The statistics tell it and there is no doubt that every day the consumption of online video becomes more and more popular and widespread.
So, you have the full right to ask yourself what all the ‘hype’ about videos in the online marketing world is about and if video really does help you sell real estate?
I mean, what matters, in the end, is the bottom line, not a ‘hype’.
And yes, video helps you sell real estate.
Because the retention rate is higher (72% of customers prefer video when it comes to learning about a product or service), revenue can be grown 49% faster.
Also, on landing pages, video can increase conversions by 80%.
But without planning and a good strategy, it won’t be guaranteed that you will sell more just by producing real estate videos.
In today’s article, I will go more in-depth about this question, discuss the pros and cons, and how I came to the above conclusion.
Why You Might Want to Consider Using Videos
In order to draw direct and indirect conclusions about whether video helps you sell real estate, let’s take a look at some video marketing statistics and show you the pros of using videos:
1) 85% of businesses use video as a marketing method (source).
This means that more and more competitors might use this type of content and use all its advantages in the future, meaning more disadvantages for those that don’t use it.
2) The video consumption on mobile phones rises by 100% every year (source).
Indirectly, this means that by not using video, you might reach less and less potential real estate clients through their mobile phones, potentially affecting your sales in a negative way.
3) Videos distributed via social media generates 1200% more shares than text and images combined (source).
On the same note, 92% of users watching video on their mobile phones will share it with others (source).
So, producing real estate videos and distributing them on social media channels is likely to decrease your advertising costs by reducing your costs per click and increasing click-through rates.
4) It is estimated that by the year 2022 more than 82% of all consumer internet traffic will come from online videos (source).
This means that if you want to use internet marketing sales funnels and not leave money on the table, videos should be part of your overall strategy.
5) 59% of executives report that they would prefer watching videos than reading text (https://www.wordstream.com/blog/ws/2017/03/08/video-marketing-statistics)
6) The retention rate is higher for videos.
When watched in a video, viewers can retain 95% of a message in contrast to 10% when reading it in a text (source), and customers (72%) prefer video when it comes to learning about a product or service (source).
This indicates that by using video you will have a better chance for the communication of the benefits of your real estate product (deals, properties, etc.) or services to reach your target customers.
And as you probably know that communicating benefits with the right sales copy leads to sales.
7) It is the type of content with the best return on investment, according to 51% of marketing professionals (source).
Since the return on investment is profits divided by the costs to attain these profits, it proves that you will have a higher profit by using video compared to other types of content marketing.
8) Revenue can be grown 49% faster than for those that don’t use video marketing (source).
This point somewhat confirms the one before and indicates a better starting position to make a sale.
9) After watching a branded social video, 64% of consumers make a purchase (source), and if you use video on a landing page it can increase conversions by 80% or more (source) thus increasing your chances of making a sale.
I am not sure if this can be applied 1:1 to the real estate industry, since this industry has a much longer sales cycle than, for example, e-commerce where you can immediately buy a product online.
But we can assume that for real estate this would mean at least a higher conversion rate from website visitors to serious buyer or seller leads.
Since organic traffic usually leads to lower bounce rates and a longer time on your website, which in turn can increase your website conversion rate, this is another important factor to take into consideration.
11) I already mentioned this in my article about follow-ups.
If you use a video in your first emails or touchpoint, it can increase the click-through rate by 96% (source).
This means you can also better communicate your marketing message with benefits through your follow-ups, which leads to better conversions and thus more potential real estate sales.
12) Visitors will stay longer (88% more time) on your website if you include videos (source), which in turn increases your chances of converting them to customers and thus making a sale.
13) Before visiting a store, about 50% of internet users are looking for videos related to a service or product (source).
This behavior may also have an impact on potential buyers or sellers visiting your real estate office (should you use one for drop-ins).
14) According to 97% of marketers, users gain a better understanding of a product or service by watching videos (source).
This somewhat overlaps with point 6) above, meaning you can better communicate your benefits by video.
15) Using video can be the factor that makes you different from your competition.
You can show your personality better which in itself can already be a differentiator.
But another one is if your competition doesn’t use video at all. Using all the above advantages, you can get an edge over your competition.
16) Some things can be explained easier by video.
Potential real estate buyers, for example, can be walked through a contract or the interior design of a house can be shown easier.
17) Videos can build trust faster and therefore drive deals forward. In a video, you can communicate a lot better than just with text.
It comes closer to a personal meeting, because the potential buyer or seller can also see your body language and your face.
Therefore, it can improve communication during a (difficult) deal, resolve questions and doubts faster and thus increase the chances of a successful deal closing.
Now that I described so many pros you might wonder, aren’t there any cons to video?
5 Downsides of Using Video
This article wouldn’t be complete and balanced if I wouldn’t also include some cons of video marketing:
1) If you produce a video with bad quality (and I am not referring necessarily to the production quality, but the content), it can rather damage your reputation or brand.
If you produce really good content and present it well, you can still get away with lower production quality.
The damage likely occurs when you have bad content and bad production quality.
For example, if you just shoot a short property walk-through video with bad audio and not mention any benefits.
2) There is a chance that you will put way too much effort in video production and make it too long.
You need to take into consideration that about 20% of YouTube viewers leave a video within the first 30 seconds of playback (source).
The reason for this is that they either don’t have enough time to watch the whole video or they watch it from their mobile device (very likely) which uses a data plan.
3) It can take more time, additional skills, and additional costs to produce a good video meaning additional costs to learn those skills and the whole video production process, such as preparation (scripting), shooting, editing, and promoting/sharing.
Additionally, you might have to invest in the right equipment (camera, microphones, editing software, etc.).
4) Evergreen videos are hard to make.
Once you have produced a video, it’s difficult to maintain it evergreen.
Without a lot of work, it’s almost impossible to add new or updated information to an already existing video.
It’s actually easier to just make a new video than put in the work and edit the hell out of an existing one.
This is not the case with a blog post, where changes can be made easier.
5) Although the statistics in the pros section would say otherwise with regards to the video consumer trends, video content might not appeal to all audiences.
Some consumers who are looking for a specific item or have a clear goal for being on your website might prefer text over videos to come to a decision.
So, Does Video Help You Sell Real Estate?
By now, we can derive from the pro video statistics above that video can definitely help you sell real estate.
But there is a caveat.
Just producing a real estate video without some planning and a strategy won’t guarantee you to sell more.
To apply video for your real estate business in a successful way according to the pro and con list from above you should:
- Produce videos that are friendly for mobile users (e.g. not too long)
- Distribute them on social media via social media ads or just normal social media posts
- Communicate the benefits of your products or services via video
- Include videos on your website, and/or on your sales pages
- Explain difficult concepts by video
- Make sure to present good content in a structured way in the video avoiding audio problems
- Have a well-defined video production process beforehand to save time
- Make the video content as evergreen as possible with the right pre-planning
- Make sure you know your target audience, so you can be sure that video will likely appeal to their content needs
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