Advertising Spend ~ How much are we wasting ?

Way back at the start of the last century, John Wanamaker commented, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.”

This maxim, has been regularly quoted since by many a prudent Sales & Marketing Director, and while it may bring a smile to many controlling the purse strings, those being honest will acknowledge an air of realism in the suggestion.

One wonders however, with the change in marketing spend profile brought on by the increase in Social Media promotion, whether the implication that 50% is wasteful should be reconsidered.

This graph (which I do not take credit for) demonstrates the growth in on-line promotion and Social Media spend, which is now accounting for double the spend in the traditional Mass Media markets.

Social Media Marketing allows us to become considerably more focussed on our target market, and liaise / correspond with an audience who have expressed an interest in our products and offerings.

Not only can clients opt in and out of subjects and discussions specifically of interest to them, but they will keep track of sales availability, and comments from happy and satisfied purchasers, all leading to an increase in confidence prior to them even visiting showhome and information centres.

One major developer commented that conversion rates on site improved 3 fold as clients knew all about the development, product, availability, and price, before they came to the site.    And while this obviously appeals to the customer, think of the benefit to the sales negotiator who is spending much more time with pre qualified potential clients.

Social Media is changing the way our industry is projecting itself to the market place and I would suggest that even Mr Wanamaker would acknowledge that today’s methods are somewhat more efficient than those in which he participated.

More information on Social Media in the New Homes Industry is available on our web site at ... www.stuartrennieconsulting.co.uk, or by emailing ... stuart@stuartrennieconsulting.co.uk

Counting Chickens ???

It might just be my imagination, but some recent positive vibes rippling out from the South may already be reaching Scottish shores.   There has been a flurry of what can only be described as good news stories emanating from our industry over the past couple of weeks, and while the doom and gloom merchants are still (and always will be) talking things down, it is perhaps worth focusing on some of the more upbeat messages that have been aired recently.

A few weeks ago we learnt about the Redrow sale to Springfield, assisting the Elgin based company’s drive into the central belt, giving it a total of 30 sites across Scotland and the ability to build about 500 new homes per year. Congrats must surely go to Sandy Adam and his team for this confidence driving initiative

And then in the past couple of days we read that Scotia have unveiled a new financing deal with Lloyds Bank to see them through until 2014 ~ (when did we last read positive things about the banks and our industry ?) and only yesterday, the Muir Group, owner of one of Scotland’s best-known house builders Muir Homes, announced that it has continued its rapid recovery from the slump with a 48% rise in pre-tax profits to £2.5m. That follows the 70% rise a year ago from a depressed £1.1m in 2009.

On a smaller scale, but still on a positive note, nurses are being given a helping hand to get onto the property ladder and move closer to a new £842 million super hospital in Glasgow.

The scheme – the first of its kind in Scotland – allows first time buyers who work within NHS Greater Glasgow and Clyde to apply for up to a 90% mortgage and secure the funds for an interest-free deposit on a property.

All in all, some fairly positive news to shout about.   Dare I suggest that we can start counting the chickens now that some have started to hatch.

Remember, you heard it here first.