Cost of Being a Real Estate Agent that can give you a glimpse into what the average agent spends on their online and offline paid advertising:
Fellow Real Estate Agents and Brokers
Another factor to consider in setting your budget is what fellow colleagues are spending on their marketing. Contact any agents in your personal network who you feel can offer insight into how to structure your budget. Try to get specific dollar figures from them if possible and learn from their past budgeting mistakes. For example, if they over- or under-allocated, or put some of their budget toward marketing tactics that didn’t pan out, you’ll get an idea of what to do and not to do with your ad dollars.
Also, if you work at a brokerage, see if someone there is willing to help you find some data about marketing budgets used by current or past agents. Brokers want to see their agents succeed, so simply ask yours if they have records for the communities and price ranges you work with most often.
Typical Paid Advertising Costs
Once you’ve closely looked over these factors, it’s finally time to take a look at what specific paid advertising types will best fit your real estate marketing plans. If you’re looking to have a greater presence on social media, you could look into ads on Facebook. If PPC is something you’re interested in, learn the basics of setting up AdWords. You can evencreate some display ads, like banners, to increase brand awareness and get clicks to your real estate website.
Whichever avenue you choose, be sure to analyze the ad type’s feasibility both financially and functionally. Put more simply? Make sure you have enough money to advertise on the platform of choice, but also know how to maximize your ads. Making the most of your ad dollars means closely tracking which ads work well for you, discovering what made them successful, and using that data to make them even better. Regardless of how much you spend on real estate advertising, you’ll only see success by frequently analyzing your metrics.
Appeals: How Ads Generate Resonance
Appeals: How Ads Generate Resonance
A fear appeal dwells upon the negative consequences that can result unless a consumer takes the recommended action. A recent advertising campaign for the Volkswagen Jetta took this approach; spots depict graphic car crashes from the perspective of the passengers who chatter away as they drive down the street. Without warning, another vehicle comes out of nowhere and brutally smashes into their car. In one spot, viewers can see a passenger’s head hitting an airbag. The spots end with shots of stunned passengers, the damaged Jetta, and the slogan “Safe happens.” The ads look so realistic that consumers have called the company asking if any of the actors were hurt.Brian Steinberg, “VW Uses Shock Treatment to Sell Jetta’s Safety, Ads Test a Risky Approach with Graphic Car Crashes; ‘Any of the Actors Hurt?’” Wall Street Journal, April 19, 2006, B4.
Brinks Home Security
(This Brinks commercial uses a fear appeal.
Advertisers often resort to fear appeals when they want to bring about a radical behavior change, such as driving responsibly, eating healthily, or quitting smoking. Other fear appeals use ostracism by others—due to body odor or bad breath or limp hair or yellowed teeth or using outdated products—to create feelings of insecurity that the consumer can overcome by doing—guess what? A British print ad for a deodorant depicts a geeky young guy with the caption: “Yo, Sewer Boy!” Subtle.
How well fear appeals work depends on how easy it is to comply with the ad’s message. A switch to a stronger, longer-lasting deodorant to avoid embarrassing stains is quite doable, and it is easy to see a benefit (if indeed the deodorant works). In contrast, fear appeals that discuss the negative consequences of smoking have to climb a higher hill because the behavior is extremely hard to change (despite good intentions) and it’s harder to detect the (long-term) health benefits. Sometimes the fear appeal is too strong and makes consumers tune it out, especially if the ad does not present a solution. Scare tactics may also backfire as people cope with the negative feelings or guilt the ad inspires by deciding the threat does not apply to them.
One famous TV commercial that relied on a heavy dose of fear was an ad for presidential candidate Lyndon Baines Johnson in 1964. The campaign showed a little girl counting daisy petals in a field, “1, 2, 3.…” Then, a voice-over started a countdown, “10, 9, 8…” leading to the image of a telltale mushroom cloud as an atomic bomb exploded. “These are the stakes,” the voice-over said, concluding with “the stakes are too high for you to stay home” while the screen displayed the words “Vote for President Johnson on November 3.” This classic spot stirred up voters’ fears about the heavy trigger finger of Johnson’s opponent, the conservative politician Barry Goldwater, and (analysts say) contributed to his huge defeat in the election.
