ADVERTISING

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ADVERTISING CHAPTER 8
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ADVERTISING Advertising is the process of calling
peoples attention to something to arouse a
desire to buy or obtain more information about
the product or service being promoted.
Real estate advertising may be divided into two
major types institutional advertising specific
advertising.
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Institutional advertising attempts to create a
favorable image of the real estate company, the
broker and the salesperson.
Specific advertising, also called operational
advertising, is concerned with immediate results.
It describes a particular piece of property and
stimulates activity in a specific property or an
entire tract of homes.
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THE AIDA APPROACH The main reason for advertising
is to find ready,willing and able buyers.
AttentionThe first step in any type of
advertising is to gain attention. Attention
getters include headlines that use words and word
combinations as well as print and layouts that
attract prospective buyers and encourage them to
read further.
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InterestThe ad should arouse interest in the
specific product or service offered. Probably one
of the best ways to arouse interest is through
curiosity.
Curiosity can be stimulated by ensuring that the
ad allows the reader to imagine using and
enjoying the benefits of the product or service.
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DesireOnce the readers attention is attracted
and his or her interest is aroused, the ad can
create desire by appealing to the senses and
emotions. At this stage, language must be clear
and concise and inspire the readers confidence.
ActionFinally, the ad should move readers to
take action.
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The action desired by a real estate advertisement
is either a phone call, e-mail or fax to you or
your office or an actual visit to your office, an
open house or a project or a visit to your
website for pictures and more information.
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There are five basic tenets of advertising 1. Ad
vertise the right property. 2. Know when to
advertise. 3. Choose the right market. 4. Use
the proper media. 5. Use correct advertising
techniques.
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In determining media choice, the advertiser must
begin with three basic considerations 1. The
target audience to be reached 2. The message to
be conveyed. 3. The money available for media
purchases.
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Because the message cannot contribute to sales
until prospective buyers are exposed to it, the
message must be delivered within sight or earshot
of such prospects.
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In determining the media to be used, ask yourself
the following two questions 1. What are my
marketing goal(s)? To get more sale
listings? To attract more potential
buyers. To increase market share? To enhance
recognition of name? To enhance recognition of
professionalism? To sell listed properties?
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2. Which specific media will reach my target
audience?
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PERSONAL ADVERTISING Personal advertising should
start with a name tag identifying you as a real
estate professional. It should use the same
color as your office signs and business
cards. If you are a Realtor, the title should
be on your name tag.
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Your personal advertising should include your
business card. You want people to be able to
identify your card among a group of cards. The
easiest way to accomplish this is with your
photograph on the card. Your card should include
your e-mail address, fax number and cellular
telephone number.
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Some agents have their own web sites, which
include personal information as well as
information on property they are offering,
frequently with links to other sites.
It is a good idea to print out copies of your
resume with your photograph. You can give them to
prospective buyers and sellers as well as use
them as an enclosure with mailings (both regular
mail address and e-mail address).
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NEWSPAPER ADVERTISING Newspapers are the oldest
advertising medium in the nation and the
keystone of the real estate business.
Because of their tremendous circulation,
newspapers reach all classes of consumers and are
considered by most licensees to be one of the
more effective media. One of the drawbacks to
this form of advertising is that its effective
life span is short.
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All forms of newspaper advertising are important,
but the most common form used in the real estate
business is still classified advertising.
Your classified ad should indicate a website that
offers more information and/or additional
properties.
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Adjectives. The use of adjectives to paint word
pictures of features can enhance the readers
interest. It generally is false economy to write
barebones ads in a competitive market. Often an
ad that is 20 percent longer because of the use
of adjectives earns a response rate that far
outweighs the 20 percent higher ad cost. A
response increase exceeding 100 percent is not
uncommon.
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Lazy Owner Condo (229,500) Not a thing to do in
this, like new 3 BR unit in Cerritos. See
whycheck www.cerritosrealty.com. Cerritos
Realty 476-8200
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Bill Didnt Know That he could buy a 3 BR
Home with less than 2,000 down. Full
price418,500. See what Herman missed
at www.cerritosrealty.com. Cerritos Realty
476-8200
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298,000 Excuse Not To Buy 3 BR, 2-bath. In
with less than 2,000 down in West haven.
With some unusual feature. Check them out at
www.cerritos.com. Cerritos Realty 476-8200
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DISPLAY ADVERTISEMENTS Display advertising may
be either institutional or operational in nature.
It may combine the two, so that it is used
primarily to build goodwill and prestige and keep
the name before the public, while at the same
time advertising a specific property.
We suggest you include an Internet address in a
display ad, which can offer additional
information.
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GENERAL RULES FOR DISPLAY ADVERTISING Most people
read from the upper left corner to the lower
right corner. Therefore, the ad should be
composed with the heading on top, illustration
and copy in the center and firm name and phone
number in the lower right quarter.
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One large picture is generally more effective
than several small pictures.
If reproduced well, photographs may be more
effective than drawings, but most photographs
require professional retouching to increase
contrast, remove distracting features and blur
backgrounds.
Include white space. White space emphasizes the
message.
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Dont use more than two typefaces in an ad.
Ads in the outside columns will generate more
interest than ads in the inside columns.
Typefaces with serifs (the fine lines at the end
of letter strokes) are generally more readable
than sans serif typefaces (without the lines).
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Lowercase letters are easier to read than
capitalletters.
Short sentences are more readable than
long sentences.
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GENERAL RULES FOR DISPLAY ADVERTISING Short
words are more readable than long words.
If you pull the reader through the first three
lines, he or she is likely to read the entire ad.
Use words that are readily understood.
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Dont be too subtle or sophisticated.
Always tell the reader what to do (call, come in
or check the Internet).
