Advertising revenues decline as Realtor tighten their marketing budgets.

The Washington Post reports that newspapers have been experiencing a significant decline in advertising revenues recently. This has largely been driven by a decrease in spending by Realtors seeking more cost-efficient ways of marketing, but can also be attributed to slower real estate markets in most areas of the country.

The Tribune Co., which is the Number 2 publisher by circulation, reported a 24 percent decrease in advertising revenues for the second quarter of 2007. Tribune publishes newspapers such as the Los Angeles Times, The Chicago Tribune and Newsday in New York. Gannett Co. reported a 9.9 percent decrease and McClatchy Co. reported a 19 percent decrease. 

Traditionally, newspapers and those glossy out-of-date real estate magazines you find around town are extremely expensive to advertise in and provide only limited exposure to homes listed for sale. Most buyers (and sellers) are doing their research online, so savvy Realtors are spending more of their advertising budgets for online activities rather than on print advertising.

Newspaper analysts are seeing this change in advertising preferences as handwriting on the wall, and don’t expect their advertising revenues to fully recover even when the real estate markets get "hot" again. The Washington Post quotes Abby Lee, director of regional advertising in Denver for RE/MAX, as saying, "For our agents, newspapers are an old standby. With younger agents, there’s a trend of going online. There’s a realization that’s where they need to be."

Most home buyers realize that they can find more information on homes available for sale online, with the added bonus of multiple photos and virtual tours so potential buyers can "see" a home before driving out to visit an area. Savvy home sellers will want to capitalize on this get-it-now online presence, since buyers are no longer relying on the traditional method of thumbing through newspapers and magazines.

While most Realtors are still only toying with the concept of online advertising, those who are more aware of the current trends are fully embracing online marketing methods. If your Realtor only has your home shown as a basic listing on Realtor.com, then you’re being short-changed since the basic listings on Realtor.com are populated automatically by the local MLS service. Enhancements are available to Realtors on Realtor.com and there are many, many more websites that buyers will use for their home searches. Always ask how your home will be marketed online before signing a listing agreement to make sure that your home has the best online exposure possible.

Looking for an internet-savvy Santa Clarita Realtor? Contact Linda Slocum at Linda@SantaClaritaRealEstateBlog.com or call her at 661.670.0349.

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