Newspapers And Local Home Magazines Losing Real Estate Advertising To Web

Newspapers And Local Home Magazines Losing Real Estate Advertising To Web

According to a new release from Borrell Associates, real estate agents, who initially tried to appease home sellers by advertising more on traditional channels, this year cut their print budgets and pushed more money into the Web. Total ad spending on real estate has declined 3 percent this year, while spending on the online segment has grown 25.8 percent, hitting $2.6 billion. Borrell projects online real estate advertising to grow at 12.4 percent next year while total real estate advertising continues to compress. In three years, says the report, agents and brokers will be spending more ad dollars with online media than with the newspaper.

Real Estate Ad Revenues for Online/Newspapers/Other Media ($ thousands)


2007 Forecast

2012 Projection







All Other






Source: Borrell Associates, Inc., November 2007

Two million adjustable-rate mortgages are due to be re-priced over the next 24 months and as many as 25 percent of these might go into default as a result, consistent with a report published in October by the Census Bureau showing that homeownership fell for the fourth consecutive quarter. From a peak of 69.3 percent of households in 2004, now only 68.1 percent of households own their own home.

After average annual increases of approximately nine percent in total real estate advertising between 2001 and 2005, the market essentially flat-lined in 2006 and is forecast to fall by 3.3 percent this year, says the report. This trend will continue for at least the next two years.

For newspapers, the situation is worse. The study projects that coming off last year's high of almost $5.2 billion in print advertising, there will be a 6.8 percent decline this year, almost the same again in 2008, followed by a 16 percent fall in 2009 and 13 percent in 2010. By then, real estate marketers will be spending more on online media than on newspapers or local homes magazines.

For more details in the release, and access to the complete study, please visit Borrell Associates here.

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