I can hardly believe what I read this morning in Inman News.
Century 21 announces that they are spending real money on TV ads. You must be kidding me. Tell me this isn't true! What do they think they will accomplish with this ad spend anyway?
They say the campaign is intended to to announce to consumers that C-21 agents are now well trained. "We think the market knows exactly who Century 21 is, but we're not sure they know who our agent is, and what their capabilities are," said Bev Thorne.
Really. What were the C-21 agents before the ad campaign? Untrained?
And are you sure you are able to make the claim that ALL of the C-21 agents have been fully trained at this time? Do you really think anyone would believe such a thing in real estate?
They also say that all of the media spend will be measured carefully, ""We will track closely the (return on investment) from all our spend . . . " Thorne further stated.
Really. How do you closely measure the leads that come from a 30 second TV ad?
Century 21 is also very proud to announce that the campaign will run on this year's Super Bowl. Really. I can recall running a real estate franchise ad on the Super Bowl as well.
It was in 1992 when I served as the head of marketing for a major franchise company. I later called the entire experience and return, "gone in 30 seconds". To be specific, a total wasted investment back then of $1.2MM for a 30 second TV spot on the Super Bowl. Today? More than double that figure.
I thought then - how many viewers are missing the 30 second we just bought after the coin toss as they went to the kitchen to refresh their beer and use the "room down the hall to the left"?
You know the crazy thing about all this is that it is the C-21 brokers that are the ones who are paying for these TV ads, not Century 21. I wonder what the brokers really think of such waste in times when just keeping the doors to the brokerage company open is a real challenge.
And what is the message being sent for what now is likely to be a $2.5MM investment (ad placement plus ad production costs for a 30 second spot) on a Super Bowl ad? Work with Century 21 agents to buy and sell homes because they're educated?
I wonder how much advertising could be purchased on an online media site for the same money targeted more appropriately at selling C-21 listings? You know, the kind of efforts that help generate revenues for local brokers by exposing listings - the product - to real buyers online.
This versus advertising the C-21 brand to do what is very obvious - to simply sell more C-21 franchises.
Reading further into the Inman article I noted that a group of the Century 21 brokers have already weighed-in with some kind of class action complaint about the company. What a shame. What a lost opportunity.
And what an unfortunate sign of the times for traditional real estate franchising business models.
As it relates to Century 21's former CEO, Tom Kunz's decision to pull the plug on TV ads in 2009. You were so right on my friend. Maybe, just maybe your wisdom to make such a decision had something to do with the fact that you were a real broker with a real brokerage company that understood what it takes to keep the doors open in tough economic times.
My opinion. Spending precious ad dollars that are collected by a franchise from its brokers on "hyper-macro" TV advertising just in time for everything meaningful in the business to be hyper-local - makes no sense at all.
At the rate of nearly $90,000 per second for the Supper Bowl ad I wish C-21 a lot of luck demonstrating that this strategy was anything more than simply another $2.5MM spent on TV advertising by a real estate franchise that is - gone in 30 seconds.
Wednesday, March 30, 2011
Thursday, March 24, 2011
Now You See It - No You Don't
OK here we go.
What do listings, consumers and Google all have in common? I hope you guessed it - the answer is search.
As it relates to doing business with at least 90% of all consumers searching for real estate, the key to doing business is ONLY about search. Today search is everything in real estate.
Period.
Consumers and especially real estate buyers don't care about brand, company or even the agent - they are searching for the home that meets their needs and requirements - and in real estate that means being able to search for one product - listings.
So here comes the zinger.
A quick inspection of the majority of all franchise, broker and agent real estate sites reveals vastly over cluttered offerings containing everything but lacking an effective means to direct consumers to the listing they are searching for on the site. Now I know what you are saying - that isn't true I have search on my site - but it is true. The problem relates to the degree of search that consumers want and can't experience on the majority of the industry's real estate sites but CAN get now on Google.
How do I define "effective search"? In one word, Google.
The vast majority of all real estate searches begin on Google and then Bing and Yahoo follow. Google is without doubt the largest real estate web site in the world. Number two? YouTube. Google directs consumers to other relevant places to find the details related to what the consumer is searching for on Google.
If you think I am wrong and you believe that your search functionality is truly as effective as Google try this two step exercise.
First, pick a listing contained in the listing database on your site and type in the same address into the Google search bar on the Google site. Ideally, pick one of your own listings. Now see where the Google search results direct you to find that listing. If the listings on your site do not appear on the first page of Google's search results - you lose big time.
