The recent housing boom has left real estate investors scrambling for footholds. With property prices at an all time high throughout 2020, that mid-year 2021 drop is hitting some of us in all the wrong places. The pandemic saw a surge in housing demands. As ever, more people buying means less people renting.
Those of you who invest in real estate experienced this price surge. With so much competition on the market and houses going for higher median rates than before, how do we compensate for many home buyers shying out? One method lies in driving real estate investor leads with Facebook and Google Ads.
What Is Going on with Real Estate in the US?
Just like any market bubble, the real estate surge had to end. As of the last few months, it has been returning to pre-Covid levels. There was a rebound in June which has kept realtors on their toes, but nevertheless, house prices are now significantly higher than they were at the start of 2020. When you buy rent properties to rent out, this puts you at a longer stretch before you make those crucial returns. With the currently booming economy, investors are more confident, credit repair has seen a downturn, and consumers have more money to spend on buying houses.
With soaring prices and a larger number of people on the property ladder, renters are missing out. Here are our hot takes on how real estate agents can bring in more traffic both in and out of the digital world by focusing on investor leads.
Tips and Strategies for Using Facebook and Google Ads to Generate Real Estate Leads
Digital advertising remains one of the best ways for us to improve footfall. According to various sources, the average conversion rate for your Facebook ad is around 9%. So, a good conversion rate is considered 10% or above. Google ads have different conversion rates across varied industries, but they have an about 2.5% conversion rate in real estate.
With these figures in mind, let us talk actionable tips that you can use to drive those leads:
Step 1: Set Up KPIs
Before you start doing anything, set up KPIs so that you can monitor the success of your ads. We would recommend tracking analytics such as the cost of each lead, how many clicks you get and to where, how long site visitors stay for, and other metrics. Google and Facebook ads both give you their own analytical data, but you have to be able to record it to see measurable progress.
Step 2: Consider Software
Tracking those KPIs is one thing, but sourcing the data to enter into the graphs is another. Upgrading to a real estate data analytics software platform boosts your ability to track ad performance and, therefore, saves you money.
Step 3: Create the Ad
There are things to think about when creating your Facebook or Google ad. You need a combination of elements which come together to portray your real estate business in the best light. Key components include your images, which should be high quality; your keywords, which should be in your copy; and the offer that you are making. Targeting will be set up already using Facebook but do check they are hitting your demographic and not using a generic business profile.
Formatting your ads means choosing which template works best for you. Google ads allow you more limited options than you have with Facebook. Facebook also has brighter visuals and a better layout for showcasing multiple products.
Targeting tips include entering your main competitors as interests of potential investors. If they are looking for investment opportunities with others, you could be advertising to them. Target those who already own homes, target individuals who fall into a higher age range, and target by zip code.
Creating cost per click pricing is up to you. Facebook and Google both suggest the average price your competitors are spending. It is advisable to go above this.
Do keyword research for your area and use out of the box thinking to produce your own. Names of important local buildings like schools or colleges can help. Think about things from a real estate investor’s perspective. What would you be searching for if you wanted to buy a property to rent out later, whether you are looking to make traditional rental income or Airbnb income?
Tips for Locational Targeting with Google and Facebook Ads
Let us talk about location. Real estate is highly competitive and, the chances are, your closest adversaries are targeting local sales, too. So, to stand out, you have to go outside the local area. Say you are a real estate investor in Florida. There are a high number of retirees in Florida as people live the American Dream to retire in Miami. If you could target the areas outside of the state with geo-targeting in your ad campaigns in both Google and Facebook, you could land those clients before they set foot in your state.
Try to keep any town or region related keywords local and niche. If locals have nicknames for the town or state, incorporate these. Incorporate street names wherever you can.
Consider Video Ads for Better Real Estate Investment Lead Generation
Video marketing is said to grow revenue up to 50% faster than using still images. Videos capture the eye, provide at-a-glance information, and allow you to reach even those who are scrolling through social sites. Create a short marketing video introducing yourself and your services. This will play automatically on Facebook news feeds and provide you with better ROI for your ad spend.
Google Ads or Facebook Ads? Which Are Better?
Google ads and Facebook ads each have different reaches. The gratifying thing about Facebook is that it has a substantial portion of baby boomers among their monthly users. This is the demographic most likely to buy a rental property to invest in. Google will let you create one ad per keyword, so you may hit multiple targets with the same selling strategy as you put to Facebook. Thus, Google can be better value for money.
The key here is that you optimize for both and use both. If you find you are generating more leads on one platform than you are from the other, you can switch. You will be able to tell through the KPIs that you set up in the beginning.
Real Estate Leads Are Out There
Let us end on a positive note. Real estate leads are out there, and they are looking for you. The right ad formula can help you to connect. Once you have setup as above, monitor your performance and seek continuous improvement for best results.