Real estate marketing metrics: how to measure success
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In the fast-paced world of real estate, staying ahead of the competition is essential to thrive in this dynamic market.
As a real estate professional, you invest time and resources into your digital marketing campaigns, but how do you know if they’re truly driving results? Are you generating the right leads and engaging with your target audience effectively? To navigate the intricacies of digital marketing success, we’ve created this quick guide on real estate marketing metrics to get you started.
Whether you’re a seasoned pro or just starting, this guide will equip you with the knowledge and tools to evaluate the performance of your ad campaigns and unlock the true potential of your real estate marketing efforts. Let’s dive in and discover how to measure your digital marketing success like a pro!
What exactly are real estate marketing metrics we should be looking for? What actually matters?
When it comes to real estate ads, what truly matters is tracking the right success metrics. Keep an eye on metrics like cost per lead (CPL), cost per click (CPC), and return on ad spend (ROAS).
CPL measures the cost of generating a lead through the ad campaign, while CPC measures the cost of each click on the ad. ROAS, on the other hand, measures the revenue generated compared to the cost of the ad campaign.
While these are important, it’s equally crucial to track the lifetime value of a lead, considering real estate transactions can be high-value and take time to materialize. So, focus on real estate marketing metrics that gauge the quality of the leads generated, such as the conversion rate or the percentage of leads resulting in closed transactions.
What is a good Cost-Per-Lead and Cost-Per-Click?
The cost per lead (CPL) and cost per click (CPC) for a real estate ad on Facebook and Google can vary depending on a number of factors, such as the target audience, geographic location, competition, and ad format.
For Facebook ads, the average CPL for real estate ads is around $1.81, while the average CPC is around $1.72. However, it’s important to note that these numbers can vary widely depending on the specific market and competition.
For Google ads, the average cost per click for real estate related keywords can also vary depending on the location and competition. According to Google, the average CPC for real estate keywords on Google ranges from around $0.40 to $6.35.
For CPL on Google, it depends on which part of Google we’re talking about
The cost per lead (CPL) for a real estate ad on Google depends on where you are placing your ad. Remember advertising on Google can occur across Search, Google Discovery, and Google Display Network (GDN) and can certainly vary between them. However, here are some rough estimates based on current industry benchmarks and our own research:
Google Search: The average CPL for real estate ads on Google Search can range from $10 to $50. However, this can vary widely depending on the specific market and competition. It’s important to note that real estate keywords can be highly competitive and expensive, so it may be necessary to bid higher to achieve desired results.
Google Discovery: Google Discovery is a newer ad format that allows advertisers to show ads across multiple Google properties such as YouTube, Gmail, and the Discover feed. The average CPL for real estate ads on Google Discovery can vary widely depending on the targeting and ad format, but our experience suggests a range of $3 to $10 per lead.
Google Display Network (GDN): The average CPL for real estate ads on GDN can also vary depending on the targeting and ad format. We have found that the average CPL for real estate ads on GDN is around $1.76, but once again, this can vary depending on the competition and targeting.
Is there a simple way to calculate the potential return on ad spend (ROAS) I can expect?
One of the real estate marketing metrics that is beneficial to track is ROAS. Calculating your return on ad spend (ROAS) isn’t rocket science. Follow this simple formula: Revenue – Cost / Cost x 100 = ROI
Now, let’s take an example. Suppose your ad spend is $2,500, and you generated $17,500 in revenue from the sale of a $350,000 house. Your total cost is $2,500. So, your ROI would be ($17,500 – $2,500) / $2,500 x 100 = 600%.
The good news is that you can expect to consistently get the best performance possible out of your campaigns
With Evocalize’s technology, you can expect to get the best performance possible from all of your campaigns. With industry best practices, expertise, and real estate marketing metrics coded right into every program, you can be confident you’re following the latest and most effective techniques for real estate advertising.
Plus, with machine learning and optimization features built in, the platform will automatically adjust and improve your campaigns over time for even better results. And best of all, the platform is designed to be easy to use for even non-sophisticated marketers, meaning agents and brokers can achieve the same or better performance than professional agencies at a fraction of the cost.
So whether you’re looking to build your brand, generate leads, or recruit new talent, Evocalize has you covered with the tools and expertise you need to succeed in today’s competitive real estate market.
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