Always use the same logo in your ads.
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MAGAZINE ADVERTISING The cost of advertising in
a magazine having mass appeal generally is
prohibitive. However, magazines appealing to
special interest groups could be productive for
the right property.
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RADIO AND TV ADVERTISING Compared with print
media, radio broadcasting is a relatively new
advertising medium but is expensive.
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FOR SALE SIGNS The design of a licensees For
Sale signs should be unique, original, quickly
informative and as attractive as possible. The
attention-getting value of the signs will be
enhanced through the use of color, unique design,
an identifiable logo, and type and size of print.
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DIRECT MAIL Although direct mail advertising is
rather expensive per contact, it can be an
effective way to reach a selective audience. It
may be institutional in nature or be designed to
promote a new subdivision, an area, even a
specific piece of property.
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DIRECT E-MAIL We have shown you several ways to
obtain e-mail addresses of prospects and we will
be showing you more. Direct approach e-mails can
include colored pictures, movements (motion) and
even sound. Like any other advertising, you want
your direct mail and e-mail ads to stand out from
the commonplace.
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NEWSLETTERS Many offices, as well as individual
agents, successfully use newsletters. They
include information that would be of interest to
the recipient as well as information about the
firm or agent.
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Truth-in-lending applies to credit extended with
a finance charge or credit payable in more than
four installments. If the amount or percentage of
down payment, the number of payments or period of
repayment, or the amount of payment or amount of
finance charges (trigger terms) is included in
any advertisement, then the ad must include these
three elements
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• Amount or percentage of down payment
• Terms of repayment
• 3. Annual percentage rate (APR) (the true
  interest rate considering points and other loan
  costs the nominal rate is the rate stated on the
  note)

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ANNUAL PERCENTAGE RATE APR (Annual Percentage
Rate) is the interest rate needed to pay off the
net loan (contract loan less the cost of the loan
points and loan closing costs), fully amortized
using the payment and length of the contracted
loan.
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The APR must meet certain precise figures, if the
lender is audited 1. For fixed rate loans the
APR must be equal to or less than 0.125 (1/8)
of the true APR. 2. For ARMs the APR must be
equal to or less than 0.250 (1/4) of the true
APR.
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With the calculator or computer it is very simple
to calculate the APR. You must have the following
information 1. Loan Amount 2. Interest
Rate 3. Term of the Loan 4. Points 5. Total
Closing Costs
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Example Mrs. Anne Hampton gets a loan from
American Mortgage Co. for 200,000 at 7
amortized over 30 years. She pays 2 points and
4,000 inclosing costs.
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American Mortgage Co. will provide her with the
following statement
American Mortgage Co. Date Today Anne
Hampton11110 E. Alondra Blvd.Norwalk, CA
99999 APR FC AMT TOT 7.409 279,160 250,0
00 479,160
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TELEPHONE DIRECTORIES Although real estate firms
have yellow page listings, often in bold type,
display ads in telephone directories are not
likely to be as cost effective as those in other
advertising media. The effectiveness of your
yellow page ad can be increased significantly by
use of your Internet address, for example, View
Available Homes, www. cerritos. com.
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PRESS RELEASES Press releases are really free
advertisements. If you look in the real estate
section of any newspaper, you will find that most
of the articles are press releases. Your local
newspaper will publish press releases that are
well written, typed double spaced and have a
newsworthy message.
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Some examples of such messages are the grand
opening of an office, the groundbreaking for a
development, the listing of a historic building,
any sale where the buyers or sellers are
newsworthy, special awards or designations
received by agents, and office promotions.
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SPECIALTY GIFTS Most offices include specialty
gifts, promotional giveaway items, in their
advertising budget. These may include notepads,
maps, magnetic holders, calendars, pencils,
directories and pens with a salespersons and/or
firms identification. Such items promote you or
your company continually and can be dispensed
through the office, at business and social
gatherings, at open houses and during
door-to-door canvassing. They are excellent door
openers and can be used effectively to get
acquainted in a neighborhood.
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THE INTERNET The Internet is rapidly growing in
importance as a marketing tool. Today, some
offices are reporting that about 25 percent of
their contacts result from Internet postings.
Surveys of property buyers reveal that in many
areas over 50 percent of the buyers indicated
that they utilized the Internet for their
property search.
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One advantage of the Internet is its relatively
low cost once the site has been established.
However, the Internet cannot be used effectively
as a sole advertising medium because buyers and
sellers need to know of the existence of the site
which can be included in your advertising in
other media.
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While agents can prepare their own web pages
using one of the inexpensive web page programs,
these are usually boilerplate sites and fail to
provide maximum viewer impact. As previously
stated, we strongly suggest that a professional
web page designer create the web site.
A correctly designed website can insure long-term
use and will attract prospective buyers, sellers,
lessors and lessees.
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LEGAL IMPLICATIONS OF ADVERTISING Advertising of
real property is regulated by the California Real
Estate Law, the Regulations of the Real Estate
Commissioner and the Federal Consumer Protection
Act (Truth-in-Lending Act).
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CODE OF ETHICS OF THE NATIONAL ASSOCIATION OF
REALTORS Even though the Code of Ethics of the
National Association of Realtors is a moral code
and not enforced by law, its guidelines are
observed by most real estate licensees in the
state.
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Professional courtesy and ethics should not end
with those acts that have been sanctioned by law.
The individual who tries only to stay on the
border of the law may at some time step across
that border.
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TRUTH-IN-LENDING ACT The Truth-in-Lending Act,
or Regulation Z, a part of the federal Consumers
Credit Protection Act of 1968, requires
disclosure of credit costs as a percent (APR) as
well as total finance charges. It is enforced by
the Federal Trade Commission.