And the winners are? Those that do because they are seen as more relevant to Google and because they have optimized their web sites, listing content and search index to be ranked higher in Google's organic search results.
Second, go to Google and type in a typical consumer search query made on Google for a home search. Type in your city name, your state, 3 bedroom, 2 bath with a hot tub. Now take note the search results. A whole list of listings that match that search criteria and links to places to find out more details. Then type the same search criteria into your site and note the search results - you are lucky if you can get past the error messages and the common no listings matching your search criteria can be found messages.
Tilt.
The problem with the majority of the current brokerage industry sites is that the content on the site is irrelevant in big search - at the Google, Bing and Yahoo level where everything begins. Listings on your site are not recognized or seen in big search as the source for the listings therefore you don't get the consumer traffic directed to your site.
Why is this?
Among other very key technology issues a good part of the answer is why Google doesn't need to prompt consumers by ghosting into the search box the directions of type in "address, city, state, zip or MLS number". Search is not limited by anything and using more words to define your search is the consumer's prefered means to secure a higher quality search result. But not on real estate sites!
So now for the waste.
Beyond the loss of search directed buyer business for those who are fortunate enough to have salable listings these days - my calculations currently estimate that more than $175 million per year is now being wasted on outdated, ineffective search functionality framed on templated franchise, broker and agent brochure web sites.
Time to reFresh the industry's local search strategies, its user expereinces and most of all its web site vendors? I think so. In fact way past that time. You decide. Better yet, do something about it.
Now you see it = huge opportunity in search. No you don't = the current total lack of a quality search experience on most a franchise, broker and agent real estate domains.
More later.
P. S. Try the second search effectiveness test above on the newly announced and revamped http://www.c21.com/ site. Oops, Houston we have a problem - errors!
What do listings, consumers and Google all have in common? I hope you guessed it - the answer is search.
As it relates to doing business with at least 90% of all consumers searching for real estate, the key to doing business is ONLY about search. Today search is everything in real estate.
Period.
Consumers and especially real estate buyers don't care about brand, company or even the agent - they are searching for the home that meets their needs and requirements - and in real estate that means being able to search for one product - listings.
So here comes the zinger.
A quick inspection of the majority of all franchise, broker and agent real estate sites reveals vastly over cluttered offerings containing everything but lacking an effective means to direct consumers to the listing they are searching for on the site. Now I know what you are saying - that isn't true I have search on my site - but it is true. The problem relates to the degree of search that consumers want and can't experience on the majority of the industry's real estate sites but CAN get now on Google.
How do I define "effective search"? In one word, Google.
The vast majority of all real estate searches begin on Google and then Bing and Yahoo follow. Google is without doubt the largest real estate web site in the world. Number two? YouTube. Google directs consumers to other relevant places to find the details related to what the consumer is searching for on Google.
If you think I am wrong and you believe that your search functionality is truly as effective as Google try this two step exercise.
First, pick a listing contained in the listing database on your site and type in the same address into the Google search bar on the Google site. Ideally, pick one of your own listings. Now see where the Google search results direct you to find that listing. If the listings on your site do not appear on the first page of Google's search results - you lose big time.
And the winners are? Those that do because they are seen as more relevant to Google and because they have optimized their web sites, listing content and search index to be ranked higher in Google's organic search results.
Second, go to Google and type in a typical consumer search query made on Google for a home search. Type in your city name, your state, 3 bedroom, 2 bath with a hot tub. Now take note the search results. A whole list of listings that match that search criteria and links to places to find out more details. Then type the same search criteria into your site and note the search results - you are lucky if you can get past the error messages and the common no listings matching your search criteria can be found messages.
Tilt.
The problem with the majority of the current brokerage industry sites is that the content on the site is irrelevant in big search - at the Google, Bing and Yahoo level where everything begins. Listings on your site are not recognized or seen in big search as the source for the listings therefore you don't get the consumer traffic directed to your site.
Why is this?
Among other very key technology issues a good part of the answer is why Google doesn't need to prompt consumers by ghosting into the search box the directions of type in "address, city, state, zip or MLS number". Search is not limited by anything and using more words to define your search is the consumer's prefered means to secure a higher quality search result. But not on real estate sites!
So now for the waste.
Beyond the loss of search directed buyer business for those who are fortunate enough to have salable listings these days - my calculations currently estimate that more than $175 million per year is now being wasted on outdated, ineffective search functionality framed on templated franchise, broker and agent brochure web sites.
Time to reFresh the industry's local search strategies, its user expereinces and most of all its web site vendors? I think so. In fact way past that time. You decide. Better yet, do something about it.
