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November 28, 2006

RE/MAX
Valley Real Estate
Contact:  Al Leonard
Phone: (330) 629 - 9200

<For Immediate Release>

RE/MAX Associates Shying Away From Newspaper Advertising

When RE/MAX International Senior Vice President Kristi Graning asked for Associates' opinions on the value of newspaper advertising, she got an earful.

"Newspaper advertising is going the way of the cassette player," wrote Marty Sorrentino of RE/MAX Hearthstone in Merrick, N.Y.

Added June Comey (ABR, CRS, SRES), with RE/MAX Associates Poway in Poway, Calif.: "I have found no value lately in newspaper ads. Very expensive and the general public does not seem to use them as a resource for home searches or open houses."

And so on. Virtually every Associate who responded to Graning said that advertising in newspapers did not produce a significant return on investment. While some continue to advertise in print, it was mostly because clients expected or demanded it.

Graning, Senior Vice President of IT and eBusiness, was interested in Associates' advertising opinions because she had been asked to participate in a panel discussion at a conference sponsored by Classified Ventures - a joint venture owned by five large media companies, including Gannett and The Washington Post Company. They've banded together to explore ways of obtaining more online advertising.

It's no secret that the Internet has deeply cut into newspapers' advertising revenue, especially in the classified area. Media companies are looking for ways to combine print and online advertising. At the conference, held in New Orleans just before the NAR conference in November, Graning was the only representative of a traditional real estate organization. Other participants in the discussion included forsalebyowner.com, realestate.com and oodle.com.

"Newspapers are very interested in adjusting their services," Graning says. "They want real estate agents back as customers, so they were particularly interested in what our Associates had to say. I was able to give them some constructive feedback. That was because Associates did such a good job responding to my request. I'm grateful for that."

A few other comments and suggestions from Associates:

"Times have changed ..."
"I had been a big advocate of the newspaper, having been in the business for more than 23 years, but times have changed. The Internet is where 85 percent of buyers/sellers start their search. That's where they spend the most time and the can virtually tour the homes they like."
Steven Young Jr. (ABR), RE/MAX Consultants, Little Rock, Ark.

"No replies at all ..."
"I still do newspaper ads to appease the sellers, but I also tell them there were no replies at all (if this is the case, and it usually is). I'm getting more response from Craigslist these days."
Barb Avery (CRS, SRES), RE/MAX Eastside Brokers, Kirkland, Wash.

"Our office does a group ad ..."
"Our office does a group ad, but have shrunk the per-property ad space, therefore shrinking our overall ad size and cost 40 percent. It's not worth the expense and I'd quit altogether tomorrow if I had a more convincing way to show sellers it's worthless."
Jim Henry (ABR, CRS), RE/MAX Associates Plus, Hudson, Wis.

"My leads mostly come from the Internet ..."
"Newspaper ads are extremely too expensive for the ROI, and over a month add up to a hefty price tag. I track my leads and they mostly come from the Internet or buyers driving through neighborhoods. Maybe one a year originate from the newspaper. Newspapers can cut their costs if they wish to obtain my business."
Lynn Vaughn (ABR), RE/MAX Equity Group, Vancouver, Wash.

"Our ROI is 0% ..."
"We measure ROI the same way almost everyone does - by measuring dollars spent to direct results obtained. We don't have to track it, as it's not necessary - our ROI is 0%. Yes, we do it to please our clients, and in listing presentations. Newspapers should provide special Internet advertising that is Realtor and consumer-friendly, and this could help their business."
Don Lehman, RE/MAX Real Estate Services, Anaheim Hills, Calif.

"Realtors sell houses ..."
"I write very effective ads with great photos. But with hundreds of dollars spent, I get no real response. I find that Realtors sell houses. I do, however, feel that if newspapers can take a different approach, such as sorting ads by city or price rather than scattered all over the place, that would help."
Jeanne Tishma, RE/MAX Homeward Bound, Sheffield, Ohio

"Something exciting to advertise ..."
"I only advertise in newspapers when I have something exciting to advertise, such as a new listing, open house, or price reduction. I explain that I place most of my advertising budget on the Internet, as that is where most of my buyers come from. My sales director put it succinctly: If routine newspaper advertising was worthwhile, the real estate section would be so heavy you wouldn't be able to pick it up."
Kathryn Acciari, RE/MAX Innovations, Boston

"Advertising money is a finite resource ..."
"In my experience, almost every comment I have ever heard from a real estate agent advocating newspaper advertising has had to do with placating or appeasing seller concerns.
"This is a little like the 'Western' philosophy of medicine; if you treat the symptoms, the patient will feel better. While this may be true, the problem does not go away.

"Instead, it may be helpful to explain to our clients that advertising money, after all, really is a 'finite' resource. Therefore, spending the money wisely, utilizing proven systems that generate maximum results per dollar and employing dynamic, measurable technologies such as the Internet, work better to sell homes. If the idea is to be in more places, never knowing with 100 percent certainty which one is going to work, I'd rather spend ALL of my ad money in areas that give the higher statistical returns than the local newspaper.
 
"Finally the best seller appeasement of all is a home that is SOLD."
Eric Recktenwald, RE/MAX Capital City, Austin, Texas

Copyright © 2006 RE/MAX International Inc. 11/28/06