A friend of mine (“John”) had just started a real estate brokerage app similar to Redfin/Zillow. He asked me to figure out the demographics of home-buyers and think of ways to market to that group as well as the spectrum of how much everything would cost. John asked that I remove all branding from the presentation, not include the name of the startup and not describe its specific competitive advantage because he is still waiting for his official launch, so ignore the formatting.
I’ll skip describing the process of figuring out the data and just give you the results. The data from my research showed that Caucasian married couples are the most frequent purchasers of homes followed by single females. Additional research also found females typically have the “final say” when choosing money managers and real estate agents. As a result it was important for the advertisements to be directed toward married couples ideally in the age range of 36-50.
Once the demographic was figured out I did research to figure out some of the most common ways people advertise today. Not surprisingly one of the more popular methods was through targeted Facebook and Google advertisements. I found that “US advertisers on average pay $24 to get 100 people to click on their advertisement”. Another method of online marketing was mass email marketing – which I personally don’t believe is very effective especially for something like this. However, I did find the Skimm, which is a popular newsletter geared towards young professional women, had a valuable audience with the only downside being its substantial cost of $15k-$75k.
Moving away from digital I then thought about magazine advertisements in pop culture magazines and real estate magazines. Obviously, the local real estate magazines were significantly cheaper at a cost of around $1k, while the national pop cultures magazines were in the $50k-$100k range.
After presenting my findings to John he decided to attempt a deal with the Skimm and pursue Facebook advertisements.