Online Real Estate Ad Spend to Surpass Newspapers by 2012
The subprime fiasco notwithstanding, real estate advertisers in the US can be counted upon to increase their online spend over the next few years.
Borrell Associates in its “Real Estate Outlook 2007-2012” report has predicted that online real estate advertising will outpace print newspaper advertising within the next five years. According to the report, newspapers will receive $4.8 billion in advertising revenue in 2007, while online will receive $2.6 billion. By 2012, however, newspapers will receive $3.3 billion compared to online advertising’s $3.5 billion.
While real estate newspaper ad revenues is expected to drop a stable 6.8% till 2008, expect a steeper 16% fall in 2009 and another 13% decline in 2010.
According to the report, spending by real estate advertisers on online ads and promotions will account for 16.7 percent of total online spending in 2007; Web site design, communications and database services will make up the remainder. By 2009 those numbers will change only slightly with 17.3 percent of online budgets going towards online ads and promotions.
Good times ahead for the online real estate classifieds market.
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Filed under: Business, Statistics