The US Census Bureau recently revealed that the US homeownership rate declined to 62.9%, the lowest level reported in 51 years of Census tracking.
This statistic does not signal impending doom. Since 2006, there has been a decline from peak ownership rates which is attributed in part to responsible lending practices and shifting demographic patterns. What is significant about this statistic is that it can give those intent on homeownership the false impression that they are fighting a losing battle.
If you’re on the non-homeowner side of this statistic, does this spell opportunity for you? With the economy and employment gaining strength, and predicted home-buying demographic shifts, homeownership may start an upward swing.
If you don’t own your own home, you know there are reasons why not. Since my work dictates I challenge the best to become better, I ask you, “How sure are you that those reasons are still valid or insurmountable?”
Repeatedly, when I speak to audiences about becoming their own futurist and creating strategies to achieve the future of their choice, I frequently meet people – individuals, couples, families, groups – who did not realize that their future could include homeownership.
Because they did not consider ownership a possibility, they gave up investigating, learning, strategizing, acting, and dreaming to make it happen. So it did not.
Ask any real estate or financial professional, and they won’t hesitate to tell you that home ownership is, rarely if ever, achieved by those who make no effort or take no action in that direction.
Any “short cuts” lie in understanding exactly what effort and action are required for the most direct path to ownership success. That’s what real estate professionals are trained to know all about. They understand how to relay that information to willing buyers and sellers.
Interview real estate professionals until you find one with the right mix of experience and determination to assist you with your ownership goals.
Listen and take notes or record when this professional explains your options and how to achieve your ownership goals. If you ask questions, you will also receive details about various ownership options, including cooperatives, condominiums, and other alternatives available in your area and price range. More questions and you’ll discover how the purchasing process works.
Consider the full range of neighborhoods and communities within your area. Prices tend to go down the further out you go from city center. With good public transit, moving to the suburbs may not require as many sacrifices as you might think.
If you’d like to own your own home, this may be the right time for action.
There are a number of ways to increase your purchasing power and bring real estate ownership within reach. The important thing is not to give up on making an effort before you have explored opportunities available to you in this real estate market:
Interest rates have not risen as dramatically as they are predicted to do in the future. Waiting until rates rise will limit the size of mortgage you qualify for. Mortgage brokers can explain how much you’ll qualify for and how you may be able to improve that level of financing. When you purchase, aim for the longest term you qualify for without seriously compromising purchasing power. That way you’ll have years at a rate you can afford while the mortgage debt is declining.
Debts can reduce the size of mortgage you qualify for, but financial professional advisers can suggest do-able debt-reduction strategies to improve borrowing power.The first step may be reducing the accumulation of new debt by ending discretionary spending like impulse shopping, eating out, and holiday travel.
The real estate you purchase may become a “financial partner” in achieving ownership. For instance, buying a one or two-unit rental income property may raise your qualifying income by some or all of the rent the rental unit or units would bring in. This financial leverage may also be possible in a non-rental property if you can prove you have boarders who will move in with you, pay rent, and share expenses.
Uncertainty abounds, but the economy continues to build momentum and job prospects continue to improve. Untapped income opportunities may exist. When was the last time you explored new employment and education opportunities with your current employer or within your community? Having a job that is “just enough” to keep you going can create inertia that defeats your belief that there’s more out there for you if you persist.
Realtytimes.com contains a rich library of articles to answer your questions and help you explore alternatives. Below are a few from my ongoing column “Decisions & Communities” that reveal the range of opportunities available to those on the path to homeownership:
As you research ownership ideas and opportunities, stay skeptical. Ask for details and persist until you understand exactly what you and others involved will be responsible for. Beware of anyone promising overnight success or cheaper-than-believable housing. Stick with professionals who have verifiable credentials and proven expertise.
Since the downturn, you’ve had years to consider homeownership. Is it time for action before rising interest rates and increasing demographic demand move real estate ownership further out of reach?
