The recent debate on this blog centered around claims by Property Press regarding the validity of research methodology would again appear to closely resemble a discussion around the seating arrangements on the Titanic, as the latest readership survey from Roy Morgan looms large as an iceberg.
The data of readership of NZ newspapers and magazines has been neatly presented by Lance Wiggs to show what amounts to in the main a pretty depressing picture of the printed media industry. When it comes to New Zealand newspapers analysing the 12 months to August 2009 as compared to a year earlier 19 newspapers showed declining readership with just 5 showing increased readership. When it comes to magazines 91 magazines showed declining readership with 50 showing gains.
In regard to the specific area of real estate the performance of the 2 key magazines of Property Press and Real Estate (regional Wellington magazine) were pretty much in line with industry trends, showing declines.
The weekly readership of Property Press fell by 38,000 from 273,000 to 235,000 over the past 12 months; the Real Estate magazine falling by 25,000 from 132,000 to 107,000.
These figures as presented in the chart below are matched to the visitor sessions experienced by online real estate websites as measured by Nielsen Online. The data shows the average weekly sessions hosted by each website over the same tracking period as the Roy Morgan readership survey.
So whilst the Property Press readership has fallen by close to 14% over the past year to a weekly average readership of 235,000; total web traffic to a group of 8 real estate listings sites has grown by over 20% to reach a weekly session total of 912,919.
The largest total sessions for real estate is recorded on the property pages of Trade me with a weekly average of 557,816 a year-on-year increase of 22.8%; realestate.co.nz comes in with a weekly average of 127,190 sessions per week an increase of 27.1% and then the largest company website of Harcourts had an average of 70,180 sessions per week an increase of 18.1%.
Further objective reinforcement of the shift from print to the web.
Clearly the transition phase is now on. Carey
Carey
I fear that the majority in this industry are not as yet ready to recognise, let alone accept this transition, or are suitably able to act on it when advising clients as to appropriate marketing mediums for selling homes.
Alastair, maybe the reluctance to change has alot to do with the margins / rebates made to agents through the sale of big ticket printed media advertising and the ability to brand themselves and their franchise using vendor funding.
Whereas when advertised on realestate.co.nz / TradeMe, the presentation of the property is the key aspect with no large franchise branding and agents details standardised.
Most purchasers now want to just look at a single source for all property for sale in their chosen area, not wade through the Blue Book, then Tommys, then the Property Press, then the Dom Post / Herald property section, sifting out the wheat from the chaff.
I agree that the dinosaurs who fail to embrace this change will be the ones leaving the industry, especially post November 17th when they have to start providing more tranparancy over the costs and rebates applicable.
The local, national and international market reach of content rich property portals have clearly usurped traditional print media. This said realtor’s need to consider the best mix of tactical media to communicate vendor property to their target market(s) and audience. Considering our micro market localised here in Queenstown, we have a mere 25,000 residents living in the Wakatipu Basin and a visitor market of circa 1.4m per annum. Many of these visitors are escaping the demands and pressure of every day working life and are not in cyber-cafes, parked up with laptop on knee or peering into a tiny screen of a hand held device surfing property online. What we observe out on our streets are visitors with publications such as Property Press tucked under their arm or pouring over pages in coffee shops and restaurants. For the immediate future we will continue to leverage an online and print combo until such time as prospective client’s media consumption habits make a quantum shift away from print.
Steve
I could not agree with you more – there is a balance between online and print and you are so right the laptop or handheld can not substitute for the casual browse of a paper or magazine in a cafe.
However the matter of property searching is a comprehensive and time consuming process where the ability to truly search and investigate the available properties is something undertaken in depth and largely these days online. Undertaken anywhere in the world or anywhere in this country for any location in this country – all no more than a couple of clicks away.
I’m promoting 3 similar homes within 400 metres of each other. I have a fourth starting soon. Do I go for the personal print profile I’ll get by selling the newest vendors $4000 worth of print ads? Or do I simply whack it on the internet for free and get the same buyers through anyway? Most agents still choose option 1 and that is why, in my area, print is still attracting agents/vendors and just hanging in there.
Steve
I know and appreciate your support of the web as the most effective form of marketing, however I think it establishes the wrong expectation of value if you consider the web as a free medium.
Whilst there is a component of free with the web, as the web becomes the logical and intuitive medium used by all in this industry for marketing so individuals will look for stand out position – this service will command a premium. I think it is appropriate therefore to consider the web as a highly cost effective medium rather than free.
Perhaps I’ll start a craigslist for realestate, make it free, make my money from advertisers and undercut you Alistair?
Competition is good and the web is the ultimate marketplace.
The point I feel worth highlighting is nobody wins if this industry considers the web as “free” – not as a function of its cost, more as a reflection of perceived value – that is my concern.
The expression “whack it on the internet” has an underlying tone of “fast and cheap” – nothing could be further from the truth of the value derived from the use of the web.
Love your attitude of proving value. You so “get” it.
A question for you. I pay for feature upgrades now and think they are great value. Could you invent a new product/presentation method for http://www.realestate.co.nz, that would cost me more and give me added value in line with that extra cost? I’m thinking omehting like a “feature” feature listing. A gold class, etc?
Steve
Thanks for your comments – your thinking is in line with our plans for 2010.
The scope and potential for online marketing through the realestate.co.nz website has only just begun to be exploited for the joint benefit of the consumer and the industry.
Bring on 2010!
[...] In my view, $500 bucks goes much further when put into web upgrades than invested into print media. The writing is on the wall for print media for property [...]
[...] In my view, $500 bucks goes much further when put into web upgrades than invested into print media. The writing is on the wall for print media for property [...]
[...] In my view, $500 bucks goes much further when put into web upgrades than invested into print media. The writing is on the wall for print media for property [...]
[...] In my view, $500 bucks goes much further when put into web upgrades than invested into print media. The writing is on the wall for print media for property [...]