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The Real Estate Marketer's 2nd Half Playbook
It feels like halftime. However, in this case, the “players” being real estate buyers, sellers, agents and renters and the “opponent” being the COVID-19 pandemic. In this edition of 'Now RE+AD This', we reevaluate the real estate marketing playbook, rethinking the next course of action to lead to a “victory” in the 2nd half.
The 1st Half Rundown
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64% of marketers have responded to the COVID-19 crisis by delaying their ad campaigns until “later” in the year. For real estate marketers, “later” is rumored to be June as a ‘Summer/Fall is the new “Spring”’ strategy is adopted.- People will spend an additional 1hr 5 min/day consuming media in 2020 than 2019, with digital accounting for 40 minutes and mobile showing the biggest increase by 24 minutes/day. (eMarketer)
- Social and digital experienced a 50% decrease in ad prices in April and while we have seen a slight rebound in May, prices are expected to remain below 2019 costs for the remainder of the year. (But don’t worry folks, Google & Facebook will be just fine as their ad revenues are nonetheless expected to increase nearly $30B over 2019.)
This is a marketer’s dream -- attention up, prices down and reduced competition. But the question remains: will there be consumer demand? And if so, when?
An Offensive Approach
Referencing this 2008 post-recession HBR article outlining how to plan your marketing when economies tank, there are four types of recession-era consumers:
- Slam-On-The-Brakes: most vulnerable, unemployed, reduce all spending
- Pained-But-Patient: largest segment, unscathed by unemployment, but who become Slam-On-The-Brakes as news worsens
- Comfortably Well-Off: feel secure and consume at pre-recession levels, top 5%
- Live-For-Today: urban and younger, still spending, they rent and buy experiences, not stuff
Interestingly enough, real estate is considered an “Essential”, a necessity, even for pained consumers who may be looking to trade down, rent or find a good deal. Meaning, heavily marketing the right product at the right time using targeted online advertising is as important as ever. Marketers should be prepared to:
- Trim their marketing surgically by running on measurable channels: digital search, display & social
- Do not under price. Instead, appeal to the customer with solutions-oriented tailored messaging specific to these unprecedented times
- Respond quickly as things start to resume
CASE IN POINT: Leading home builder Lennar's 'Everything’s Included' product appeals to the Pained-But-Patient consumer who is looking for total move-in convenience when COVID-19 eases. Offering a turnkey experience to consumers seeking new construction, easy shopping, and to be outside of dense metro areas without the hassle of attending open houses successfully showcases Lennar's tailored services in response to the current economic situation.
The Big Picture
As people reevaluate where and how to live at home as a result of shelter-in-place, Google searches soar for terms related to “home” and “mortgage”... but not “real estate.” We are experiencing an emotionally-driven paradigm shift as the meaning of “Home” has become deeper than ever. You don’t live in Real Estate, you live in a Home.
Why does this matter? Long-term consumer real estate changes are happening. Rather than going dark or pausing marketing efforts, this is a crucial time to remind consumers you are here for them with emotionally-charged, solutions-oriented messaging to appeal to consumers who are looking for answers as to how to navigate an unknown future.
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CASE IN POINT: Zillow and Coldwell Banker recently pivoted their advertising messaging in response to this paradigm shift by focusing on how they are more than a listing portal or agent business. As they look to strengthen their position in the marketplace as “home concierge” companies, this is a perfect example as to how big real estate is thinking about the future.