By: E&P Staff
Borrell Associates revised its 2005 estimate for online real estate spending and is now projecting a 55% increase compared to 2004, to $1.8 billion. In four years, the research firm expects online media to account for more than one-third of all real-estate ad spending, coming at the expense of newspapers, magazines, and direct mail. Borrell is forecasting online advertising spend to reach $3 billion in 2009.
The sudden growth indicates that agents, brokers, and developers are beginning to commit sizable portions of their marketing budgets to online media, said the memo issued today by Borrell. The firm also points out there’s a migration away from traditional mass media toward lead-generation programs and search-engine advertising.
Another trend the firm has noticed is the shift away from Web site development to online ad spending. “We believe this is due to agents and brokers reaching satisfaction with their sites and shifting more money toward lead-generation programs and traffic-driving media to promote sites,” said the memo.
A full report on online real estate advertising will be issued this summer by Borrell.