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NEW Advertising Benchmarks for Real Estate in 2021

CEO Khai Intela
Running real estate ads in 2021 and curious about how your campaigns stack up? It can be challenging to gauge whether your efforts are hitting the mark or falling short. Luckily, we've got you covered!...

Running real estate ads in 2021 and curious about how your campaigns stack up? It can be challenging to gauge whether your efforts are hitting the mark or falling short. Luckily, we've got you covered!

Understanding Real Estate Advertising Benchmarks

To ensure your real estate advertising is on track, it's essential to look at industry benchmarks. These benchmarks provide valuable insights and answers to questions like:

  • What's a good conversion rate for real estate advertising?
  • What's the average click-through rate for real estate ads?
  • What's a good cost per lead for real estate advertising?

To shed light on your real estate advertising results, WordStream and LOCALiQ have partnered to share fresh data and benchmarks for the real estate industry. Let's explore the benchmarks for search, display, and social ads across four key real estate vertical subcategories:

  • Average click-through rate
  • Average cost per lead
  • Average conversion rate
  • Average monthly budget

Real Estate Advertising Benchmarks for Search Ads

Real estate advertising benchmarks for search advertising

According to the data, paid search is a winning advertising strategy for the real estate industry. With a high average click-through rate across all subcategories and a low average cost per lead, it's clear that paid search delivers excellent results.

Notably, apartments and rentals boast an exceptional average cost per lead of just $35.52. Even homes for sale by agent campaigns see a low cost per lead under $100. This can result in a high return on investment, considering the average home cost and the average commission.

The average cost per click across all real estate subcategories is also promising at less than $1.70, compared to the industry average of $2.37.

Real Estate Advertising Benchmarks for Display Advertising

Real estate advertising benchmarks for display advertising

Display advertising is an ideal strategy for real estate businesses looking to increase awareness among potential buyers or renters. Although display advertising typically has lower conversion rates and click-through rates, its benefits lie in complementing search ad results.

While the average cost per lead and cost per click for real estate display ads may be higher than search ads, there's a nearly 60% increase in conversions when a search is conducted after seeing a display ad. This makes display advertising a valuable and effective approach for real estate advertising.

Real Estate Advertising Benchmarks for Social Media Advertising

Real estate advertising benchmarks for social media advertising

Social media advertising on platforms like Facebook, Instagram, LinkedIn, and YouTube proves highly effective for real estate. A significant percentage of real estate agents use social media as part of their marketing, with nearly half reporting that social media generates their highest quality leads.

The data reveals that our clients are achieving excellent results with social media advertising, boasting a high average click-through rate ranging from 2.01% to 3.02%. In comparison, the available data on average social ads click-through rate for real estate is 0.99%.

Moreover, real estate businesses are witnessing a low average cost per lead across various subcategories. Apartments and rentals, residential real estate agents, homes for sale by agent, and real estate brokers all have average costs per lead below $80.

Improve Your Real Estate Advertising Results

By understanding and comparing your real estate advertising results to these benchmarks, you can assess your performance and identify areas for optimization. Whether it's search, display, or social advertising, LOCALiQ provides further insights and actionable ideas to enhance your real estate advertising.

Remember, these benchmarks are based on a sample of 2,690 North American-based LOCALiQ client accounts in the real estate vertical. The data was collected from March 1, 2020, to April 25, 2021, and includes a minimum of 10 unique active clients in each subcategory. All currency values are posted in USD.

If you're interested in exploring more advertising benchmarks for other industries like home services and healthcare, be sure to check out the related articles.

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