Ad Networks: Low-risk Marketing Value for Brokers

Profitability is an abiding problem that every real estate broker faces. It takes constant focus and jockeying to squeeze every last penny out of revenue opportunities. While growth strategies always carry some risk and vary on their return-on-investment, advertising networks like those listed in our annual Technology Guide can deliver a comparably low-risk revenue stream to a broker's consumer-facing website. With ad networks, brokers can select diverse online format options, convenient passive earning programs, and distinct targeting abilities.

Many ad networks offer native advertising, or customized content that suits a broker's brand image, website style, and outreach strategy. Depending on the goals, content can be delivered in a variety of different styles, including banners, pop-ups, interstitials, audio, and video, and interactive ads. That way, the ads match the form and function of the broker's website. But, while there isn't much consensus on which type of ad is most effective for lead conversions, the best ad network will regularly review the broker's website analytics and adjust the style and content for optimal revenue gain.

An ad network's visitor data analytics enable them to gather detailed market intelligence and deliver content targeted for individual brokerages and the regions they serve. As a result, a broker's website displays advertising content that is segmented according to their specific audience's geographic location, demographics, lifestyle preferences, and even the primary time of day for online activity. This allows a broker to run relevant ads from high-quality advertisers that will positively reflect their brand image.

For instance, networks like Lone Wolf's adWolf program—as seen on page 7 of our 2016-17 Technology Guide—does the work of obtaining locally relevant advertising opportunities that bolster a broker's brand position. Their ads promote value-added services for home buyers and sellers, such as deals on painters or home inspector services in the area—a strategy that has proven to deliver the highest click rate. This brands agents as local experts on moving resources and connects them to a cross-section of vendors to assist their clients through the home buying or selling process.

By publishing ads on their website, brokers who may not otherwise be able to monetize their site traffic can increase traffic while earning dividends. Ad networks handle all of the traffic delivery and ad serving to the broker's website. They make money by taking a portion of the total gross revenue generated from their advertiser conglomerate and pass part of that revenue on to the brokerage, who provides the ad impression. Generally speaking, ad networks pay brokers when an objective is met, such as clicks or impressions.

Ad networks deliver both dollar value and audience scaling without requiring brokers to develop individual deals with thousands of relevant local advertisers. This enable brokers to leverage their consumer facing website and capitalize on user-captured attention and as a revenue opportunity without the costs and efforts of managing their own ad space. Our free Technology Guide is a solid resource for learning more about the role that ad networks play in MLS revenue generation.