Why More Than Half of the Money Spent on Advertising is Wasted in Real Estate Business?

A famous marketing guru Mr. John Wanamaker said “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”  This motivational line has inspired thousands of marketers globally.

Advertising is nothing but any paid activity which is done for brand awareness or brand promotion. Advertising could be online or offline but online i.e. digital advertising is getting more popular these days. SMEs all over the world are started doing online advertising to improve the brand awareness and sales. Only big players used to do advertising i.e. mostly offline advertising like TV, Radio, Print, Outdoor etc. earlier but online advertising has changed the way of advertising from past 5 years. Digital media is become one of the efficient, affordable and convenient way of advertising where you can stop the ads any time which is not possible in traditional advertising.

I have run many media buying & planning and digital marketing ads for many clients in Mumbai especially in Real Estate and Finance field. I have analyzed each and every campaign i.e. radio, print, outdoor, seo, ppc, social media, email marketing, sms marketing, watsapp marketing by using lead tracking software. I recently ran media buying & planning and digital marketing campaign real estate Company in Mumbai. I suggested client to use CRM software to track and analyze the leads and which helped us to know the quality of leads. CRM software helped us to know how many leads came from which platform and quality of leads.

We spent around 10 crores for online and offline ads and we allocated 80% of budget for offline ads and 20% budget for online ads. We were able to generate more than 10,000 leads but still we could have generated leads around 15,000 if we would have optimized the campaign in terms of media spent. We got around 6,500 enquiries from offline ads and 3,500 from online ads. We wanted to get more than 5,000 leads from online ads and 10,000+ leads from offline ads.

Why half of the money spent on advertising was wasted?

We wanted to get more than 5,000 leads from digital marketing and 10,000+ enquiries from offline ads but it didn’t happen due to campaign targeting. We could have skipped some activities to get better result by spending more money on performing mediums or activities. So we should be aware of the performance of online and offline mediums.

Why many Real Estate Developers waste money?

I have seen many real estate players from mumbai are spending heavily on Digital and outdoor media for brand awareness and lead generation. Most of real estate players get failed due to wrong objectives and targeting. They should know their Target Group but sometimes they don’t understand which websites or medium they are targeting for promotion. They should do the analysis of the website by looking at the audience which daily visits on their website. I wouldn’t take name of some real estate players here because it may violate the terms and conditions. I would suggest them to analyse the website audience first then it will help to reach the right audience. They are spending not only on Digital but also on Print, Outdoor. If you are roaming or travelling anywhere in Mumbai, you would always see real estate projects’ ads. They should monitor leads coming from different mediums by conversion optimizer or CRM software.

 

What should they do to save their money?

  • They should hire a professional ad agency which would help them to track spend and leads of each medium by using CRM or lead management software.
  • They should know whether TG lies on particular medium or not.
  • If TG is HNI or CXO people then they should select only those sites or medium where these people will be targeted.
  • They should do emailer campaigns to only those users who come under their property ticket size i.e. if x user’ yearly income it 5 lacs and he is getting emailer of property cost is more than 50 lacs then such kind of emailer campaigns would get failed. The same thing happens with SMS marketing; most of the times SMS campaigns get failed due to mass SMS blast.
  • They should do print ads only on those news papers where TG audience read.
  • They shouldn’t spend heavily on Outdoor ads as cost per leads is quite high if compared other advertising platform.
  • They should spend money only on those platforms where leads are delivered e.g. PPC, SEO, Real Estate Portals, Email Marketing etc.

Conclusion:

In real estate business more than half of the money spent on advertising due to mass advertising. Offline advertising is costly than online ads and we can’t stop offline ads even if it is not forming but in online marketing it is quite possible. We should target only those medium or platforms where TG spends their time. You can generate good number leads if all the activities are implemented smartly by using leads management software or CRM software.

About Anurag Golipkar 49 Articles
Anurag, with more than 7 years experience in the field of Digital Marketing, is a B.E (IT) from Mumbai University. Currently pursuing an MBA, he has over the years mastered the art and science of targeting the online customer, be it through SEO, SEM, SMM or other online media. A certified professional in Google Adwords & Analytics and Hubspot, he brings tremendous value and thinking to brands that want to optimize the use of the online medium.

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