Real estate brands cut ad spending, adopt metaverse and other new tactics
In June, Compass began showcasing luxury listings through virtual reality. For example, a three-minute video for a $20 million listing in Kona, Hawaii, immerses prospective buyers, who may be too busy to visit in person. “We expect this technology to continue to play a significant role in luxury listing marketing in 2023 and beyond,” said a Compass spokesman, adding that the company is looking for ways to optimize marketing and advertising dollars.
Online real estate company Opendoor is also getting into virtual reality as it tries to maximize its marketing spend with new types of media, according to David Corns, who joined as VP of marketing last year. In the months ahead, Opendoor plans to test new out-of-home activations along with both national and local media buys, he said. Opendoor’s media agency of record is Deutsch LA.
“The real estate market right now is anything but predictable,” Corns wrote via email. “That’s why we’re trying new approaches to raise awareness and reach customers.”
Zillow recently switched up its approach as well—by appointing a new creative AOR. After a six-month review, the marketer appointed 72andSunny its new agency last month. The shop plans to work with Zillow on “creative campaigns and brand-building initiatives,” a Zillow spokeswoman told Ad Age in December. The shift follows a CMO change at Zillow—last spring, former CMO Aimee Johnson left the brand after more than three years. Marketing is now led by Ravi Kandikonda, senior VP of marketing. Amid a revenue decline, Zillow recently warned of slowing business.
For KB Home, along with enhancing the customer experience, the upcoming metaverse activation will also help the brand collect valuable customer data, Desai said. The company will refresh its experience and model homes and periodically introduce new architectural styles and design choices. Such information could help the marketer make choices for future endeavors and real-life homes.
“We are going to get a rich set of data in terms of who’s coming to the experience and how they are interacting with it,” Desai said.