He’s married with a young child and handles all the responsibilities that come with being a husband and dad.
He blogs regularly about productivity and expert performance.
And yet he finishes work at 5:30PM every day and rarely works weekends.
No, he does not have superpowers or a staff of 15. Okay, let’s you and I both stop being jealous of his productivity for a second and learn something.
Below you’ll get Cal’s secrets on how you can better manage your time, stop being lazy, get more done — and be finished by 5:30. Let’s get to work.
1) To-Do Lists Are Evil. Schedule Everything.
To-do lists by themselves are useless. They’re just the first step. You have to assign them time on your schedule. Why?
It makes you be realistic about what you can get done. It allows you to do tasks when it’s efficient, not just because it’s #4.
Until it’s on your calendar and assigned an hour, it’s just a list of wishful thinking.
Scheduling forces you to confront the reality of how much time you actually have and how long things will take. Now that you look at the whole picture you’re able to get something productive out of every free hour you have in your workday. You not only squeeze more work in but you’re able to put work into places where you can do it best.
This study was designed to identify the relationship between free time management and quality of life, exploring whether the amount of free time or the way people using their free time relates to their quality of life… The result has found a positive relationship between free time management and quality of life.
(For more on the schedule the most productive people use, click here.)
Okay, the to-do list is in the trash and things are going on the calendar. How do you prioritize so you’re not at work forever?
2) Assume You’re Going Home at 5:30, Then Plan Your Day Backwards
Work will fill the space it’s given. Give it 24/7 and guess what happens?
You need boundaries if you want work/life balance. But this also helps you work better because it forces you to be efficient.
By setting a deadline of 5:30 and then scheduling tasks you can get control over that hurricane of duties.
Cal calls it “fixed schedule productivity”:
Fix your ideal schedule, then work backwards to make everything fit — ruthlessly culling obligations, turning people down, becoming hard to reach, and shedding marginally useful tasks along the way. My experience in trying to make that fixed schedule a reality forces any number of really smart and useful in-the-moment productivity decisions.
Over and over, scientists see that the perception of control over a stressor alters the stressor’s impact.
(For more on how to achieve work/life balance, click here.)
You’ve drawn a line in the sand and worked backward, giving all your tasks hours in your day. But how do you handle longer term projects?
3) Make A Plan For The Entire Week
I think you’ll agree that the last thing this world needs is more short term thinking.
You’ll never get ahead of the game by only looking at today and never thinking about tomorrow.
How do you write books, teach classes, meet with students, do research papers and be a good parent consistently? Plan the week.
People don’t look at the larger picture with their time and schedule. I know each day what I’m doing with each hour of the day. I know each week what I’m doing with each day of the week and I know each month what I’m doing with each week of the month.
Are you rolling your eyes? Does this sound overbearing? It’s simpler than you think. What’s really necessary?
Just one hour every Monday morning. Here’s Cal:
Every Monday I lay out a plan for the week. I go through my inbox, I go through my task list, I go through my calendar and try to come away with the best thing to do with each day this week. I write it in an email and I send it to myself and leave it in my inbox because that’s a place I know I will see it every day and I’ll be reminded of it multiple times throughout the day.
Preliminary analysis from CEOs in India found that a firm’s sales increased as the CEO worked more hours. But more intriguingly, the correlation between CEO time use and output was driven entirely by hours spent in planned activities. Planning doesn’t have to mean that the hours are spent in meetings, though meetings with employees were correlated with higher sales; it’s just that CEO time is a limited and valuable resource, and planning how it should be allocated increases the chances that it’s spent in productive ways.
Maybe you think it’s enough to run down the week’s duties in your head. Nope.
You’re judged on what you do best so if you want to have as much success as possible you’re always better off doing fewer things but doing those things better. People say yes to too much. I say no to most things. I’m ruthless about avoiding or purging tasks if I realize they’re just not providing much value.
