The Shrinking Local Advertising Dollar
The masses are quite aware that print newspapers are dying (Does the Seattle P-I going 100% Web Signal the End of Newspapers). Fewer realize that radio stations (The Death of Radio Advertising) and TV stations (The Death of Local TV Stations) are also downsizing dramatically with the decimation of advertising revenues. In particular, it's the local advertising dollar that is not getting spent on newspapers, TV and radio (Kelsey Group Perspective on Local Advertising from Viral Housing Fix - "the Outlook is Grim")
What newspapers, TV and radio have in common is their dependence upon the old Madison Avenue "advertising as branding machine" model. From Sandy Weaver Carmen - Death of Radio Advertising:
Returns on investment on this old branding model are now being questioned. For the real estate professional, the traditional Sunday print ad is becoming extinct (TV and radio were too expensive an option anyway), so it seems we're now at or past the inflection point where online advertising, or even the "free" social media is replacing traditional advertising.Internet advertising is instant gratification for the person buying and the person selling. In the short time it takes to click through from one site to another, a buying decision can be made and the seller has their money.
Radio advertising has never been about instant gratification. Repeated airing of a commercial is needed before the listener really gains focus and awareness of the advertisers, and then they still have to physically travel somewhere
The newspaper companies have been their own worst enemy....For REALTORS they overcharge for listing and open house ads that nobody reads......More and more consumers are beginning to see the benefit of "non print" marketing.
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I agree that these traditional media outlets haven't adjusted to the reality of the web and instant gratification. That said, before the eulogy starts for radio, television and newspaper advertising, I believe that they still have an opportunity to adjust pricing and work towards performance based models. I have discussions with several newspapers about performance based solutions. None were ready to pursue.
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I think TV really works best for branding. And for the average real estate that is not super important.
With more people watching tv online I think also the major networks will lose power to all the smaller cabel channels and purely online shows.
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While TV, Radio, and the web may target the same audience, the Internet is the only place where you can build perpetual equity in a brand or message.
I heard a crazy thing the other day - a lot of former LOs and agents in Vegas are selling ads for the yellow pages now. I wonder what that is all about.
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