Most real estate agents have probably never heard of performance marketing. And why would they have? The property marketing industry is dominated by subscription-based portals, which are basically an online version of the old real estate ads in newspapers. You subscribe for a year and pay a monthly fee. At the end of your subscription, you’ll have to renew it and, surprise surprise, the prices will increase dramatically.
With today’s technology, there are many other ways to advertise and sell your properties. This article will explain how Performance Marketing can help. Don’t worry, it’s a lot simpler than it sounds!
What is Performance Marketing?
Put very simply, performance marketing is a type of online advertising where you only pay for performance. This ‘performance’ usually takes the form of an ‘action’, for example, a click. However, the action could also be a lead, or maybe even an actual sale. It depends on what platform you are advertising on.
Now for a quick lesson in marketing jargon. Let’s imagine you are advertising on Google Search. You pay a small price when somebody clicks on your ad. This is called ‘Cost-Per-Click’, or CPC for short. In return for this CPC, Google sends the user to your website. This is an example of a performance marketing campaign where the action is a click. Other platforms may offer a Cost-Per-Lead model, which would be called CPL for short.
Performance Marketing gives you control over your ad campaigns because you can usually choose how much you want to pay. The more you pay, the more you get. Furthermore, you can stop and start advertising whenever you like.
On top of Google, there are many performance marketing channels that are dedicated to a specific industry.
Tripadvisor is a performance marketing platform for hoteliers and online travel agents. If you have hotel rooms for sale, you can advertise them on Tripadvisor. When an interested person clicks your hotel, they’ll land on your website. In return for this, you pay a CPC. Kayak, Momondo, Trivago also work in the same way.
In the U.K. Moneysupermarket is a performance marketing channel for insurance, energy and telecoms companies. They offer a variety of commercial models, including Cost-Per-Click, Cost-Per-Sale and even a commission model, where the advertiser pays a commission of the total sale price. The same exists in Germany, with Check24.de.
Amazon also offers performance marketing campaigns to its merchants. Vendors can pay to be listed higher up in the search results, and are also charged on a CPC model. The more you pay, the more you get.
Real Estate and Performance Marketing
If you are looking to upgrade your marketing strategy, Govesta is the platform for you. Govesta is a performance marketing channel, dedicated to the real estate industry. We send interested property hunters to the agent’s website, using a CPC model that gives you full control over your campaign.