According to a new report released by Borrell Associates, spending on online real estate ads, which occupies only 17.7% of current total online ad spending, will soar to 32.1% in 2010. The “2006 Update: Online Real Estate Advertising” reports that online real estate ad spending has risen less than 4% since 2001. And while the number of homes on the market has increased by almost 41% over the past year, real estate ad spending across all forms of media has remained almost constant at $11.6 billion.
The combination of a saturated home sales market with the decline in print classified ads will cause online real estate ad spending to grow to about $1.7 billion this year, and it will reach about $3 billion in 2010. While spending on online real estate ads increases, the report predicts that the total real estate ad spending will actually drop to about $9.5 billion.
The Borrell report also found that only one in three real estate agents advertised online. 29% of them advertise on local newspaper websites, while 13% of them use paid search ads. Borrell also concludes that newer online classified sites like Oodle, edgeio, and CityCribs, that run real estate ads may be influencing a new online real estate ad market.