As you’ve probably already noticed, online advertising ain’t what it used to be.
Let’s get right to the point: When it comes to online advertising, Facebook is winning! Anyone who’s anyone is on Facebook- and they’re on Facebook all the time.
You, yourself, probably spent more than 27 hours on Facebook just last month! Yeah, Business Insider’s calling you out!
And, with all of these people frequenting Facebook, you can use it to your advantage and sell almost anything - even expensive homes.
Realtors running Facebook ads to sell houses should be nothing new at this point, but only 9% of real estate agents actually promote their listings on social media! There’s a reason why you keep hearing about it- Facebook has the best targeting for ads out of any platform ever invented. Yeah, you read that right, EVER!
That’s a pretty big deal. It means you can use it to drive the right people to any type of property with a little planning and smart thinking.
Step 1- Before you can start making Facebook ads, you’ll need a few places to send people.
First, you’ll need a landing page: a place you can send someone that is free of distractions. Since we want to use Facebook to help us sell a specific house in this example, we need to point people to an individual listing.
Preferably, you’ll want to send them to your website or a platform optimized for lead generation (completely distraction free + call-to-action), but for demonstration purposes let's send them here:
Second, you should also consider running a native video ad for the property with your contact info and no landing page to distract, you want both options.
Here is an example for the same property, click the little facebook icon to see the full ad:
Step 2- Think about ad targeting as a real person.
Thinking like a real person is THE KEY to successful Facebook advertising. Think about the listing and who would be most likely to buy it.
The listing in our example is a bit tricky- it’s a $2.6M dollar house in the middle of the desert. BUT its saving grace is that it’s next to at least 3 important private golf courses in North Scottsdale. A perfect feature for effective targeting.
Basic framework to think about targeting:
Think about “most of the people,” not the exact people. This way you’ll naturally hit a larger, better audience and won’t waste money targeting for those “few special cases,” like the 10 executives a year who happen to move from NYC and are passionate about golf.
- “Most people” do not move very far away. Most people tend to upgrade or downgrade in their area (STAT: 58% of the Americans who move, move within the same city or region).
- “Most people” buy something they are qualified to pay for.
- “Most people” like to shop around in the area close to them.
- “Most people” who live next to a property, know people who the property would be a good fit for.
So, how would you target for this particular listing? Well, you’re going to have to make some assumptions!
Think like a golfer!
If it were me, I would target people geographically located within 15mi of the property and over the age of 30,
who are interested in:
- Troon North Golf Club
- Scottsdale National Golf Club
- The Estancia Club
- Troon Golf Club
Wait- but- you happen to know that lot’s of Canadians buy these homes as winter escapes, so why would you only want to target people that live close buy?
- People near this house may already like golf and already live in million dollar homes. This means they can get qualified for a jumbo loan or maybe they already have cash. Simple enough.
- It’s hard to target “Canada!” Canada is a pretty big place. Instead, it’s going to be easier to hit people from Canada already living in the neighborhood, who might just send it to friends back home.
Sure, you could get a lot fancier with Facebook ads, but after lots of practice, that is where I personally would draw the line.
Try experimenting with a few ads in your area and let us know what you find out!
Step 3- Program your ad and pay for it.
Since many of you already know how to create an ad, I’ll just leave a link from Facebook as a refresher:
A big question about Facebook ads- how much do they really cost? That’s a hard question to answer, even with great targeting. A good rule of thumb when it comes to advertising- be prepared to spend at least 25% of your commission on advertising.
Assuming you’re getting a full commission (adjust this for your real number) This is how you break down your “I’m prepared to spend “$” to sell this house.”
- 3% of 2.66M is $79,500
- 25% $79,500 of that is $19,875
Yeah, I know, this is insane. It’s also lot of ads!!!
In full disclosure, I have yet to meet a realtor that follows these monetary rules for Facebook ads. However, if you spend ~$20k on Facebook ads for one house, chances are you will sell it…
That said, Facebook is still very cheap as a form of advertising, so you are probably better off starting with something smaller, say $250, and measuring your results ad by ad.
Rinse, adjust and repeat until you start to see results.
Step 4- Monitor if your ad is working.
Check stats from your website or landing page reporting. Pay attention to see if you get more phone calls and emails out of the blue. Run an open house and run a similar ad beforehand to see if more people show up.
This is what has worked for us as we developed PropertySimple, an AI assisted ad platform for social media 100% designed for the real estate industry. We have run thousands of ads and this is the thinking that has taken us farthest so far!
Have any strategies or tips for Facebook advertising that work for you? We’d love to hear about them in our facebook group: Future of Real Estate!
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