“A guy walks into a bar.…” A humor appeal makes us laugh and feel good. But it’s often difficult to execute well, because people have to understand the humor and they have to get the link to the brand. Like sex appeals, sometimes the very humor that gets our attention distracts us from remembering the ad or from influencing our behavior.
It also helps when viewers don’t get offended; this can be an iffy proposition especially when ethnic or national stereotypes are involved. An outdoor ad in Belgium to promote the speedy new Eurostar train service from Brussels to London via the English Channel backfired when a group of British journalists discovered it. For some reason they didn’t appreciate a poster that showed a shaven-headed English soccer hooligan urinating into a teacup. For Belgians this imagery made sense because the fan’s pose mimicked a very famous Brussels landmark, the Manneken Pis statue.Eric Pfanner, “Ad for New Train Service Strains European Taste,” New York Times Online, December 3, 2007, http://www.nytimes.com/2007/12/03/business/world
business/03eurostar.html (accessed February 10, 2009). The Brits didn’t appreciate the architectural reference.
One advantage of humor is that it reduces counterarguing; this occurs when a consumer thinks of reasons not to agree with the message. Because the comedy distracts us from our tendency to come up with reasons why we shouldn’t change our opinions, we are more likely to accept the message a humorous ad presents, as long as it does not insult or make fun of us (somehow laughing at the other guy is OK).
Humorous appeals are seldom used by banks, which tend to project a more staid image. That’s why Community Bank System decided to use a lighthearted campaign with the message “Bank Happy.” “We really wanted to find something different, something that was unbank-like and, if you look at those headlines and the disclosures, there’s humor built in,” said Hal Wentworth, the bank’s director of sales and marketing. The campaign was designed by Mark Russell and Associates and took five months to produce. How does the bank use humor? To establish the tie to happy experiences, one ad says, “The feeling you get when you eat chocolate. Now available in a bank.” It even brings amusement to the fine-print copy at the bottom of the page. Although most people skip this, the fine print in the “Chocolate” ad says, “If you’re reading this, you’re probably thinking there’s some kind of catch. Something that requires us to write more about it in the fine print. But there isn’t. Oh sure, we could go on and on about ourselves. Like how we’re committed to serving rural areas. And how most of our people have been working with us for years. And how all of our loan decisions are made locally by folks you’ve probably cheered with at soccer or baseball games. But we won’t. Instead, we’ll just tell you that when we say ‘Bank Happy,’ we mean it. We don’t want you to ‘Bank Reasonably Contentedly’ or ‘Bank Kinda Sorta Pleased.’ We want you to Bank Happy. And we’ll do whatever it takes to make that happen.”Quoted in Karen Krebsbach, “Community Bank’s ‘Bank Happy’ Sets Cheerful, Playful Tone,” US Banker 117, no. 7 (July 2007), 28. These days, more people in the banking industry could probably use a good laugh.
Hillary Clinton and several other presidential candidates introduced humor into their political ad campaigns in late 2007. Surveys showed that the public thought humor was a good idea and a welcome change from negative ads. By the fall of 2008, candidates were practically becoming regulars on The Ellen DeGeneres Show, Late Night with David Letterman, The Tonight Show, and Saturday Night Live. People enjoy laughing, and it makes them more comfortable with the candidates. “Of course, the humor had better be funny,” added Rob Earl, of Watson, Earl & Partners. Nancy Newnan of Catapult Communications also welcomes jokes—within limits. “A dose of humor is always welcome, as long as they keep it in its place and not forget the importance of projecting the image of a world leader.” But not everyone wants punch lines from politicians. Humor is too subjective, said Alienware’s Juan Carlos Hernandez. “Humor…leaves a lot to the public’s interpretation, which at the end is negative because what I may think is not actually what the candidate was aiming for.”Quoted in Ken Wheaton, “Political Ads that Provide a Laugh?” Advertising Age, August 6, 2007, 4. What’s your take on this issue—does humor have a place in political campaigns, where the issues are serious and the stakes high? Should Comedy Central’s Jon Stewart and Stephen Colbert do campaign ads—or run for President themselves?
