What is PPC Advertising and Why Should Real Estate Agents Use it?
According to the National Association of Realtors® 2019 Profile of Home Buyers and Sellers, 44% of all homebuyer’s first step in the home buying process was to look online for properties. With this information, we know that the potential leads are online looking for their dream home.
Additionally, 89% of all homebuyers use an agent or broker. While there is an ultimate source of potential leads, real estate agents must create their brand in a bustling marketplace. Brand awareness begins with finding a way to outshine competitors, establish credibility, and consistently have an open line of communication with potential customers. It’s really about getting your name out there and persuading clients to call or come to the office.
Standing out means getting your name out there and persuading clients to call or show up to the office.
As a newbie real estate agent or a veteran looking to expand, establishing an online presence is essential to conquering real estate marketing. With multiple avenues to pursue, one of the most lucrative methods is PPC advertising.
In this article, we will look at what is PPC Advertising and why it is an avenue for real estate agents to capture leads.
So what exactly is PPC advertising?
Pay-per-click marketing is a form of a paid digital advertising model. They are also known as CPC, cost per click. Essentially you pay every time a potential lead clicks your ad. Various platforms such as Google search engine and social media platforms like Facebook and Instagram offer PPC advertising options.
PPC marketing campaigns put your ad in on top of search results of where your future clients are already searching.
An essential part of a successful PPC marketing ad is creating a highly-optimized keyword list that captures what your potential client is searching for at each step of the buying cycle. For example, you could target “Toronto Real Estate” or “Toronto Condos For Sale.” You set a predetermined daily max and per click budget for those keywords.
When someone clicks your ad, your per click charge is deducted from your daily budget. This continues until you have maxed out your daily ad campaign budget.
All major online search and social media platforms offer their version of PPC advertising. Depending on your target audience and end goal, you can use PPC campaigns across multiple platforms to generate a variety of highly-target audience traffic.
Why is PPC Marketing Important?
If you’ve been in the real estate game for a while, you’re familiar with traditional methods of marketing real estate: House yard signs, giant billboards, and printed direct mailers, to name a few.
Modern real estate agents can use PPC marketing to grow quality traffic to their websites.To understand PPC marketing a bit better, you need to become familiar with some keywords.
5 PPC Ad Campaign Keywords to Know
Ad impression numbers represent how much of your intended audience has seen your ad. New agents and companies might consider building brand awareness. In addition to potential leads and converting sales, brand awareness is a crucial goal in the marketplace as well.
CTR (Click Through Rate)
Once you have established brand awareness, your next goal is getting clicks. Your CTR is vital to your PPC Campaigns’ success. Compelling ad copy, quality graphics, and a targeted keyword list all play an essential role in getting quality clicks. Each part of the CPC campaign works together to get the attention of your target audience. Ensure a compelling call to action or pitch in your ad copy to create engagement with your ad.
CTR Google Fact To Know: The average click-through rate for the first position on a Google search query is 19.30%, and the click-through rate for the second position is almost half at 10.57%.
CPC (Cost Per Click)
You can see if you are getting the action you want from your ad campaign, take a look at your cost per click. Much like it sounds, cost per click is the amount you pay each time someone clicks on your ad. The clicks drive traffic to a highly crafted landing page (for best results). Refine or remove the keywords that cost a lot out of your advertising budget without results.
How does your CPC compare? The average CPC for real estate search is $2.37.
One of the most important metrics to consider when reviewing your ad campaign is your conversion rate. You must create your definition for conversion. For example, a translation could be signing up for a monthly newsletter or requesting a call for more information. A low number of clicks for a specific ad (keywords) may result in a higher number of your ideal conversion action.
How does your campaign stack up? The average conversion rate in AdWords across all industries (2018) is 3.17% for search and 0.46% for display. In Real Estate, the numbers are higher at 2.47% for search and 0.80% for display.
ROI (Return on Investment)
At the end of your ad campaign, the overall response from your ad (s) culminate your ROI. It includes the amount of profit from each ad conversion. Depending on how you define your ad conversion, you can identify the most successful keywords or ads from the campaign.
So you’ve got the fundamentals of PPC ads, but now you are wondering, is this really for me? We say, Yes! Let’s look at the most beneficial parts of a PPC ad campaign.
3 Reasons Why Real Estate Agents Should Use PPC Advertising
1) Build Brand Awareness
As a real estate agent, one of the most important aspects of growing a successful career is to create meaningful connections within your community.
Google reports that search ads can boost brand awareness as much as by 80 percent. This makes potential leads more likely to remember you and interact later on.
