Sogou advertising strategy for the real estate agency industry!

Industry Analysis

China's real estate industry has gradually moved from an incremental era (new homes) to an existing era (second-hand homes), and the value of the real estate agency industry is becoming increasingly apparent. In August 2020, KE Holdings Group went public in the United States. At its peak, its market value exceeded US$80 billion, far exceeding the market value of new real estate developers such as Country Garden, Evergrande, and Vanke. Internet giants are also very optimistic about the real estate agency industry. Tencent invested in Beike Real Estate very early on, and Alibaba also established a strategic partnership with Easyhome to establish the Tmall Good House platform. Due to the growth of real estate market stock, the increase in market penetration of new homes, and the opportunity of digital transformation, the real estate agency industry has a very strong development momentum.

China's real estate industry has begun to shift from an incremental market to a stock market

In the long run, the market size of the real estate development industry will slowly shrink and the situation of housing supply exceeding demand has been reversed. Back in 1998, my country promulgated a series of relevant laws and policies, such as the "Notice on Further Deepening the Reform of the Urban Housing System and Accelerating Housing Construction." After the notice was issued, housing allocation was completely stopped and purchasing new houses became the main way for urban residents to meet their housing needs.

Driven by both residents' demand and government guidance, the real estate development industry has developed rapidly, with the annual newly started residential area soaring from less than 200 million square meters to nearly 1.7 billion square meters. The per capita housing construction area in urban areas has increased rapidly, from 19 square meters in 1998 to 39.8 square meters in 2019, while the growth rate in the previous 20 years was only 12 square meters. According to the survey and research data released by the Chinese people for the bank, the home ownership rate of urban and rural residents in my country is as high as 96.0%. This shows that after more than 20 years, the contradiction between supply and demand of urban housing in my country has been well resolved.

The housing shortage demand has been reversed and future demand for new homes is expected to decline slightly. Referring to the development path of the real estate industry in the United States and Japan, the sales and leasing of existing housing will gradually dominate transactions in China's real estate market.

• Sales and penetration analysis

Second-hand housing transactions through intermediaries are expected to reach 90% by 2025 and 92% by 2030.

Through intermediary house rental transactions, it is estimated that the penetration rate of the house rental market will remain at around 50% in the next decade. In 2019, the penetration rate of real estate agencies in China's new housing market was about 25%. It is predicted to increase to 45% in 2025 and to 60% in 2030.

• Second-hand housing/rental transaction analysis

From the perspective of customer groups, there is obvious complementarity and substitutability between buying a house and renting a house. People who prioritize convenient transportation usually choose to rent a house, and then buy a house when their work, study and quality of life are stable.

The trajectory of second-hand housing/rental series transactions may be repeated in the future. We can predict this trajectory and provide timely maintenance for customers, thereby accumulating new users and cultivating customer stickiness, enabling real estate agents to judge customer needs in advance - the most important link in the transaction chain.

• Customer analysis and integrated marketing strategy

The client is a chain real estate agency founded in September 2003. It is a real estate e-commerce platform based on the concept of "Internet + agency". The client owns more than a hundred stores and covers multiple administrative regions. It is a chain brand that can achieve resource sharing. The main business includes the sale and purchase, leasing, etc. of second-hand houses, and it is equipped with an excellent service team that can integrate the services of the warrant center, loan center, and customer service center to provide customers with a full range of high-quality services and establish a complete second-hand housing sales service system.

• Advertising mode

• Integrated promotion strategy

Currently, the client mainly invests in bidding, and no products other than bidding are launched. After learning about this situation, the value-added consultant provided the client with an integrated promotion strategy, suggesting that the client increase ecological promotion and brand promotion in addition to bidding promotion. Among them, bidding promotion occupies a major position, with 80% of the budget going to bidding promotion.

• Account structure building

It is recommended to distribute the accounts according to different distribution cities, with one account for each city, and no mixing, to facilitate later statistical data. The plan is to allocate keywords according to their parts of speech, such as business words, core words, general words, competitor words, etc.

• Keyword strategy

Use the golden triangle and four quadrants strategies to expand user coverage. Expand the account's keywords once a week to increase the amount of consumable keywords;

Check the relevance of search terms and keywords, initial stage: 3 times a day, mid-term: once a day, late stage: once a week; negative words to reduce the entry of irrelevant traffic, initial stage: 3 times a day, mid-term: once a day, late stage: once a week.

• Creative Strategy

The following combinations can be used for creativity:

【Title＋Description】Name of the property｜Price｜Location｜Preferential information｜Advantage selling points

【Picture】Panoramic view of the building planning｜Building name＋Details｜Interior decoration pictures

Picture tips: Strengthen the name of the property and use more exterior pictures.

• oCPC strategy – precise CPC delivery for search, coarse and fine oCPC combination, expansion of cities around large cities

Adopt CPC bidding strategy - it is recommended to set up refined buying words, matches and bids, adopt oCPC bidding strategy - broad matching of general words, and continue to add optimization.

• Brand strategy – online + offline brand integration, brand zone + brand selection, escort for brand marketing

The brand integration placement is in the form of online + offline, subway station signboard advertising, coordinated with online advertising, multi-line, systematic and process-based, guiding the public users to click, increasing the advertising exposure, intercepting users, and focusing on the dissemination of brand information.

• Marketing effectiveness data

After optimization: Through keyword sorting, advanced style addition, oCPC, backend CVR/CTR/effective leads were significantly improved, and lead costs were significantly reduced, meeting and exceeding customer expectations by 100%. And compared with competing platforms, it has obvious advantages in resource costs.

The above is what the editor shared in this issue. Only by observing trends, knowing the wind direction, and grasping the market direction can we clearly define the direction of optimization.

Author: Silk Road Praise

Source: Silk Road Praise