Now you see it = huge opportunity in search. No you don't = the current total lack of a quality search experience on most a franchise, broker and agent real estate domains.
More later.
P. S. Try the second search effectiveness test above on the newly announced and revamped http://www.c21.com/ site. Oops, Houston we have a problem - errors!
Wednesday, March 23, 2011
When Enough is Enough
So here we go again. The NAR announces yesterday that they intend to raise the annual dues by $40.00 per year. This time it is said to be intended for "political advocacy at the local, state and national level."
I say bull.
The real question is what is the NAR doing with the current $200 million plus in dues they collected this year. After redirecting these dues to RPR, TV ad campaigns and further support of REALTOR.com aren't there enough dollars left to politic?
The problem is that $40.00 doesn't seem like much to each of over one million members. Just go ahead and blindly pay it, after all, if you aren't a REALTOR in this business you . . uh . . .well . . .what are you anyway? The answer is you are the same - just as qualified to list and sell homes - just as good as you would be with or without being a REALTOR and that "R" button plastered on everything - that's what you really are.
Think about it folks. How many listings and sales would you lose each year if you weren't a REALTOR? How many consumers have demanded recently to see your REALTOR ID before they agree to do business with you? My bet - zero, zip, not one.
These days being a REALTOR is the same as what Kleenex is to facial tissue, as Xerox is to copies and as QTIPS are to ear cleaners - and nothing more. You are a REALTOR by default, no need to pay any dues for that tag.
I don't know about you but I am always very suspicious of lots of stuff packed into one offering. You know, the black box that does all and satisfies everything - with great mystery. That my friends is essentially what you get for your NAR dues and that is what you really don't need in this economy to be in real estate.
In times when big government is shrinking at the demand of the American voter it just might be time to weigh-in as an NAR member and say hell no this proposed dues increase. Wake-up NAR, it's time to shirnk down - to go back to being a professional organization and way past the time to get out of the online, data selling and advertising business of residential real estate brokerage.
Remove from the annual dues the deflection of $40 million to the for-profit RPR, the $30 million spent for worthless spending on a TV advertising campaign and distribute your shares in Move, Inc. to the members and maybe we can begin at that time to discuss your purpose as a true professional organization in 2012 and 2013 and beyond.
As it relates to your increased dues NAR, and your wasteful spending and your expensive for-profit ventures - enough really is enough.
I say bull.
The real question is what is the NAR doing with the current $200 million plus in dues they collected this year. After redirecting these dues to RPR, TV ad campaigns and further support of REALTOR.com aren't there enough dollars left to politic?
The problem is that $40.00 doesn't seem like much to each of over one million members. Just go ahead and blindly pay it, after all, if you aren't a REALTOR in this business you . . uh . . .well . . .what are you anyway? The answer is you are the same - just as qualified to list and sell homes - just as good as you would be with or without being a REALTOR and that "R" button plastered on everything - that's what you really are.
Think about it folks. How many listings and sales would you lose each year if you weren't a REALTOR? How many consumers have demanded recently to see your REALTOR ID before they agree to do business with you? My bet - zero, zip, not one.
These days being a REALTOR is the same as what Kleenex is to facial tissue, as Xerox is to copies and as QTIPS are to ear cleaners - and nothing more. You are a REALTOR by default, no need to pay any dues for that tag.
I don't know about you but I am always very suspicious of lots of stuff packed into one offering. You know, the black box that does all and satisfies everything - with great mystery. That my friends is essentially what you get for your NAR dues and that is what you really don't need in this economy to be in real estate.
In times when big government is shrinking at the demand of the American voter it just might be time to weigh-in as an NAR member and say hell no this proposed dues increase. Wake-up NAR, it's time to shirnk down - to go back to being a professional organization and way past the time to get out of the online, data selling and advertising business of residential real estate brokerage.
Remove from the annual dues the deflection of $40 million to the for-profit RPR, the $30 million spent for worthless spending on a TV advertising campaign and distribute your shares in Move, Inc. to the members and maybe we can begin at that time to discuss your purpose as a true professional organization in 2012 and 2013 and beyond.
As it relates to your increased dues NAR, and your wasteful spending and your expensive for-profit ventures - enough really is enough.
Thursday, March 17, 2011
A Matter of Time
An interesting – yet predicable evolution.
No, not related to St Patrick’s Day – related to online media distribution.
