Ads with Keyword Clicks: What’s a Fair Price?
Advertisers usually pay each time someone clicks on their ad, and some keywords – such as “real estate” or “homes for sale” – cost more and face greater competition.
NEW YORK – The average cost of a real estate keyword is usually calculated by its Cost Per Click (CPC) – the amount an agent pays every time someone clicks on their ad. Not everyone who clicks is a potential customer, however, and some keywords cost more than others. Any return-on-investment (ROI) analysis must consider a lot of variables.
CPCs tend to be higher for highly competitive keywords in prime locations or popular markets because of increased demand and competition among multiple advertisers. CPCs are also typically higher for often-used generic and broad keywords, like “real estate” or “homes for sale” because they’re highly competitive and attract a larger audience.
However, CPCs may be lower for more specific and targeted, long-tail keywords, like “3-bedroom condos for sale in New York City,” because they have less competition but potentially higher conversion rates.
Keyword costs also shift due to market conditions, seasonality and other outside influences, and they vary across different online advertising platforms.
To maximize leads and minimize costs, agents should carry out rigorous keyword research with tools like Google Keyword Planner, SEMrush, Ahrefs, Moz Keyword Explorer or SpyFu to get a more accurate estimate of the average cost of real estate keywords for their specific location and target audience.
Source: Realty Biz News (07/24/2023) Shepardson, Ben
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