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RE/MAX advises Real Estate Agencies to overhaul advertising budgetsCAPE TOWN (August 08) - As a serious cost saving measure real estate principals are being advised to ruthlessly overhaul their advertising strategies, by one of the industry's marketing experts.
Jeanne van Jaarsveldt, finance and marketing director of RE/MAX of Southern Africa, holds the view that more than 30 percent of the industry's advertising of property often fails in its universal appeal and falls short in delivering buyer useful information. He also believes some are blatantly dishonest in content and consequently a major cause in degrading the integrity of the profession.
Emphasising that he was not advocating reducing advertising, which he believes is the lifeline of the industry and even more important in the current property cycle, Van Jaarsveldt says agents should try to understand the basic economics of advertising, particularly in targeting and monitoring their rates of success or failure.
"Budgeting should also be specifically geared to the current market, for instance in promoting well priced homes rather than those overpriced, which happens too frequently in direct response to the agent promising the seller exposure in return for a sole selling mandate."
Van Jaarsveldt puts forward a strong case not to reduce advertising in the tightening market conditions by pointing out that RE/MAX's maintenance of its high profile print and electronic advertising during the recent Super 14 series, Wimbledon and now the Tri-Nations had proven a mainstay in maintaining good business levels with a first quarter drop in sales volume of 5,2 percent versus the industry's reported decline of 20 to 40 percent. Further worth of its market elevation came from excellent sales staff recruitment figures and franchise inquiries, which have resulted in 311 agents joining RE/MAX and an aggressive focus on expanding the companies national footprint with 16 new offices opened so far this year.
He strongly believed, in support of US studies by research groups, that companies, who maintained or increased their advertising during a market downturn, or as the market moved into an upswing, ultimately recorded better sales ratios than those companies that slashed their advertising expenditure.
However, the effectiveness of all advertising should be carefully monitored and assessed on a monthly basis if full control was to be exercised over the budget. << Back to news section
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