So what’s projected to drop in digital? Online display, for one. Investments in online run-of-site (ROS) display from the agent and broker community have decreased 15.9% since 2014, with estimated 2015 spend at $511.9 million. Between 2014-2019, Borrell Associates expects a 92.2% decrease to $47.2 million.
Meanwhile, agents and brokers increased targeted display spend 2.1% to $4.9 billion between 2014 and 2015. However, Borrell Associates projects a 22.9% decrease to $3.7 billion between 2014-2019.
This shouldn’t be too much of a concern to realty hubs like Zillow or Realtor.com. Zillow, for instance, gets less than 20% of its revenue from display advertising, according to Borrell, accruing most of its revenue by exposing home listings within certain ZIP codes on a pay-per-click model.
But video advertising investments are growing, Borrell said.
“We’re seeing an 8% uptick in streaming video advertising for agents and brokers, which doesn’t seem like much unless you put it in the perspective that they’re actually scaling back digital a bit,” he said.
Streaming video investments among agents and brokers was $862.7 million, the company said. By 2019, that figure is expected to grow to $4.9 billion.
There are also modest investments in streaming audio. While agents and brokers reduced spend in the channel by 40.2% to $19.4 million from 2014 to 2015, by 2019 Borrell Associates expect a tremendous 2,300.2% increase, with streaming audio spend totaling $778.5 million.
In fact, among all the different stakeholders in real estate (agents/brokers, mortgage lenders, rental unit managers and developers), Borrell Associates projected only streaming video and streaming audio to see ad spend increases by 2019. Display, email and paid search will all decline, the company estimated.
Mobile investments are increasing as well, driven by millennials’ tendencies to rent and use mobile devices and online realty hubs like Zillow or Realtor.com to seek out listings.
Interestingly, millennial interest has also created a slight uptick in print advertising
Certainly, agents and brokers aren’t decreasing their overall ad spend, which rose 2.2% in 2014. (Rental unit managers saw the biggest overall ad spend increase in 2014 – 13.8% – followed by developers at 9.5% and mortgage lenders at 6%.)