You feel like you have no time but John Robinson, the leading researcher on time use, disagrees. We may have more free time than ever.
He insists that although most Americans feel they’re working harder than ever, they aren’t. The time diaries he studies show that average hours on the job, not only in the United States but also around the globe, have actually been holding steady or going down in the last forty years. Everybody, he says, has more time for leisure.
So what gives? It feels like you have no time because it’s so fragmented with little annoying tasks that drain the life out of you.
(For more on what the most successful people do, click here.)
Your plans are in order and by doing less, it all fits on the schedule. But one question remains: what exactly should you be doing with your time?
5) Less Shallow Work, Focus On The Deep Stuff
All work is not created equal. Cal says knowledge workers deal with two fundamentally different types of work, Shallow and Deep:
Shallow work is little stuff like email, meetings, moving information around. Things that are not really using your talents. Deep work pushes your current abilities to their limits. It produces high value results and improves your skills.
And what’s the problem? Most of us are “drowning in the shallows”:
People who are the most busy often are getting a lot less done of significance than the people who are able to stop by 5PM every day. That’s because the whole reason they need to work at night and on the weekends is because their work life has become full of just shallows. They’re responding to messages, moving information around and being a human network router. These things are very time consuming and very low value.
Nobody in the history of the universe ever became CEO because they responded to more email or went to more meetings. No way, Bubba.
Cal has it right: Shallow work stops you from getting fired — but deep work is what gets you promoted.
Give yourself big blocks of uninterrupted time to make things of value. What’s the best first step?
…whenever possible, do not check email for the first hour or two of the day. It’s difficult for some people to imagine. “How can I do that? I need to check email to get the information I need to work on my most important one or two to-dos?”
You would be surprised how often that is not the case. You might need to get into your email to finish 100% of your most important to-dos. But can you get 80 or 90% done before you go into Gmail and have your rat brain explode with freak-out, dopamine excitement and cortisol panic? Yes.
(For more on how to motivate yourself, click here.)
So how do we tie all this together?
Cal’s five big tips:
To-Do Lists Are Evil. Schedule Everything.
Assume You’re Going Home at 5:30, Then Plan Your Day Backwards
Make A Plan For The Entire Week
Do Very Few Things, But Be Awesome At Them
Less Shallow Work, Focus On The Deep Stuff823
Schedules and plans sound cold and clinical but the end result couldn’t be farther from that.
You’ll be less stressed, create more time for friends and family, and make things you can be proud of.
Knowledge work is really just craftsmanship. It’s just that what you’re crafting is information and not carved wood. You’re crafting ideas. You’re crafting knowledge out of raw material and the more you think about it like a craftsman, the happier and more satisfied you’ll be, not to mention more successful.
The offices of the world could use a few less cubicle drones and a few more proud craftsmen.
Five blacktip reef shark pups have recently became a part of the marine life at Maui Ocean Center.
At approximately two feet in length, the pups will reside in the Deep Reef exhibit for about a year before they’re released as juveniles back into the ocean. Upon arrival, the pups received a blessing.
A team of aquarists lead by Head Curator John Gorman observed the sharks throughout their quarantine process to ensure they remain in optimal health. Gorman said the sharks have successfully acclimated to their new environment.
Blacktip reef sharks are opportunistic feeders, scavenging the ocean floor for crustaceans, squid, octopus, and bony fish.
Aquarists at the Maui Ocean Center say the species gathers nearshore during the summer months to establish pup nurseries where shallow waters help to protect the pups from larger ocean predators.
The Maui Ocean Center is currently home to nearly 20 sharks and 5 species.
“People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.” – Zig Ziglar
Sometimes you just need a dose of confidence or a boost in your motivation. Selling and buying real estate is hard. But if it is something that you love, you can’t imagine doing anything else. Still, few things can recharge your passion like a good inspiring real estate quote so we found 10 of them to keep you inspired.
