Real Estate advertising on Facebook continues to defy 2019’s seasonality trends, and agents and brokers who capitalize on the provided opportunity will see great returns leading into 2021. The below analysis includes data from over 1 Billion ad impressions, behaviors that have generated over 650,000 leads, and metrics from the National Association of REALTORs.
2020 Month over Month Comparison
Comparing month-over-month data from October to November, we recorded a 14% increase in lead conversion rate (CVR). This upward trend continues to defy traditional seasonality in Real Estate, making Facebook advertising a solid option for lead generation programs leading into December.
The cost of media (CPM) increased by 11%. This is to be expected leading into the Black Friday, Cyber Monday, and holiday season landscape.
The cost per lead (CPL) registered a 0% change. With fewer people clicking on ads (2% decline in CTR) and a higher cost of media, the 14% increase in CVR kept the CPL from changing month-over-month.
The Election’s Impact on the MoM Analysis
Facebook put a stop to political ads on November 3rd. The effects of this decision can be seen in CPM and CVR dips a few days before, and after, the election. Looking into the rest of 2020 we are not expecting political ads to have an effect on CPM or CVR.
Year-over-Year Seasonality Analysis
As mentioned previously, real estate advertising on Facebook continues to defy 2019’s Seasonality trends. The above graphic shows major fluctuations in every core metric used in this analysis for the measurement of digital advertising.
Focusing on CVR, the 2019 seasonality graph shows a noticeable uptick in December, showcasing an end of year surge in intent. If this seasonality trend continues through to 2020 and is layered on top of the high intent caused by Covid-19, then December has the possibility to be a breakout month for agents and brokers who advertise on Facebook.
2019 seasonality also shows a decrease in CPM throughout the month of December. If CPM starts to decrease throughout December, and intent surges (as described above), then it’s possible that CPLs will be extremely low in December 2020.
Facebook Lead Ad Correlations
To understand if lead conversion rate on Facebook can be an early indicator of customer demand in the Real Estate Industry, we are tracking the National Association of REALTOR’s Pending Home Sales Index and Existing Home Sales. Below, these metrics are displayed next to Facebook’s Lead Conversion Rate (CVR).
Summary
Traditional seasonality trends continue to be disrupted, proven by the 14% month-over-month gain in CVR. Also, if 2019’s seasonality trends for CPM and CVR are layered on top of 2020’s unique surge in intent, then December is positioned to be a breakout month with low CPLs.
