Public Awareness Campaign

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NAR Public Awareness Campaign

• Its Building Business for Every REALTOR!

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Is it working?

• Consumer Study
• Member Study

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Consumer Study
Conducted in August 2000 by Riter Research, Inc.
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Background and Purpose

• Launched in 1998, the purpose of NARs Public
  Awareness Campaign was to
• Promote the value and benefits of working with
  REALTORS in the purchase and sale of real estate
• Promote the professional image of REALTORS
• Discourage the sale and purchase of real estate
  without the involvement of a REALTOR

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Background and Purpose

• A benchmark study was conducted to assess the
  image, attitudes and beliefs toward REALTORS in
  1998.
• A follow-up study was conducted in July/August
  1999 to assess the progress of the campaign.
• This report documents results from the study
  conducted in August 2000

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Research Objective

• The objective of the study was to measure
• The changes in attitudes, beliefs, and opinions
  about REALTORS.
• The changes in the predisposition to use a
  REALTOR in the sale or purchase of real estate.

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Methodology

• Random telephone interviews were conducted among
  10,000 households to identify qualified
  respondents.
• Full interviews were conducted among 900
  qualified respondents during August 2000.
• Respondents interviewed reflected the target
  audience for the campaign.

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The Respondents

• -- Are the primary decision makers within their
  households
• -- Have purchased real estate (commercial or
  residential) in the past 12 months
• -- Plan on purchasing real estate (residential or
  commercial) within the next 12 months
• -- Have an average household income of 69,400
• -- Are about 42 years of age

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Unaided Recognition of the Campaign is Up
Consumers were asked if they had seen or heard
any advertising recently that promoted the value
of REALTORS in the purchase or sale of homes or
real estate Over the past 12 months, recall of
the NAR REALTOR campaign has increased
substantially from 37 to 42
42
37
1999 Study
2000 Study
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Aided Recognition is Up, Too
Consumers were read descriptions of the NAR
commercials and slogan and asked if they recalled
hearing or seeing specific messages or
slogans Recognition of NAR advertising is up
significantly in 2000 compared with1999 -- 45 to
60
60
45
1999 Study
2000 Study
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Consumers Remember the FSBO Spot Most

• Recognition is highest for the FSBO (For Sale
  By Owner) execution

CAMPAIGN EXECUTION RECOGNITION
(Based on Description)
FSBO
34
Restaurant Owner
28
26
Paramedics
13
More Believe in Benefit of Working With a REALTOR
There has been a substantial increase in the
proportion of consumers who believe there are
benefits to working with a REALTOR vs.
working with an agent who is not a member
51
42
2000 Study
1999 Study
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Those Who Know About the Ads, Like REALTORS
Better
Consumers aware of the NAR campaign were more
likely to perceive a benefit of working with a
REALTOR than a real estate agent who is not a
member
Aware of NAR
54
Advertising
42
Not Aware of NAR
Advertising
15
Those Who Know About the Ads, Are More Likely to
Use a REALTOR
Those aware of the NAR campaign are more likely
to consider using a REALTOR than those who do
not recall seeing/ hearing the NAR advertising
55
45
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Those Who Know the Ads, Think More Highly of
REALTORS
THOSE WHO SAID REALTOR BEST FITS DESCRIPTION
Not Aware
Aware
Difference
Best qualified to promote sale of your
home Professional Experienced
45
59
14
45
57
12
45
56
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Best qualified to find home that meets your
needs Getting the job done properly Expert in
home financing Getting you the best
price Responsive Works hard for clients
45
55
10
40
55
15
43
53
10
38
47
9
33
43
10
33
41
8
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More People Attribute Positive Qualities to
REALTORS

• Consumers who feel REALTORS best fit the
  attributes used to describe professionals
  involved in the buying and selling of real estate