The logical appeal is a rational one; it describes the product’s features, advantages, and price. Although most of the appeals we’ve talked about so far have emphasized emotion, that doesn’t mean that logic has no place in ads. Indeed, advertising that provokes a strong emotional response without providing sufficient product information is unlikely to change behavior and increase market share. It breaks through the clutter but doesn’t necessarily induce people to buy. This is what the Center for Emotional Marketing discovered when it performed a meta-analysis that combined the results of eight separate research studies. The results held true across a range of consumer product categories from food and health and beauty to automotive and technology.Leslie Picot-Zane, “Is Advertising Too Emotional?” Brandweek, January 9, 2006, 18.
Purely emotional advertising is memorable but doesn’t build business. The advertising connects with consumers, but it fails to make use of that connection with the credible information needed to change people’s minds. This is particularly true of humor appeals. A study conducted by McCollum/Spielman shows that 75 percent of funny ads have an attention response rating equal to or higher than average, but only 31 percent are actually more persuasive.
The solution? Advertisers need to strike a balance with campaigns that integrate product information and emotion. Logic and emotion work in concert to help consumers make decisions.Sang-Pil Han and Sharon Shavitt, “Persuasion and Culture: Advertising Appeals in Individualistic and Collectivistic Societies,” Journal of Experimental Social Psychology 30 (1994): 326–50. Effective advertising needs to convey both seamlessly.
Finally, advertising can be relevant to consumers when it uses a values appeal; this type of message relates to people’s strong underlying beliefs about priorities in their lives and morality. A research team conducted a comprehensive study of values across thirty countries to identify universal values that people hold regardless of where they live. The researchers found six categories of values that are universal:
Striver: Ambitious people who seek power, status, and wealth
Fun-Seeker: Individualists who seek excitement, leisure, variety, and adventure
Creative: Open-minded people who want freedom, fulfilling work, and self-reliance
Devout: Spiritual people who are traditional, respectful, modest, and obedient
Intimate: Supportive people who create strong, deep bonds with friends and family
Altruist: People who want equality and justice for everyone in society and care about the environment
Certain countries exhibit a predominance of some of these values over others. For example, more than one-half of all Swedes are Intimates, which means that they emphasize social relationships as guiding principles in their lives. In contrast, 46 percent of Saudi Arabians identify Devout values as their guiding principles, while 52 percent of South Koreans are Strivers. Another study found that North Americans have more favorable attitudes toward advertising messages that focus on self-reliance, self-improvement, and the achievement of personal goals, as opposed to themes stressing family integrity, collective goals, and the feeling of harmony with others. Korean consumers exhibited the reverse pattern.
Creating advertising messages that resonate with your target audience means identifying and appealing to the values that motivate their behavior. For example, Taco Bell’s advertising campaign “Think Outside the Bun” appeals to Creatives who seek novelty and learning new things. In contrast, the “Night Belongs to Michelob” campaign appeals to Intimates who value romance and friendship. Finally, British Petroleum’s “Beyond Petroleum” campaign appeals to Altruists who value social responsibilities and preservation of the environment.Simeon Chow and Sarit Amir, “The Universality of Values: Implications for Global Advertising Strategy,” Journal of Advertising Research 46, no. 3 (2006): 301.
Occasionally ad executions invoke a values appeal when they show how a product goes against a group’s values. This approach appeals to target consumers who are rebellious or nonconforming. To appeal to teenage viewers, the CW network launched a campaign to promote the TV show Gossip Girl that includes quotes from the Parents Television Council, an advocacy group that has criticized the show for its graphic inclusion of sex and drugs. One ad shows two of the underage characters together in bed, below a caption that reads “Mind-blowingly inappropriate!”Brian Steinberg, “Need a Slogan? Ask Your Harshest Critic; CW Proudly Declares ‘Gossip Girl’ Is ‘Mind-Blowingly Inappropriate,’” Advertising Age, July 23, 2008, http://adage.com/mediaworks/article?article_id=129837
(accessed July 24, 2008).
It’s interesting to note that individuality is a value most closely associated with the Fun-Seeker segment. Countries that have a high percentage of Fun-Seekers in their population include the United Kingdom, Canada, Australia, and Germany. Creating a winning brand position in these countries might entail targeting the Fun-Seeker buyers with a brand that can offer an avenue to self-expression. In contrast, countries where individuality ranks lowest are the Devout-dominant countries of Indonesia, Egypt, and Saudi Arabia, where duty and faith outweigh personal expression. Self-expression appeals would not work well in those countries.