Monthly Archives: June 2007

Real Estate

Newspapers Lose Battle for Real Estate Ads

Real estate advertising will become less prevalent in newspapers as it shifts to the Web, where online home buyers are actively searching for properties, analysts say.

Currently about 15 to 20 percent of real estate advertising is online, but Mike Simonton, media industry analyst for Fitch Ratings credit analysis service, says it is poised to go higher for a number of reasons.

Suzy Antal, director of marketing for Prudential Real Estate Affiliates, a unit of Prudential Financial Inc., said many Prudential practitioners have been pulling back on advertising during the current downturn, but as they return, they’re shifting ad budgets to their own Web sites, creating blogs, and taking different approaches beyond newspapers.

“Is newspaper a high priority? No,” Antal says. “I don’t believe my buyers and sellers are going to be in that market.”

Tim Fagan, president the real estate portion of Classified Ventures, which manages website for 125 newspapers, says it plans to “significantly increase’ its investment in Homescape, a real estate-related Web site that provides home listings, but he declined to provide specific numbers.

It’s wrong to assume that online advertising is cheaper than buying space in the paper, says Blanche Evans, editor of Realty Times, a online real estate news service. After all, online users expect extensive color photographs, lengthy descriptions, and even video tours —and all of those features can add up for a real estate practitioner.

Environment

Malcom Gladwell on the SUV Phenomenon

Malcom Gladwell is one of the funnier and more interesting writers of our time. His book “The Tipping Point” is one of my favorites. His recent article from the New Yorker, “Big and Bad” is a fascinating look at the history and marketing of SUVs, why people like them, and what the auto manufacturers have learned about how to make and sell them, to satisfy our craving for them.

When John wrote the article below, Gas Prices Too High? it brought home that, in a roomy and comfortable Prius, a 3,500 mile drive he took on his recent vacation cost him all of $249 in gas (at an average $3.35 gallon).

In an area where many people (my wife included) commute to Roseville or Sacramento, or beyond to get those perpetually necessary paychecks, the result is quite a financial squeeze if you don’t own efficient vehicles. What’s the point of getting a higher paycheck if it is eaten up by the commute to work?

There are plenty of reasons for big powerful vehicles. Towing and hauling is a real requirement for many people. But you should really read Gladwell’s article to see why people REALLY buy SUVs.

It’s a hoot. 

This article posted by Richard Webster