Why Smart Agents Leverage Google AdWords

Whether you’re a new real estate agent, or a seasoned agent, you have one thing in common;  You are constantly trying to generate leads so you can stay in business.

What many agents wrestle with is where they should focus on generating leads, and what will get them the most leads for what they are paying each month.

Smart agents, however, already have this figured out.  They know where the leads are, and how to track their ROI. Smart agents are leveraging Google Ads.  Here’s why:

1. Immediately Capitalize on High Traffic Real Estate Searches


If I asked you where most people begin their search for a home, you would probably answer “the internet”, and you would be right!  In fact, according to a joint study by Google and the NAR, “90% of home buyers searched online during their home buying process.”  The study also suggests that real estate related searches have grown over 200% in the past 4 years.

A well built Google Adwords campaign will help you get in front of those home buyers when they make those real estate related searches.  And, unlike SEO, you can get in front of these people immediately.

Imagine, hundreds of people looking for “homes for sale” in your area, or, looking for “real estate agents” near them, and BOOM…Your ad pops up addressing their needs, giving you an opportunity to win their business.  That is part of the power of Google Ads.

2. Quickly Find Out What is And What Isn’t Working

Is this working?

Have you ever spent a bunch of time, and/or money putting together a flyer to send out to your farm, and gotten a weak response and wondered why? Was it the photo you used, the wording, the color…what was it?  That’s one of the problems with flyers, and other forms of traditional marketing…When something isn’t working, it’s hard to know why.

Digital marketing tactics, like Google Ads, makes it easy to know what is and isn’t working.  And, while it’s usually a good practice to let a campaign run for a while before you start making any changes, you can find and pluck out any rotten apples pretty quick so you don’t waste a bunch of money on what does’t work.

You can tell if an ad isn’t doing well because you will start to receive data on that ad right away.  You can see things like:

  • How many times the ad has been shown (impressions)
  • How many people who were shown the ad actually clicked on it (click-through-rate)
  • How many people who clicked on the ad converted into a lead (conversions)

If the ad has a ton of impressions, but a really low click-through-rate, you’ll know that there’s a problem with your ad.

If a lot of people are clicking on the ad, but no one is converting into a lead, you’ll know that there’s probably an issue with the page they are landing on, and so on.

3. Easily Track Your ROI and Scale Your Efforts


I remember sitting in a class at a real estate office and there was a vendor pitching a product to all the agents.  The product wasn’t cheap, so I started to think about what the cost-per-lead might be. In my curiosity I raised my hand to ask the speaker if he knew what the average CPL would be for the product.  He wasn’t sure, and I wasn’t sold.

Real estate sales are all about leads.  To paraphrase Gary Keller, if you don’t have any leads you don’t have any business.

It’s also important to know how much money you’re spending for each one of those leads, so you know whether or not you’ve made a profitable investment.

With Google AdWords, like most pay-per-click advertising, you can track your average CPL daily, almost in real time.  When you know your average CPL, what your typical closing ratio is for your leads, and what your average commissions are, you can easily gauge your ROI.

What’s even better is that if your ROI is positive, you can scale your efforts.  If you start out with a small budget and your campaign is bringing you enough leads to be profitable, you can just increase your budget and bring in more leads.

Smart agents are leveraging Google Ads for the above reasons….what are you leveraging?

Michael Johnson on Linkedin
Michael Johnson
William "Michael" Johnson is a digital marketer and founder of Crown Listings. He's also a contributor to Inman News, where he teaches real estate agents digital marketing tips.

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