In the real estate sector, several real estate marketplaces have been created over the last 10 years, such as Idealista, Habitaclia, Fotocasa, Homegate, Pisos.com, ImmoScout24, Newhome, Zoopla, Rightmove, etc.
These marketplaces are very interesting for very specific real estate product profiles and clients.
Google Ads campaigns in the real estate industry are among the most complicated to create and manage – especially international campaigns.
Why? Because the leads that are converted into sales have a conversion value for the company that is almost unparalleled in other sectors.
Let's look at some numbers and understand the CTR:
Average click-through rate or CTR is an indicator of how relevant your ads are to the audience they're reaching. Simply put, CTR is the ratio of ad clicks to ad impressions. A CTR of 1% means that 1 out of every 100 people who see your ad click it.
The average CTR for paid search ads is 3.17% across all industries.
The average CTR for paid search ads is 3.71% in real estate.
One of our real estate clients has a search campaign CTR of 20%, 7 times higher than the global average:
This means that for every 100 impressions generated by our client's ad, 20 users click through to their website, after having done a very clear keyword search on what they are looking for.
The average cost per conversion for Google Search Ads is €50 worldwide. If, in this case, we consider a conversion as one lead, this means that, globally, each lead generated through Google Ads costs €50.
The average conversion rate in real estate is 2.4%, which means that you need 50 leads to convert one sale.
Traditional real estate commissions vary between 3% and 7%. We'll use the classic 5% to make for a simple calculation.
We've said that we need about 50 leads to generate one sale. 50 leads x €50 = €2500.
Let's say the statistics and Google are wrong, and instead of 50 leads we need twice as many to generate a sale, for a total investment of €5000.
A €400,000 villa can generate a commission of €20,000 if we use the 5% commission from before.
For another client that we have been managing for years with Google Ads campaigns for real estate, in the last 30 days we've generated 16 leads, between calls through the website, submitting a form or sending an email.
How do we measure these conversions?
By connecting the client's Google Ads account with their Google Tag Manager on their website, we can measure in detail all types of conversions and movements and analyse in depth the behavioural flows of users on the website.
Let's now look at some examples of actual searches:
In the UK, a Google search for "Buy apartment Madrid" generates 40 monthly searches, "Madrid apartment for sale" 210 and "house for sale in Madrid" around 50.
So, around 300 searches for these keywords from the UK alone, every month.
300 searches per month is 10 searches per day, and we're talking about a micro-niche market where we love to work:
As this example is a micro-niche market, competition is at low or medium levels.
Another example, from the DACH market (Germany, Austria and Switzerland), of users from these countries searching Google looking to buy a property or a house in Mallorca or Ibiza:
There are about 10,000 relevant searches per month, which is about 350 searches per day (13 searches per hour).
In these types of real estate Google Ads campaigns, there are searches and conversions year-round:
Goolge Ads for Real Estate is the perfect ally of any real estate agency, even more so if you work mainly with sales compared to rentals, in order to generate quality, interested leads.
And now, some questions for you:
Do you know what the conversion cost / cost per lead of your real estate is?
Do you use remarketing or email campaigns for leads that have not converted?
Do you know what is the cost of a new customer acquisition that generates a sale?
On to the next conversion!