8-15-2012
That prediction comes from a very extensive real estate study just released by Borrell and Associates Executive Vice President Kip Cassino. In the study, Cassino projects the combined real estate-related ad spending category will increase from $23.7 billion in 2012 to $26.6 billion in 2017 -- a jump of over 12 percent. If Cassino's predictions are correct, the total radio share of advertising in this category will drop from 2.1 percent to 1.6 percent. Cassino predicts newspaper will increase its share from 14.1 percent to 15.7 percent and online will retain the biggest share at 54.4 percent. The combined real estate category includes; real estate developers, mortgage providers, rental property management, and realty agents and brokers (see the breakdown below).
The Real Estate category, once owned by the newspaper industry, has really moved online. In 2012, it will spend $13 billion online, an increase of 15.2 percent over 2011, according to Borrell. It accounts for 55 percent of all real estate ad budgets while newspapers have dropped to second, a distant 14 percent. Real Estate is now the number one online business category. As a result of the move online, radio does not fair too well either. However, radio sales managers and salespeople could look at this as a positive, knowing the money is there. It's just a question of how to go get it. What should you be focusing on to bring in a piece of that huge pile of money? (See next story.)
Breaking down the Borrell study numbers even further:
In the Real Estate Developer category, which is projected to increase 3.1 percent over the next five years, spending on the radio will decline 60 percent. Mortgage providers are projected to increase spending by 4.3 percent, and Borrell predicts radio spending will decrease 4.7 percent. In the Rental Property Management category, Borrell projects spending to increase by 103.5 percent and spending on radio in that category to decrease 52.5 percent. And finally, in the Realty Agent and Broker category, Borrell projects an increase in spending in that category of 2.6 percent over the next five years, with radio spending declining 57.1 percent.
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