1999 2000 99-00 Change NA 55 43 54 11 NA
53 NA 52 37 51 14 41 50 9 26 45 19 24 40
16 23 39 16
Best qualified to promote sale of your
home Professional Experienced Best qualified to
help find home that meets your needs Getting the
job done properly Expert in home
financing Getting you the best price Responsive Wo
rks hard for clients NA not included in 1999
study
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FSBOs Are Going Down
Despite the growing importance of the Internet in
todays real estate market, the percentage of
consumers who say they would attempt to sell or
buy a home on their own has declined
1999 2000 Study Study
Buy or sell yourself, not use an agent
29 24
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Those who Know the Ads, Are More Likely to Use
a REALTOR
Likelihood of Behavior if Buying or Selling a
Home
Aware of NAR
Advertising
Yes
No
55
39
Use a REALTOR
Buy or sell yourself without an agent
6
5
Use real estate agent who is not a REALTOR
22
29
16
28
Not sure
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Member Study
Conducted in August 2000 by Riter Research, Inc.
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Methodology

• National telephone study conducted among 502
  members selected at random from NAR membership
  list.
• Telephone interviews were conducted between
  August 7 and August 28, 2000.

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Members Believe NAR Helps Them Sell More Real
Estate

• There has been an increase between 1999 and 2000
  in the number of NAR members who believe their
  membership helps them sell more real estate.

44
39
1999 Study
2000 Study
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Member Awareness of Campaign is Up

• Between 1999 and 2000, there has been an increase
  in the number of members aware of the NARs
  efforts to promote the value of REALTORS to
  potential buyers and sellers

64
59
2000 Study
1999 Study
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Member Awareness of Slogan is Up, As Well
AIDED AWARENESS OF NAR THEME / SLOGAN
"You've Got a Life. We Let You Live It. We're
REALTORS. Real Estate is Our Life..
66
57
1999 Study
2000 Study
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The FSBO Spot is Most Recognizable

• When read descriptions of three NAR spots,
  REALTORS remember the FSBO spot more than the
  others, which may be because that ad ran more
  frequently than the others this year

RECALL SEEING / HEARING EXECUTION--Aided Awareness
51
FSBO
42
Paramedics
39
Restaurant Owner
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More REALTORS Now Recognize the Campaign

• NAR members were significantly more likely to
  recall or see NAR advertising in 2000 vs. 1999
  (Aided awareness)

84
67
1999 Study
2000 Study
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REALTORS Want to See More Advertising

• The proportion of members who would like to see
  more NAR advertising has increased since the 1999
  study

86
79
1999 Study
2000 Study
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They Are in Favor of Continuing the Assessment

• 87 of REALTORS favor continuation of the 15
  assessment to pay for the NAR advertising campaign

Oppose -- 13
Favor -- 87
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Assessment Elasticity

• Support for increasing the current assessment is
  directly related to the amount of the increase

87
WOULD FAVOR ASSESSMENT
60
47
35
15
20
25
30
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Why We Needed a 5 Increase

• Advertising costs have risen nearly 30 since the
  campaign began.
• If we had kept the assessment at 15, in 2002 we
  would have had to cut back the campaign
  substantially.
• By increasing the assessment to 20 in 2002, we
  will be able to keep the campaign at the current
  level

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Media Costs Have Risen
Media cost-per-thousand has increased an
average of 9.4 each year since introduction of
the Public Awareness Campaign
1999 2000 2001 Network TV 7.0 12.5 6.
6 CableTV 11.9 16.4 9.0 Network
Radio 7.0 8.0 6.0 Average/Year 8.6 12.3
7.2 Three Year Average 9.4
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More Bucks--Bigger Bang( of Weeks)
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More Bucks--Bigger Bang( of Spots)
4,000
3,849
3,834
3,800
3,563
3,600
3,361
3,400
3,200
3,000
2000
2001
2002
2002
15
20
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More Bucks--Bigger Bang( of Impressions in
thousands)
2,575
2,645
2,461
2,287
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NAR Board Decision

• Continue the campaign through 2004
• Increase the annual assessment by 5 beginning in
  2002

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Looking Ahead

• Current ads will continue next year
• New commercials will air in 2002
• 5 increase will not take effect until 2002

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