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OwnerBuilder-forsale.com
Advertising Industry: Real Estate Sector
"Increasing the Value of the Classified
Ad"
White Paper release: November 2005 |
"Increasing the Value of the Classified
Ad" is the first of several white papers to be released
by Marketingweb.com detailing the For Sale by Owner or "private
party"
real estate market. The papers are based on the analysis of
data obtained through OwnerBuilder-forsale™, a four and
a half year research project conducted by Marketingweb.com
from January 2001 to August 2005.
IE Screen
Capture
SITUATION: Large advertising entities
have painted themselves into a corner with regard to real estate
classified advertising. These entities have catered to the
realtor market providing realtors with better advertising tools
and coverage. Reason? Realtors purchase more expensive ads
and offer repeat business. Not exactly rocket science.
CHALLENGE: Paradigm shift. The incredible
growth in home values has made a six percent real estate commission
significant capital. Recent research has shown that 80% of those
who wish to sell their homes plan to try to sell them first as
a For Sale by Owner in an attempt to save the commission. Recent
interest rate increases and overall changes in the economy have
renewed fears of a housing market bubble burst. This has intensified
not only the owner's desire but his/her need to preserve equity
during a sale. This means there will be an increase in the placement
of private party classified ads. Further, the more "upside
down" the markets tend to become the less commission realtors
will be able to charge. A direct inverse relationship to private
party classified ads will be seen in the reduced placement of
realtor ads as realtors rely more heavily on the Multiple Listing
Service (MLS). Translation: More classified ads... less profit.
An opportunity exists to greatly increase
classified ad market share and revenue through the addition
of properly formulated online advertising programs sold in
conjunction with the print classified ad. The caveat? Offering
private parties better tools with which to sell their own homes
could alienate the realtor and immediately reduce current market
share. How do you manufacture a situation that allows the large
advertising entities to "have their cake and eat it too?" Current
efforts to accomplish this executed by online factions of radio,
television, and newspapers have not been successful.
SOLUTION: Marketingweb.com currently offers
consulting services to newspapers who wish to develop their corresponding
online advertising channel revenues. The Marketingweb.com white
paper entitled "Increasing the Value of the Classified
Ad" is specifically aimed at helping newspapers and
magazines maximize their private party real estate classified
ad revenue while protecting their current realtor market share.
The paper is scheduled for release in November 2005.
BACKGROUND: Marketingweb.com began researching
the For Sale by Owner market in January 2001. In 2003 based on
two years of preliminary research, Marketingweb.com launched
OwnerBuilder-forsale.com™, a prototype
"For Sale by Owner" advertising agency utilizing traditional
and online advertising capabilities and a "neighborhood" strategic
partner network. Marketingweb.com ensured that the prototype
respected the legal distinctions required to qualify as an advertising
agency versus a "realtor". The concept was introduced
within a restricted territory that offered a diverse range of
home values, target demographics / psychographics, and a highly
saturated realtor market.
Marketingweb.com concluded prototype research
in August 2005. Since that time, Marketingweb.com has reviewed
the data to determine best customer, service model / pricing,
and has analyzed competitor response / change mechanics. Several
white papers will be released based on this four and a half year
research project.
**White papers are available to clients only
and require a current consulting contract. If you have an interest
in becoming a client, please contact Diane W. Collins, Founder
- Marketingweb.com.
Contact information is listed below.
*************
For Further Information:
Advertising Industry: Real Estate Sector
"Increasing the Value of the Classified Ad"
Contact: Diane W. Collins, Founder
Company: Marketingweb.com
214.226.1200 tel
dcollins@marketingweb.com
Press Release: October
31, 2005
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