The internet changed in 2013. It went from desktop to mobile. And with this change, marketing went through a paradigm shift from intention based marketing to push a target marketing.
This paradigm shift has far reaching implications for real estate agents. We're here to help you understand this shift and how it affects your marketing spend.
What is Intention Based Marketing?
According to Wikipedia, intention based marketing is as follows:
Intent marketing is about marketing a product or a service based on consumers' intent to adopt, purchase or consume that particular service which may have been either explicitly or implicitly conveyed by the subscriber.
Marketing to consumers' intent is expected to produce better ROI because of the absence of need to create awareness about a product or service in the consumer’s mind before promoting it. Consumers' intent for consuming a product or service may either be predicted based on behavioral data or captured explicitly when the subscriber tries to purchase a product and the transaction has been aborted for some reason
Real estate has been intention based for a long time. In the 20th century, real estate agents would advertise in newspaper classifieds and buyers with the intention of purchasing a house would look in the classifieds and decide to contact the agent.
In the 2000s, real estate moved to the internet, but it was still intention based. Services like Google ads, Zillow, Realtor.com and others allowed agents to target potential buyers who searched for properties, demonstrating their intent even more clearly.
Intention based marketing has worked really well for agents and it still can provide some return on investment. But in 2013, the paradigm shifted from intention based marketing to push and targeted marketing.
Why did advertising shift from Intention to Push and Target?
In 2013, the internet moved from desktop based to mobile based. And people only spend 10% of their time on their phone inside browsers. They spend the rest of their time inside apps, where they can't search for things. People don't show their intent nearly as much on mobile as they do on desktop.
What is Push and Target Marketing and How Does it Work?
Push and target marketing came from new tools created by social media companies like Facebook, Twitter, LinkedIn and Instagram that sought to remedy the situation by offering real estate agents tools that allowed them to target potential buyers, rather than waiting for them to demonstrate intent.
For example, if we know that likely buyers of a certain property will come from a geographic area of 10 mile radius from the property, from a person earning at least $50,000 and less than $80,000 and they'll need a credit score of at least 650, social media companies allow agents to send their property directly into the social media feeds of people who meet that criteria.
These targeted potential buyers see advertising that is pushed out to them and hits them inside of the apps that they use every day. Buyers don't have to demonstrate intent because the ads have targeted the correct audience and pushed the message to where they are today, not where they were 5 years ago.
Examples of Push and Target Marketing
A real estate agent in California wanted to target tech workers in the fast growing markets of Venice and Santa Monica. He knew that young, potential buyers would work at specific internet technology companies. So he targeted his new listings to people aged 25-35, who made more than $100,000 and worked at one of six fast growing tech companies.
A real estate agent in Arizona had a rural property that she thought would sell to preppers, people who like to prepare for potential problems with the electric grid and other potential problems. She targeted all people who were interested in prepping within a 50 mile radius of the property.
An Arizona real estate agent had a property on a golf course that he wanted to sell. He targeted people within a 10 mile radius of the property who were interested in the country club, the golf course and golf in general.
The combinations are limitless. You can take advantage of this paradigm shift by creating your own landing pages and social media ads, or you can use tools like PropertySimple to help you do it. If you'd like to learn more, please drop us a line and we'd be happy to help you out!