Recently we had a client, he offered consulting services for property investors and property management. Firstly we set up YouTube campaigns and the client was satisfied. Then he decided to try search campaigns.
We have experience working with the real estate industry in Russia, Europe and the US and it’s a really hard thing to do in search engines. The main problems are:
- The high cost-per-click, which is the consequence of high profits, and due to this the competition that works in the market is used to high rates. They know their historical revenues and conversion rates, they can predict the marketing budget understanding how many leads would they get.
- Delayed value – real estate purchases are a long process, and very expensive clicks that were paid today can make a profit in only a few months. And in order to constantly maintain the number of leads that can later become closed customers, you need to pay here and now.
Based on this, it can be said that it is difficult for a business like a small startup with a small advertising budget to survive in this market.
Here are the approximate rates for this niche in the client’s location and the right CPC column for top positions is very expensive. However, the left values did not suit us either, because the client wanted to start with a $5 daily budget and at best could get 1-2 clicks a day.
Our recommendation is to draw conclusions after at least 200 clicks in the campaign, if there are campaigns for different services/products on the account, then each product, and not the total number of clicks on the account, should accumulate 200 to understand roughly. One more, it is advisable to go 2 times in the weekly cycle, since traffic at different hours and different days of the week is different, especially on weekends.
The client was a little nervous because he couldn’t get a quick result, due to only $5 a day, for 14 days we got about 30 clicks. And since the list of keywords consisted of 30-50 words, each received a couple of clicks and impressions, which can’t be used to build statistics.
In addition, the client had a non-selling site on which he talked about his company and what he was doing (very general information). The site was more like a personal business card with a presentation of himself than a site with useful information on what is real estate investing, how specifically the client can earn, what the work and the cooperation process look like. All these also negatively affected user interest.
What conclusions can be drawn from this particular case:
- Always predict the advertising budget for tests based on 200 clicks on a service/product and a 2-week cycle, to collect primary and somehow reliable information;
- The site should be aimed at the client, and not at the presentation of how good you are. In simple words, you need to write the “Client – you will get this and this from our side, we’ll solve this problem for you”, and not the “Client – see how cool we are”.
- No campaign setup will help if you have a test budget of $20 and the click in a niche costs $1. No hypotheses and conclusions can be made in 20 clicks. Therefore, unfortunately, you need to adapt to the market and best practices in setting up and analyzing campaigns, the market will not adapt to you.