10 Inspirational Real Estate Quotes
#1: “To be successful in real estate, you must always and consistently put your clients’ best interests first. When you do, your personal needs will be realized beyond your greatest expectations.” – Anthony Hitt
The best real estate agents in the business have a knack for anticipating their clients’ needs and matching those needs with the right piece of real estate. When you put your clients’ interests first, you will succeed in real estate.
#2: “Real estate is my life. It is my day job, if you will. But it consumes my nights and weekends, too.” –Ivanka Trump
Unlike most other jobs, real estate really has no set hours. You are working around the clock most days but because you love it, you don’t mind. Still, take time to recharge so that you don’t burn out.
#3: “Real estate is an imperishable asset, ever increasing in value. It is the most solid security that human ingenuity has devised. It is the basis of all security and about the only indestructible security.” – Russell Sage
Even at the height of the housing collapse, people were snatching up distressed properties and trying to turn lemons into lemonade. Real estate is an imperishable asset in times of prosperity and times of financial distress. There are always people looking for it.
#4: “The problem with real estate is that it’s local. You have to understand the local market.” – Robert Kiyosaki
#5: “I think if people are passionate about something, it could be real estate or biochemistry, and that spark gets turned on in them, everyone’s beautiful in that zone.” – Cindy Crawford
A person in love has a glow just like an expectant mother does. When you love what you do, it shows in your face, in your smile, in your demeanor. The most passionate real estate agents tend to be the most successful and attitude is at least 50% of that success.
#6: “Commercial real estate always trails residential, and as residential growth flourishes, shopping centers flourish and service the communities, and jobs come out.” – Johnny Isakson
As a residential real estate agent, you are an integral part of the success of a city or community. When you bring in families, businesses come in to serve those families. You are a crucial part of the circle of life.
#7: “You must learn that selling is not selling; it is providing and the key to providing is knowing in advance what to provide.” – Todd Duncan
Again, meeting your client’s needs will go a long way to securing your success in the real estate business.
#8: “Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful.” – Albert Schweitzer
Money can’t buy you love or happiness. Making a lot of money is not the definition of success. You can have a billion dollars in your bank account and be miserable. Do what you love and happiness is sure to follow.
#9: “In real estate, you make 10% of your money because you’re a genius and 90% because you catch a great wave.” – Jeff Greene
Part of being the best real estate agent is knowing your market. Still, having a little bit of luck doesn’t hurt either.
#10: “Real estate is the best investment in the world because it is the only thing they’re not making anymore.” – Will Rogers
Good News to Keep You Inspired
We hope you really enjoyed those quotes. Hopefully you can come back to this piece throughout the year to re-inspire yourself or better yet, memorize them so that you will always have them within you as a source of inspiration.
The disconnect between marketing and sales teams has long been an industry-wide, hot-button issue, with both sides claiming communication is key but typically shying away from any real-world, concrete solutions for creating that communication. In fact, according to a recent study by Demand Gen, 49% of marketers and sales executives agree that communication is the biggest challenge in aligning teams.
But research shows that business booms when marketing and sales can overcome the gap between the groups for the good of the brand. An Aberdeen Group study found that businesses with highly aligned sales and marketing teams earned an average of 32% year-over-year growth, while those who reported less alignment saw a 7% decrease in revenue. Ouch. Takes alignment out of the nice-to-have category and puts it squarely at the top-of-the-growth agenda.
If aligning marketing and sales teams is so critical for growth, then how come it’s so hard to get the two groups together to focus on a clear content marketing strategy? The solution could lie in setting clear goals, outlining what each side wants from the other, and then using those goals for content creation.
Create content that brings better leads
When Demand Gen asked sales what they most wanted from marketing, the No. 1 answer was better quality leads, followed closely by more leads. And there’s plenty of evidence to support the idea that better content equals better leads, since most buyers are already nearly a third of the way through their journey before they even contact sales teams. The further online the buyer’s journey goes, the greater the responsibility is for marketing to create effective content that supports that journey.
