At the end of 2017, AdIndex conducted a survey of developers about cooperation with advertising agencies. A third of respondents noted the low quality of ideas, the lack of innovative promotion methods and the weak expertise of some contractors. More often than not, agencies offered a standard advertising strategy that might not meet the client’s goals. Sometimes agencies did not delve into the specifics of the developers’ business and preferred to work with familiar solutions.
Real estate promotion in contextual advertising really requires a special approach. To advertise a product in contextual advertising, we must know it well and have an idea of the target audience. With regard to real estate, problems begin at the initial stage – with the classification of housing.
Housing classes in new buildings and their differences
In Russia, there are several classes of housing: economy, comfort, business, elite. Each of them has its own characteristics and its own target audience – they determine the approach to promotion.
Let’s dwell on the classes in more detail:
Economy… Besides the fact that this class of housing is the most affordable, it also has technical differences. The ceiling height does not exceed 2.7 m, the kitchen area is up to 8 sq. m, the apartment may have adjoining rooms. The main task of developers is to minimize the price.
Comfort… It also belongs to the class of inexpensive housing, but there are differences: the ceiling height can reach 2.75 m, the kitchen area is up to 12 sq. m. Unlike the offers of the economy, apartments can be located closer to the city center.
Business Class – a segment of high quality housing. The technical characteristics are better than in the previous two classes: for example, the ceilings are increased up to 3 m, the kitchen area can exceed 12 sq. m. Buyers who are interested in business-class housing are showing great interest in the quality of housing, comfort and developed infrastructure. Price in this case does not play a decisive role, as in the case of comfort and economy.
Elite real estate… Not such a popular segment, in contrast to cheaper housing, but the demands of the target audience are much higher. For example, an audience that is looking for elite housing, looks through individual offers, pays attention to additional advantages: the location of the house, closed territory, round-the-clock security, views from the window, neighbors, architecture of the house, the level of finishing of common areas, the presence of a helipad, a yacht dock, etc. etc. For buyers of such real estate, the request for the uniqueness of housing is relevant.
It is also important to understand the difference between an apartment and an apartment.
Apartments from a legal point of view, they are not considered residential premises. You cannot register in them, as in an apartment. The developer is not obliged to build an apartment house in an area with developed infrastructure. The buyer has the opportunity to completely redevelop the premises, he only owns the purchased squares, no subsidies are provided, the property tax is 0.5%.
The category of buyers who choose this housing is not as well protected by law when participating in shared construction, unlike apartment buyers. This offer is most relevant for buyers who do not have enough money for an apartment.
It is worth considering that when promoting apartments, a specialist cannot write “apartments” in advertisements, and advertising – the price for a lead – will be more expensive.
Apartment – type of living quarters with the possibility of registration. The developer is obliged to think about the developed infrastructure in the area during the construction of the residential complex. The cost of apartments is higher than that of apartments, but the rent is lower, property tax is 0.1%. Subsidies are granted under certain conditions. Redevelopment requires permission.
Given these differences, we can better understand the target audience to which we will sell housing.
What Real Estate Buyers Need
Each property has its own advantages that need to be shown in advertising. In the process of working with the developer Bonava, we identified a pattern in what attracts the buyer of a particular class of housing the most. We will talk about this further.
Residential complexes from Bonava are located in St. Petersburg, presented in comfort and business classes.
The comfort class includes the Magnifika Lifestyle residential complex and the Grona Lund residential complex. These are Swedish-style apartments located in areas with developed infrastructure. As with all projects, the houses are built with energy efficient and sustainable materials. The difference between these two residential complexes is in their location: Magnifika Lifestyle is closer to the center, and Grona Lund is outside the city.
Business class residential complexes include Magnifika Residence and Skandi Klubb. Apartments with spacious layouts in Scandinavian style near the center.
How we studied the reaction of buyers to stocks
During the year, we changed creatives for Bonava residential complexes, promoted promotions, special offers and monitored user reactions and dynamics of key indicators, one of which was the number of leads.
In the chart below, we have plotted the percentage of leads received, divided by ad content. You may notice that Business Class buyers are interested in gifts or unique offers. And the audience, looking for comfort-class housing, first of all paid attention to the conditions of purchase, the opportunity to take a mortgage or mortgage vacation, use the maternity capital, etc.
Here are some examples of our ad copy:
- Mortgages: Mortgages from 7.3%. Apartments with finishing. 15 minutes from the metro.
- Gift: When buying an apartment in the 3rd stage, a parking space as a gift.
- Discount: For a package deal (buying an apartment and a parking space), get a discount of up to 10%.
For the comfort class apartments in Magnifika Lifestyle, despite the interesting offers, advertising with information about mortgage programs worked better, and in the business class there was a good response to promotions and gifts.
Such tests and observations allow you to better know your audience, create a new or change the existing approach to promotion.
Obviously, it is extremely important to take into account the class of housing when planning advertising activities.
When promoting a comfort class, you need to take into account the buyer’s ability to pay. In this case, all advertising offers work well that bring monetary benefits to the buyer: discounts when applying for a mortgage, concessional lending programs with a reduced rate, discounts on apartments on the ground floor.
Business class has a different target audience, it is attracted by additional gifts and bonuses. For example, a storage room or a parking space as a gift. Buyers of business class housing pay attention to comfortable living conditions, infrastructure and pleasant bonuses in the residential complex: apartments with a beautiful view of the bay or a fenced area with its own park zone. As a rule, all these are features of a residential complex that influence the choice, and around them you need to build an advertising campaign.
It is worth noting that we continue to show business class mortgage offers and economy class discounts: you should not completely deprive the audience of any offer. But having an understanding of the preferences of the target audience, we can change the approach to promotion and increase sales.
Do not forget to keep track of the display of offers and promotions on all resources. It happens that developers with some frequency launch new offers on their websites, but forget to inform the agency about them.
It is important for the client to understand that you are looking at his product from all angles. Working on creatives, taking into account the needs of the target audience, the situation on the market and in the country as a whole, is one of the factors that allows us to establish work with the client.