Agents are becoming more conscious about monitoring their vendor paid advertising (VPA), according to the CEO of CRM provider MyDesktop, Scott Wulff.
Speaking with Real Estate Business, Mr Wulff believed a surge in use of the marketing component of the Fairfax-owned MyDesktop CRM pointed to agents being more aware of advertising costs and VPA.
“Typically, in any market, agents will use the e-marketing component [of MyDesktop] for the creation of brochures and flyers, both online and hard copy and the creation of their e-newsletters and marketing material," he said.
"But over the last 18 months to two years, a lot of our clients are using the advertising component; they're monitoring their vendor paid advertising, what their advertising costs are.
"It’s been a real eye opener for us in terms of where the marketplace is. There are a lot of [agents] out there at the moment doing it tough, and now they're focusing on dollars and cents,” he said.
"Understanding VPA is a big focus, and a lot of people are using that part of MyDesktop to monitor that aspect.”
But while real estate trainer Daniel Spencer, from Activate Growth, agreed that the marketing of property is becoming increasingly important, he believed agents should be more focused towards an online audience rather than the physical forms of advertising.
“When someone sees a signboard, or reads about your listing in a newspaper or magazine, what’s the first thing they do? Go online to take a look,” he told Real Estate Business.
“Really, all those forms of marketing are used just to deflect the attention of the buyer to the online space. It’s really in this area that has seen a lot of growth.”
According to the Macquarie Relationship Banking 2012 Residential Real Estate Benchmarking Report, on a national level agents are recovering 72 per cent of advertising costs from the vendor, up two per cent from 2009.
South Australia is leading the nation, with agents recouping 94 per cent of VPA.
Since 2009, only Victoria and New South Wales have decreased the percentage of advertising costs recovered through VPA.