“Has the mighty real estate advertising category peaked out for online media?” That’s the question being asked by US research company Borrell Associates in light of their 2010 Real Estate Outlook report.
The report, which describes major trends in spending by agents, brokers, apartment owners, and mortgage lenders, shows advertising spending in the real estate category was down by 20 percent in 2009, dropping from US$24.4 billion to $19.6 billion. However, Borrell Associates is forecasting a mild recovery in 2010 with 3 percent growth overall.
paidcontent.org looks deeper into the report, pointing out that Borrell Associates predicts newspaper ad spending will rise by 16 percent in 2010, after a fall of 34 percent last year.
Along with newspaper spending, real estate ad spending on broadcast TV is predicted to grow 39 percent in 2010 after a drop of 44 percent last year. At the same time, real estate ad spending on cable TV is predicted to drop 16 percent this year after a 2 percent drop in 2009.
Borrell Associates found that three out of every five dollars spent on online advertising are spent by real estate agents and brokers. Nevertheless, the company says online real estate ad spending will see a fall of 4 percent in 2010 after the 1 percent decline seen last year.
According to mediapost.com, Borrell Associates sees online real estate ad spending bottoming out in 2010, with an increase to $7.9 billion predicted in 2011 and a further climb to $8.3 billion in 2012.