Real Estate Internet Advertising

Real Estate Internet Advertising - Borrell Associates tracks internet advertising spending by real estate companies and mortgage lenders. Borrell Associates has provides real estate and mortgage internet advertising projections through 2013. Borrell estimates that online advertising spending by real estate related companies and mortgage lenders grew by nearly 20% in 2007, to $9.1 billion, and that it will continue to grow through the 2008 downturn, but at a much slower pace.

While online advertising spending by real estate companies and mortgage lenders grew by 30.4% in 2006, to $7.6 billion, Borrell is forecasting that annual growth in real estate related online advertising will slow to 11.3 percent in 2008 and 5.1% in calendar 2009.

There seems to be a slowdown during 1Q and 2Q 2008 which also has signs of a reduced 2009 forecast. The current dollars are driven by new entrants into the online advertising space... which inturn.. will maintain and propel category dollars through each new seasonal entrant.

Total real estate related ad spending including not only ads placed on the Web but in newspapers, television, radio and sent via direct mail is projected to decline by 2.2% in 2008, to $31.6 billion. Borrell forecasts that growth in online spending will largely be offset by large declines for newspapers, directories and other print mediums, and direct mail.

The internet is expected to 33.1% of a projected $35.3 billion real estate related ad spend by 2013, compared to a 19.6% share of the $29.9 billion expended in 2005. Internet related advertising include real estate agents ads, broker ads, rental property management ads, real estate developer ads, and mortgage originator ads.

From 2005-13, Borrell projects that newspapers could see their share of the real estate advertising decrease from 25.8% to 19%. The company's analysts thinks direct mail will only account for 6.3% of the real estate related ad spend in 2013, compared to 14.3% in 2005.

Cable TV and cinema are expected to make modest gains in market share during that time period, broadcast and cable TV combined are expected to command 22.2% of real estate related ad spending by 2013... but the 13.6 market share point shift to online is nearly equal to the 14.8 points Borrell expects to be lost by both newspapers (6.8) and direct mail (8 ).