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How much to invest in ads for real estate launches?

How much to invest in ads for real estate launches?

One of the biggest challenges for real estate marketing managers is figuring out exactly how to invest in digital campaign ads. When creating an ad, several questions may arise, such as:

  • Which parameter should I use to invest in online ads?
  • How much should I spend on my digital campaigns?

Average invested by the real estate market

Currently, invests in real estate launches, on average, from 1.5% to 3% of the PSV in marketing for lead capture. 

For example:

Your project has a PSV of R $ 1 million. In this case, within the recommended percentage, your company decides to invest 1.6% of PSV, which means an investment of R $ 100 thousand in marketing. This value includes all the necessary items for a campaign, from the contracted agency to the investment in digital media.

But how much of that value should we use for digital campaigns?

Find out below the strategy to know how much to invest precisely to get the number of leads needed for your real estate launch.

How much should you invest in ads?

To invest assertively, it will be necessary to have three pieces of information at hand. Only then will you do a reverse account and find out the recommended investment amount: 

  • How many units do you want to sell? 
  • What is your conversion rate?
  • What is the Cost Per Lead (CPL)? 

To understand how the reverse account works, follow these steps:

  1. Identify the conversion rate of leads to sales;
  2. Check how many units you need to sell;
  3. Consider the number of companies to sell as the percentage of conversion within a 100% whole;
  4. Set the number of leads required, according to the conversion rate, to sell all units.

Imagine that you have an enterprise with 200 units. If your conversion rate is 4%, the forecast will be necessary to generate around 5,000 leads to sell all units.

Once you’ve figured out how many leads your company needs to generate, consider the cost per lead for your campaigns. This is one of the most important marketing metrics for the strategy. It is worth mentioning that the average value of leads for the real estate market varies between $ 50.00 to $ 100.00, including all the investments for the launch.

In this practical example, we will stipulate a cost of $ 15.00 per lead. If the CPL is $ 15.00 to generate 5,000 leads, you need to invest $ 75,000 in media for your digital campaign.

At the end of the reverse account, check if the amount needed to generate the leads is compatible with the amount available for investment in media.

Now that you know how much you need to invest, check out the best investment strategy to start your ads.

How to invest in online ads?

If you do not have a history of conversion rate and, mainly, the CPL, it is interesting that you invest in a fast and straightforward one-week campaign. With these ads, it will be possible to know the cost per lead in general.

After the testing phase, it is time to launch the primary campaign. For example, you will start the digital campaign 30 days before the event in a real estate launch.

At the beginning of the campaign, it is recommended to start with a smaller investment so that you have a sense of how the target audience will react and if the ads will give results to make the necessary optimizations. 

Then increase your investments gradually until you reach a peak investment in campaigns. It is recommended that this action be done up to a week before the end of the digital campaign to generate a large part of the leads. Commonly used in real estate Pakistan.

The idea is that you and your team have enough time to serve them and still finish the sales stage, even before the launch of your project.

For you to continue generating leads until the end of the campaign, after the investment peak, gradually decrease the amount invested. 

How to optimize results in online ads?

When we talk about optimizing results, we need to pay attention to two essential elements:

  1. Quality of the generated leads;
  2. Quality of service.

To keep track of both factors, it is necessary to have a tool that helps in attendance control. It is interesting, then, to have a specific CRM for the real estate sector to monitor the calls.

Below, check out two essential tips to optimize your campaigns more and more.

Integration with marketing and CRM tools

All marketing tools used in the digital campaign need integration with real estate CRM. This is because there is a crucial point in optimizing ad results: agility in service. 

It works like this: when the lead fills out the form, your data instantly migrates to CRM, alternating between professionals within a queue. Most importantly, they can track the leadership journey and verify sales traceability.

The proximity of the service team (pre-service)

If you forward these leads to a large number of brokers, it will be tough to track, control the service, and, consequently, have assertive results and data.

Companies in the sector that intend to achieve better results have chosen to pass on leads to a leaner team of brokers. Or, still, they are opting for a pre-service team whose scope is an agile service to optimize the entire service process.

For read more : checklist for writing content

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