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Kelsey Presentation


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Presentation prepared for Kelsey's Interactive Local Markerplaces conference on March 16, 2009 in Los Angeles.

Presentation prepared for Kelsey's Interactive Local Markerplaces conference on March 16, 2009 in Los Angeles.

Published in: Business, Technology
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  • 1. Growth of consumer expenditures and access to inexpensive capital  fueled local marketing budgets in key categories Auto  Real estate  Retail  Home products  Growth fueled expansion and innovation in local market media  Entrepreneurial growth  Venture-backed growth  Within climate of media expansion, distribution of consumer attention  has dispersed broadly Current economic contraction severely reducing local marketing spend  Local media competing on price and results during period of deteriorating  financial performance Social media expansion provides enticing low- to no-cost impact on lead  generation Current status: rapid re-engineering of business models and market-  facing tactics
  • 2. Transaction Peak Today Value Home sales 7.1 M 4.5M Avg. Price $220K $175K Total Transaction 1.56T $822.5B Value Commission rate 5.75% 5.0% Commission value $89.5B $41.1B Bubble economics created 3 –  Transacting agents 600,000 500,000 5M additional transactions Avg./Agent $149.2K $82.3K during boom. Average price has declined 25%  from $229K to $170K. Incomes dramatically eroded Total price decline likely to level  by rapid decline in at 40% transactions and price.
  • 3. Approximately 3.6M Unique % of  (in 000) Visitors Total homes for sale Networks 12,408 32.0%  All independent sites Move 7,425 19.2% have millions of Top brokers 4,862 12.6% duplicated listings. Top 5 12,108 31.3%  Brokers present broad independents view of market All others 1,915 4.9%  MLS distribution Total 38,718 100.0% expanding and becoming consumer facing. Independents include Trulia, Zillow, Homegain, RealtTrac,, NCI Interactive Any house online at any time.
  • 4. Reduced market Marketing spend  activity diminished lead volume during $10 leanest period $8  Top agents invest $6 approximately 8.5% of $4 commission revenue in marketing $2 60% of agents invest less  $0 than $3000/yr in Peak Today marketing Intermediary bears no inventory risk Average inventory: 9.6mos. in existing home sales
  • 5. Personal Income Hi Cost Newspapers Radio Specialty magazines Internet Traditional New Listing MLS Media Media Services Direct E-mail mail Marketing Broker Web Site Blogs Yard Social Signs media Lo Cost
  • 6. Category Activity  Required monthly Avg. leads per leads: 45 2 per month listing  Free sources # transactions 22 to earn $100K generate 20 – 25% Average time of total activity 180 days on market  Paid sources Total leads 550 required deliver leads at Annual approximately $20 marketing $7,920 investment per lead Marketing investment per $15 lead
  • 7. Media % Use Spending distribution Yard signs 98% E-mail 91% Other media; 13% Broker web site 88% Spec. Newspapers, 16% mags.; Personal web site 86% 24% Specialty mags. 84% Internet listing 77% service Direct mail 76% Agent Newspapers 66% Internet web mktng; 24% site; SEM 61% 23% Social media/blogs 25% Cable TV 12% Source: Real Estate Agent Study Billboards 9% Conducted by OSR Group for NCI Radio 7%
  • 8. January # of  Agent Platform Users Agents requirements: Facebook 57.2M 156,000 Content creation  MySpace 75.6M 80,360  Personality LinkedIn 7.7M ??? Twitter 2.6M ???  Authority Active  Relationship 930K 136,195 Rain  Outcome: Massive personal networks
  • 9. Advertising spend will increasingly focus on  differentiation  Customer contact management will become a point of excellence  Social media applications will increase word of mouth leads by 10-15%  Listings enhancement will be supplanted by personal presence  Increasing proliferation of content generation/management tools Publish once to many  Original quality  Professionalism will require greater commitment  and expertise.
  • 10. Leading local media NCI Real Estate Brands  provider serving the The Real Estate Book housing market Rental markets: 48% of  revenue Unique Homes Resale markets: 35% of  New HomeFinder revenue Remodeling: 17% of revenue  Your Life By Design Integrated media platform  Your Home By Design Distribute 10M+  iConnect publications each month in 600 markets  2.1M unique users to multiple brand-specific web sites