Facebook has become an integral part of many real estate agents’ marketing strategies. With over 2 billion monthly active users, Facebook provides a huge platform for real estate professionals to connect with potential clients. However, there is an ongoing debate about whether Facebook is truly an effective marketing tool for the real estate industry. Here we’ll examine the pros and cons of using Facebook for real estate marketing.
The Potential Benefits of Using Facebook for Real Estate
There are several key ways that having an active Facebook presence can benefit real estate agents and brokers:
- Increased visibility – With so many active users, having a business page on Facebook exposes your brand to a huge audience. This gives agents the opportunity to reach many more potential clients.
- Lead generation – Facebook ads and promoted posts allow agents to target ads to very specific demographics and locations. This can be an effective way to generate new buyer and seller leads.
- Engagement – Facebook fosters engagement between agents and clients. Agents can share listings, market updates, tips for buyers/sellers, etc to stay top of mind.
- Showcasing listings – Posting listings to a Facebook page or real estate group gives properties broader exposure. This can help generate more showings and offers.
- Less expensive ads – Facebook ads are generally more affordable and cost-effective than print, TV, and radio advertising for real estate.
- Trackable results – Facebook provides analytics and metrics so agents can see exactly how their posts and ads are performing.
With its expansive reach and relatively low cost, Facebook certainly offers real estate professionals an appealing marketing platform on paper. However, simply having a Facebook page is not enough. Agents must invest time and effort into growing their audience and leveraging all of Facebook’s features if they want to fully capitalize on its marketing potential.
Challenges and Limitations of Facebook Marketing
While Facebook has its benefits, there are also a number of important downsides and limitations to weigh:
- Organic reach is declining – Over the past decade, organic reach of Page posts has plummeted. With algorithm changes, Pages now only reach a fraction of their audience without paid advertising.
- Ads can get expensive – Once you factor in the need to boost posts and run ads to reach more users, costs add up quickly. This reduces the ROI of Facebook marketing.
- Engagement is harder – With so much content flooding News Feeds, engaging users has become much more difficult on Facebook. It’s easy for Posts to get lost in the shuffle.
- Time commitment – Managing a Facebook Page, posting regularly, responding to comments etc. is extremely time-consuming for agents and brokers.
- Measurement challenges – Although Facebook provides analytics, it can still be difficult to directly quantify how Facebook activities impact lead generation, sales, and ROI.
- Algorithm changes – Frequent changes to Facebook’s algorithm with little warning can suddenly impact reach and engagement. Maintaining an effective Facebook presence requires constantly adapting.
Agents simply cannot rely on organic Facebook activities alone. Paid advertising is necessary to utilize Facebook effectively, which requires a dedicated budget and social media expertise. This is a key consideration, as smaller brokerages may struggle to leverage Facebook as well as larger franchises.
Best Practices for Real Estate Facebook Marketing
Despite the drawbacks, many top producers still use Facebook successfully as part of their marketing mix. Here are some best practices for real estate agents and brokers using Facebook:
- Focus on engagement over reach – Commenting and sharing others’ content generates 5X more engagement than original posts.
- Mix educational and listing posts – Share market updates, tips, etc. to establish yourself as an expert, not just a salesperson.
- Target ads very narrowly – Target ads by demographics, interests, behaviors, and geography for the best results.
- Retarget website visitors – Create Custom Audiences of site visitors and buyers/sellers who filled out contact forms to serve them targeted ads.
- Automate where possible – Use auto-posting tools to schedule content in advance and save time.
- Monitor analytics – Track metrics on posts and ads to see what content resonates most with your audience.
- Be responsive – Reply promptly to comments and messages to provide good customer service.
- Get reviews – Ask clients for reviews and to like/follow your Page to grow your audience.
- Watch the trends – Notice what competitors and large brands are doing on Facebook to get ideas.
With these tips, agents can overcome some of the difficulties of Facebook marketing. However, it is still important to have reasonable expectations. While Facebook can support lead generation efforts, it should not be the sole focus of an agent’s marketing plan.
Should Real Estate Agents Focus on Facebook Marketing?
Given Facebook’s potential benefits but also considerable challenges, should it play an important role in real estate marketing strategies today? Some key factors to consider include:
- Your target demographics – Facebook tends to skew toward younger demographics, so it may or may not be the ideal platform for your typical clients.
- Your existing audience and engagement – If you have already built a strong local following, Facebook could help further amplify it.
- Your budget – Paid advertising is key for success, so you need ample budget to invest in Facebook ads.
- Your team’s skills – Facebook marketing requires dedicated time and knowledge. If no one on your team has expertise in it, returns may be limited.
- Other marketing channels – Consider how Facebook fits into the rest of your marketing mix across platforms like email, SEO, print ads, etc.
Here are some examples of situations where focusing on Facebook could be advantageous:
- Targeting first-time home buyers – 91% of first-time buyers are on Facebook, making it ideal for buyer lead gen.
- Growing your local followers – Facebook is great for raising awareness and maintaining engagement with the local community.
- Promoting open houses – Facebook Events make it easy to promote open houses and invite prospective visitors.
- Driving traffic to your site – Retargeting Facebook visitors with ads helps drive more repeat site traffic.
In general, most real estate professionals can likely benefit from having some level of Facebook presence. However, agents should be strategic about how they incorporate Facebook into their broader marketing and lead generation programs. Having active social media profiles alone is unlikely to generate significant business. But when paired with other tactics, Facebook can offer another avenue for capturing potential buyers and sellers.
Conclusion
Facebook presents both major opportunities and challenges for real estate agent marketing. While its massive user base offers unmatched reach, declining organic visibility means agents must rely heavily on paid advertising. Successful Facebook marketing requires significant time, money, and expertise. However, incorporating it as part of a multifaceted marketing strategy can help agents expand their audience online. Real estate professionals should not view Facebook as a magic bullet, but rather as one platform that, when leveraged effectively, can contribute to their goals of building awareness, engagement, and leads.