It was a two page, four color ad in Wired Magazine, from the "World's #1 Web Host." It featured a Realtor website. Domain name, live chat, online polls, and newsletter creation were included. "No programming experience required," intoned a testimonial. The total cost was $60 -- for an entire year. Welcome to the brave new world of agent websites as commodities.

If you read anything even remotely technical, you've probably seen the ads from 1&1, the self-proclaimed #1 web host. I'm used to seeing their multi-page, glossy, 4 color ads hawking their extensive website services in magazines such as PC Magazine. But here they were in Wired Magazine, a mainstream (beyond geek) publication, and what type of website were they showcasing? A website for a Realtor.

The ad featured a fictional real estate agent holding, of course, a cell phone. The fictional brokerage was "Brown & Simmons." But the screenshot of the website looked pretty familiar: "Local Listings, New Construction, Mortgage Calculator, Newsletter Signup ... ."

I've been saying for years, "Anyone can build a website." Well, here we are: Agent websites are now a dime a dozen -- or $60 per year, anyhow.

While websites are being made into commodities, online advertising is blowing open the spending doors.

Borrell Associates reports online real estate advertising will increase 55 percent this year. Forrester Research reports online advertising spending will increase 100 percent by 2010. The New York Times just released 2005 second quarter results: Print advertising is down, but online advertising grew 27 percent.

What's going on here? Websites are merely tools that anyone can build and everyone seems to be selling, but other facets of online advertising are just as important -- if you want to grow your business. Accordingly, Realtors are opening their pockets for online advertising. McKinsey & Company reports, "Online [advertising] is capturing all the growth."

While agents might flinch at $1000 for a website, spending the same amount every month on impressions, clicks and leads is fairly common. (see definitions below)

Agents are putting their money in online advertising. They know a website is a tool to mine gold, but also that the gold is in impressions, clicks and leads -- not just websites. They are putting their money where it counts.

Several oberservations can be made of the advertising market today:

• Companies are selling results to agents, not simply websites -- unless they want to compete with the world's largest hosting company, and each other, for smaller and smaller margins.

• Agents are demanding results for their money. And they are ready, willing and able to invest aggressively in results.

• Agents want impressions -- getting their image and their listings in front of buyers and sellers all over the web. They want clicks -- visitors coming to their site, or their listings. They want leads -- people filling out forms, and ending up as an email in their inbox. Impressions, clicks, and leads: The goldmine of real estate advertising.

Published: August 5, 2005

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