An important announcement was made by the New York Times today. Something called "digital subscriptions" - paid access to digital content are happening now. What was once free now requires a subscription to see.
http://www.nytimes.com/content/help/account/purchases/subscriptions-and-purchases.html
An important announcement was made by the New York Times today. Something called "digital subscriptions" - paid access to digital content are happening now. What was once free now requires a subscription to see.
http://www.nytimes.com/content/help/account/purchases/subscriptions-and-purchases.html
I guess no matter what the type of media – the fact is that free only lasts for a certain limited amount of time. Say hello to digital subscriptions. The only real difference? The word digital.
Even the shift from paper to online has its free limits. Take this New York Times example. Consumers will all end-up paying soon – once they have been hooked online - and that is very, very good news for the media companies. Why? The profit margins for delivering digital content online v. paper bundled and delivered in a truck are incomparable and truly extraordinary.
Finally an end to the age of dying newspapers that for more as long as I can remember had content and an ineffective means to distribute it. Hope is on the horizon for these media companies – paid subscriptions are back.
As we enter the age of paid digital media think back to what we thought would always be free just because it was online, public and accessible. The ultimate thought was that the eventual price for the same content delivered via a different type of media would be less. And as for that dream – once again - dream on.
Funny how is it that things that go around – come right back around again.
Happy St. Patrick’s Day to you and crying in your beer over all of this media stuff is not permitted.
Thursday, March 3, 2011
Apples and oranges
A few days ago the new iPad2 was announced.
Lighter, faster, more was the theme but the theme was not a new one for Apple or its founder and CEO, Steve Jobs.
In the face of serious global competition the guy just keeps on going and never looks back. Despite noticeable health issues, Jobs is driven to constantly be better and to never stop, to go even when faced with the threat of new products from others trying to catch him.
I attended a program last night here in Orange County. The speaker was Seth Godin. The center of his talk was based around one question.
"When was the last time you did something for the first time?"
I don't know about you but when I watched Steve Jobs announce the iPad2 I thought he was talking about something new. The iPad and the iPad2 were like apples and oranges. Something with a whole new purpose, use, utility - essentially an entirely new device.
Then I turned my thoughts to the residential real estate industry. Where''s our iPad2? For that matter, where's our iPad?
In residential real estate I really can't remember anything that was done for the first time for a very long time.
No apples, no oranges just one big soggy fruit salad. According to Godin, that scenario creates the perfect time to strike and GO.
Godin's newest book (as in three days old) is titled, "Poke the Box". An early read indicates that he believes you try something and continually "poke" it to see what it does until you discover what that something that works - something with new potential.
Something new is always a puzzle and the only way the puzzle can be solved is by a constant effort made to adjust and try new things and then to measure the result.
Change - measure - adjust and change more - measure and so on - forever!
I think the key is not to invest a lot of time exploring what we did yesterday but what it is we intend to do tomorrow. As soon as we accept what is given - we lose all power to influence.
So the question I have now is here's the iPad2 in the real estate industry? Not sure but what the heck let's go round-up some sacred cows, poke them a bit and see what we can find.
Lighter, faster, more was the theme but the theme was not a new one for Apple or its founder and CEO, Steve Jobs.
In the face of serious global competition the guy just keeps on going and never looks back. Despite noticeable health issues, Jobs is driven to constantly be better and to never stop, to go even when faced with the threat of new products from others trying to catch him.
I attended a program last night here in Orange County. The speaker was Seth Godin. The center of his talk was based around one question.
"When was the last time you did something for the first time?"
I don't know about you but when I watched Steve Jobs announce the iPad2 I thought he was talking about something new. The iPad and the iPad2 were like apples and oranges. Something with a whole new purpose, use, utility - essentially an entirely new device.
Then I turned my thoughts to the residential real estate industry. Where''s our iPad2? For that matter, where's our iPad?
In residential real estate I really can't remember anything that was done for the first time for a very long time.
No apples, no oranges just one big soggy fruit salad. According to Godin, that scenario creates the perfect time to strike and GO.
Godin's newest book (as in three days old) is titled, "Poke the Box". An early read indicates that he believes you try something and continually "poke" it to see what it does until you discover what that something that works - something with new potential.
Something new is always a puzzle and the only way the puzzle can be solved is by a constant effort made to adjust and try new things and then to measure the result.
Change - measure - adjust and change more - measure and so on - forever!
I think the key is not to invest a lot of time exploring what we did yesterday but what it is we intend to do tomorrow. As soon as we accept what is given - we lose all power to influence.
So the question I have now is here's the iPad2 in the real estate industry? Not sure but what the heck let's go round-up some sacred cows, poke them a bit and see what we can find.
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