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Online Marketing and the Real Estate Sector

Published on October 19, 2016

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Over the past several years’ companies have seen dramatic changes in the way they market and advertise their products and services. The introduction and dynamic growth of social media and online marketing has permeated virtually every aspect of people’s lives. These dramatic changes have provided franchisors and franchisees new ways to reach potential customers. This is especially true for the real estate sector, as many potential investors, whether looking to purchase a house or a real estate franchise, search the Internet to research and learn about their potential investment opportunities.

There are various methods an investor can use to gather information before making their decision. For those looking to purchase a home, they can use portals such as MLS or even Craigslist. Those looking to buy a franchise can find information on the franchise’s website, or using a site such as to do a comparative analysis.  Franchisors and prospective franchisees can use interactive media and social portals like Facebook and Twitter to reach their target audience by using a more personal approach. Potential homeowners can benefit from the increased interaction and transparency and information that’s available to help them make a more informed decision than they may have been able to do. Way of reaching specific targets have evolved dramatically and rapidly within the past thirty years, and franchisors and investors who understand this will grow within this new era of digital marketing.

Online Marketing Benefits

The benefits of online marketing and advertising reach franchisors, potential franchisees and potential homeowners.  Online advertising tends to be more cost effective compared to traditional print and electronic media, since digital publishing is less expensive than print publishing and network advertisement. In addition, market reach is typically higher with online marketing, since the geographical and socioeconomic boundaries present in traditional advertising do not exist online. Advertising budgets can be decreased, and the extra funds re-invested into other company resources.

An issue that franchisors and franchisees may have to consider is how online advertising applies to provisions in franchise agreements that pertain to marketing and franchisee territory rights. In the real estate franchise sector, a number of franchise agreements contain language pertaining to franchisee advertising rights within and outside their designated territory. Because franchisee territory rights are typically based upon geographic boundaries, how should the use of online marketing be governed? The numerous benefits the Internet provides as a marketing medium indicates that potential issues that could arise should be examined by franchisors and rectified in future franchise agreements, where necessary.

Check out the detailed report on The New Real Estate Boom for more information.

Written by Team

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