Analysing marketing in the real estate industry
The real estate market is one of the oldest, and to many, one of the most settled and predictable. Buying a house is often viewed as one of life’s most important decisions and a safe investment. But this is changing as the market evolves. In the future, buyers will have to consider a complex set of factors to make sure they make the right investment.
This is a key finding within our in-depth analysis of the sector covering what’s happening, who’s capitalising and what they are using. The research provides crucial insight for any industry marketer, investor, or entrepreneur.
Market understanding
Three trends stand out as having a major impact on the way we live and work as a society, both now and in the future. They also provide a basis from which to evaluate the impact of the pandemic and its impact on global cities in the coming years.
The first of these is the development of smart cities. Their growth has been facilitated by the Internet of Things, as well as a greater requirement for sustainability and urban planning. Furthermore, smart cities are being fuelled by a second trend: modern methods of construction. With a shift in city dwelling happening across the globe, cities are responding by reducing emissions and energy consumption. This challenge has been heightened by the use of mass-produced construction materials, whose creation is responsible for mass emissions.
Additionally, we must take into account the final trend to get a full picture. Major demographic shifts are happening amidst a steeply growing global population. Surprisingly, these may also lead to a decrease in population in some developed cities in the coming years.
Marketing Strategy
Aware of these trends, house builders are thriving. They have come to the aid of first-time buyers, reflected in higher transaction levels amongst this group and higher sales prices. This has driven sector growth, as shown by our analysis of three major players. All three have delivered very healthy profits in recent years. However, their marketing budgets as a percentage of revenue are amongst the lowest of any sector. It is therefore not a surprise to see them pursue relatively conservative growth strategies.
Amidst this, disruptors are establishing themselves in niche areas to support the overall house buying ecosystem. We’ve investigated three that have raised significant investment over the last few years. They may well become influential in revolutionising real estate, yet their growth has been hampered significantly as a result of the pandemic. This has increased due to the unique nature in which people search for and purchase properties online. The disruptive nature of sites such as Zoopla and Rightmove has made them the centre of attention, and the de facto starting point for property research.
Marketing activation
A clear consequence of their meagre budgets, major players hire relatively small marketing teams. Furthermore, this conservatism can be seen in the tech stacks they employ and the website traffic they generate. Around 90% of their website traffic comes from direct searches, highlighting the strength of their reputations beyond their digital presence. That said, some are making efforts to change this by highlighting and addressing key consumer pain points.
In addition, the major players use agencies sparingly, and usually, to bring in expertise not available in-house. These activities have resulted in a number of interesting and thought-provoking campaigns aimed at changing consumer perceptions of them and the industry.
By contrast, the disruptors we’ve covered are more innovative in their efforts, yet their small teams and relatively meagre marketing budgets mean they are yet to generate significant and sustained website traffic. In an effort to address this, they use agencies more creatively to execute ideas that help them to cut through the increasing noise online.
This research includes
15 pages of analysis (4,000 words).
Evidence-based approach.
Case study examples and success stories.
Main tools/services/agencies.
References for additional reading.
Published November 2020.