Do billboard advertisements work?

Question: So many agents in my area are using billboard advertising, but because it is very expensive, I am reluctant to try. Do billboard advertisements really work?

Billboard advertising is very expensive, so my advice for real estate professionals is to stay away from billboards. Unless you use it as a part of a strategically prepared, calculated advertising campaign and you know precisely how to measure results, billboard advertising is ineffective.

One thing is sure. There are many less expensive ways to market your services and most likely you will get more bang for your advertising dollar using carefully planned direct mail or display advertising.

Every type of advertising works if it’s done right, on purpose, with regard to advertising laws. Which, unfortunately, very few people do. One way or another, here are the questions you should ask yourself before spending your hard earned dollars on any kind of advertising:

- What are my expectations?
- How will I know that my advertising works?

Most real estate agents have no idea how to track their advertising. They don’t really know when a specific marketing piece works and when it is a flop. They repeatedly run the same ads without measuring results — and they are no able to measure results because no specific, measurable objectives were established. They hope that their ad will give them more visibility, generate more calls, or build their name recognition. But such results are not measurable. They are impossible to track, compare and quantify.

It gets worse. Most agents know that their advertising doesn’t work but they continue running the same ads to please, or to pacify, the sellers. Often they are afraid to stop because everyone else is doing it and they feel that without an ad they would be out of business.

The bottom line:

1. Keep in mind that no matter which advertising type you choose, it can produce fantastic results or it can be a complete waste of resources.

2. Make sure your advertising is created in such way that results are measurable and quantifiable. And always track your results.

3. Repeat those ads that are bringing you the highest return on investment and discontinue the ones that are money wasters as soon as possible.