Primary marketGrowing Business Through TV Advertising
Real-estate agents and brokers traditionally build business through a combination of referrals, direct mail, and newspaper and billboard advertising. Because of the cost of producing and placing effective ads, television -- the most influential advertising medium in history -- is generally avoided by real-estate professionals. Avoided, that is, until the recent fundamental shift in delivery technology and viewing patterns.
The growth of special interest stations like The Golf Channel, The Travel Channel, ESPN, The History Channel, and the 24 hour news stations, CNN, MSNBC, and Fox News, plus the growing demand for high-speed internet access, has transformed cable TV from bit player to entertainment and communications star. Figure 1 indicates the relative household viewership of broadcast TV and cable TV over time.
Figure 1
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Not only has cable television"s share of viewers grown, but cable programming now enters the most affluent households, as Figure 2 indicates.
Figure 2
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The growing share of viewers is opening up business growth opportunities for real-estate agents and brokers. Here is why:
Special interest programming helps to target key customers;
Digital technology allows the cable companies to focus advertising on geographic zones served by local businesses;
Cable offers the impact of television at a fraction of the cost of broadcast TV advertising.
Creativity And Time
When an agent or broker talks to a cable TV sales representative, he or she will likely find this person knowledgeable about demographics and ways to stretch placement dollars most effectively. Working with a local cable TV salesman, one of our clients who provides services to home owners in a suburb of Denver developed a three month cable television advertising campaign. During those three months, the firm aired a library of four syndicated ads 900 times on 10 cable television stations, including Home and Garden, Food TV, Lifetime, The Weather Channel, The Learning Channel, Discovery, Fox Sports Rocky Mountain, CNN, Fox News, and The History Channel. The ads reached 29,000 households with cable in the firm"s sales area. The total cost for this campaign, including syndicated ads and placement was $7,000 -- less than $8 a placement.
Buying the time and selecting the best stations and programs to advertise on is only half of the advertising equation, however. The other half involves the time, energy, creativity, and cost to develop the ads. Regardless of whether an agent or broker competes with large national firms or local ones, the ads must be high quality in order to achieve the desired credibility.
Agents should spend time watching local ads on cable TV to determine what makes some ads on these stations memorable and others lackluster. The time spent will help guide the creative process. Effective ads should have a positive impact and a polished professional look that enhances the credibility of the agent or broker.
Producing The Ads
In terms of cost and time, a library of professionally scripted and produced syndicated ads will be at the low end of expense for the agent or broker and at the high end of production value and professionalism. Syndicated ads cost many thousands of dollars to produce. The syndication company recoups its investment by leasing the library on an exclusive basis per viewing zone. Syndicated ads are created to be easily customizable for the agent and broker.
Ads produced by in-house facilities at the cable company will be lower or equivalent in cost to the syndicated ads. Low price can sometimes negatively impact the overall look and feel of these ads. Ask to view a portfolio before agreeing to have the cable company produce an ad. Next on the cost continuum is working with local advertising agencies and small production houses. Ads from these providers can range from $1,000 to $100,000. View their portfolios as well. Factor in the time it will take to work with the creative team at the cable company, advertising agency, or production house from start to finish. Syndicated ads are already produced and therefore require the least time involvement.
Evaluating The Effectiveness Of The Ad Campaign
Unlike a direct mail campaign in which a business sends out X number of mailers and receives Y number of calls or when a Sunday classified newspaper ad nets a specific number of visitors to an open house, the effectiveness of television advertising for realtors is more challenging due to the number of factors involved. For example, Television for the most part is cumulative over time. A service company such as a real-estate firm creates name recognition and credibility by advertising on TV. This is a branding strategy. Impactful ads can raise the kind of name recognition that is critically important when the consumer goes to the yellow pages prior to calling a realtor. If a positive name association with a specific firm is "top of mind," then TV advertising has done its job.
Another approach to TV advertising uses a "call-to-action" message in the commercial. Typically these TV spots have a time limited offer that creates a sense of urgency in the minds of consumers. Realtors who want to generate leads rely on the call-to-action strategy. Many businesses use a mix of branding and call to action commercials throughout the year.
In either the branding or call-to-action case, a good strategy is to air an initial group of ads heavily for a few months and then gauge feedback. In talking with homeowners and prospects, find out what they liked or did not like about the ads and which stations are mentioned most frequently. Tailor placements accordingly.
Vary the frequency of placements throughout the year with increased activity prior to and during the early phases of the peak home buying/listing periods and lower frequency during slow seasons. The agent or broker also should keep the message fresh and attention getting. Run different branding and call to action ads so that viewers continue to pay attention. This is where a library of syndicated ads can help lower cost. The agent or broker does not have to continue to produce new ads -- a customizable library is there to choose from. Tie cable TV advertisements in with direct mail, giveaways, building and vehicle signage, billboards, and print advertising to create a cohesive whole.
Advertising on cable TV can be a vital addition to the marketing mix of referral, direct mail, and newspaper advertising. The agent or broker focused on long-term growth would do well to investigate this advertising opportunity.
Redtown Productions is an innovator in cost-effective advertising campaigns for growing regional and local businesses. For more information on ads for real-estate agents and brokers please visit www.agentadz.com. Bill Hansen welcomes your comments and questions. He can be reached at bill.hansen@redtownproductions.com.