According to the mere-exposure effect (a psychological phenomenon), people develop a preference for things merely because they are familiar with them. Giant billboards, business signs, and repeated commercials on TV are effective, not only because people decide to buy the best product, but also because it is the one they are most familiar with and have the most exposure to it.
Similarly, you may have heard of the old marketing rule of 7. It was said that a customer must have exposure to an item 7 times before purchasing it. These two concepts highlight that by only having people see your ads consistently, they are more likely to choose you.
If the potential lead doesn’t click your ad, they still have your name and ad copy. Remember learning about impressions above? Remember, impressions do not cost you. Impressions, even without clicks, increase the number of people who know your name and associate it with real estate.
With a variety of search engines and social media platforms opening the option for paid search marketing, you can meet your clients where they already are. 63% of people said they’d click on a Google ad. (Search Engine Land, 2019)
If the first click does not find the answer, they are looking for, back to search results they go. Depending upon where they are in their search, they could come to you next.
With PPC marketing campaigns, you can also choose to retarget potential leads who showed previous interest.
2) Target Audience Awareness and Optimization
Pay Per Click advertising offers strategic targeting taken to a whole new level.
PPC Campaigns can target potential leads to getting the best target audience in line with your ad campaign.
- Expressed interest in service or product
- Location-you can make you add visible to be as specific as a particular neighborhood
- Retarget anyone previously interacts with your website, social profile, or ad.
Put the right ad in front of the right people, and you win! See how we brought our client Shew Properties 500 real estate leads in a month.
Think about this:
PPC ads target potential clients leads by what they are actively searching. You can further narrow the pool by their online behaviors. Starting with an optimized pool gives you the most likely audience looking for your services. Additionally, real estate is a profitable local product, and as an agent, you offer local services. Combining intent keywords such as “homes for sale in City Name,” you can also target based on location.
You are creating a comprehensive plan that targets buyers in each stage of the buyer’s cycle. If you have information available that can assist a buyer in the first stages, you are more likely to attract and ultimately turn leads into sales.
Part of PPC marketing is knowing your audience, but there is also a discovery process that you gain from each new ad campaign you create. Each time you learn a little more about your ideal customer and the best information to provide them. You will determine if you have any content gaps so you can create a comprehensive knowledge base for future clients.
3) Increase Conversions Quickly
Once you setup your ad campaign, you will begin generating traffic and leads. PPC marketing directs traffic to your website alone.
If thoroughly planned and executed, PPC can increase conversion rates at cost unparalleled to any other general marketing strategy.
For potential leads that don’t click right away, you can retarget them using the PPC platform.
When you invest in a company that has expert teams and experience to back it up, you have the best chance to beat out competitors and land new leads every day.
During an ad campaign, you can check into your stats and see how well it’s performing. Over time, you can refine your keyword lists, types of ads, and images for a high-converting pay-per-click marketing plan. PPC is an excellent opportunity for real estate agents to grow their business and brand.
How to Improve Your ROI from PPC Marketing
To increase your return from PPC ads, lowering your cost per lead is a great place to start.
So, how can you lower the cost per lead?
The ultimate way to lower your costs is to hire PPC specialists with real estate ad campaign experience. This is because high-quality ads, campaign optimization, optimized keyword targeting, and long term ad campaign investment ensure you the most success.
Once you have potential leads to your site, the next most powerful way to convert is with a professional landing page. When clients pop in to see who you are and what you are about, you want to put the best foot forward. A clean navigation menu, bright listings, and informative blog content will keep them exploring on your page.
So they’ve clicked your ad, loved your website, and sent a request for information on some properties. To increase your conversion rates at this step is to focus on responsiveness and customer service.
3 Key Responsive Actions to Turn Leads into Sales
1) Fast Response Time
Contact leads within 5 minutes of requesting information. You can set up automated responses acknowledging the information request and estimate the time frame they can expect to hear back from you.
2) Follow Up
Once information is requested, you have a warm lead. They have shown interest, and this is where staying persistently available can make a conversation difference. As a nod to the old marketing rule of 7, we talked about previously in this article, make sure you reach out at least seven times.
3) Campaign Feedback
If you decide to work with PPC specialists, don’t forget to communicate what is working best for you. Note which campaigns are turning the most leads into conversions.
Eager to increase your leads and closes this year? Read more about How to Generate Real Estate Leads with Facebook and Instagram Ads in 2020.
If you’re a real estate agent or broker who is ready to invest in growing to the next level, contact one of our marketing professionals today.