Content that educates the buyer and stands out from competitors is crucial in this initial phase, and I have to say here, this is where interactive content has made all the difference for us. Research has shown that interactive content is 93% effective at educating the buyer (more than double static content), and it’s 88% effective at differentiating brands from competitors (more than a third better than static content).
But what’s seldom discussed is that interactive content, like ROI calculators and assessments, can act as invaluable tools in a sales associate’s arsenal for gauging where customers are in their life cycle and making sure that they’re getting personal, relevant attention as soon as they’re ready for it. As marketer Mark Yeager recently wrote, “Content fails when you create materials that speak to very broad audiences.” And static, impersonal content meant to appeal to the masses could be failing not just your customer, but also your sales team.
Help sales break the ice
As anyone who’s sheepishly deleted a failed tweet or an unloved Instagram can attest, it can be difficult to drum up interest from relative strangers. What most savvy sales teams quickly realize when they start integrating great content into their strategies is that opening gaffes are more easily avoided with interactive content.
Studies show that the majority of customers prefer custom content, so it stands to reason that they would also like sales teams to show a personal interest in their unique needs and preferences during the sales process.
Let sales in the loop
While we’re on the subject of communication between the sales and marketing teams, let’s look at what marketing wants from sales. According to the same Demand Gen study, 34% of marketers want better lead follow-up from sales teams, which seems ironic since sales mostly wants better leads from marketing. The problem is somewhere in the middle – a failure to use audience interaction with content in meaningful ways.
For example, when potential customers interact with content, be it testing their knowledge in an assessment built into a white paper or taking a quiz built into a blog post, they’re giving brands a clearer picture of what kind of engagement they want. However, failure to acknowledge that engagement is a missed opportunity – be it from a marketer who doesn’t use audience data to create more relevant content in the future or the sales associate who doesn’t follow up with a lead whose answers indicate she’s ready to buy.
A unified approach to data from interactive content creates a feedback loop that can be useful to every aspect of the buyer journey, from lead gen to closing the deal. Great insights from content interactions don’t do anyone any good if sales doesn’t have that hustle, hunger, and fire to follow up when they see a great prospect content interaction.
In the end, sales and marketing want the same things: better leads and more relevantconversions with ready buyers. Giving the sales team interactive content serves both purposes by providing data about where buyers are in their journey and acting as a gateway to further communication. And the result may very well be a 70% boost in conversions, which is definitely worth starting a conversation.
Associates at flooring companies wear different hats. They assist in designing an important aspect of a customer’s house. Installers also enter and work within a customer’s home. This process can either be intrusive and stressful or fun and exciting. Outstanding service drives the customer experience in a positive direction.
1.) Prioritize Customer Relations Over Singular Sales
When interacting with customers, think in the long term. Never coerce someone into buying a product they don’t really want/need. Instead, make sure customers leave knowing they have received quality advice. Satisfied customers will come back and purchase more products in the future.
2.) Admit Mistakes
If you’ve made a mistake, own up to it. A meaningful apology will ease tensions with customers. After apologizing, make an effort to remedy the situation. Being stubborn and accusatory is the easiest way to lose customers.
3.) Follow Through on Promises
Customers are looking for a business they can trust. The simplest method of gaining trust is staying true to your word. Honor business promotions and deals. Show up on time. Would you want a flaky person in your own home installing your own floors? Of course not!
4.) Know Your Stuff
Make sure your customers are getting the best information possible. Be knowledgeable in your product, the pros and cons of different flooring, your supply etc. Not knowing the answers to basic questions is unprofessional and disheartening to customers.
5.) Be Responsive
People don’t like to be kept waiting. Respond within the day to phone and email inquiries. Most people won’t wait around for a call back and will just take their business elsewhere. Also, make sure to offer assistance to customers immediately when they enter the store. Customers should never have to work hard to seek out help.
6.) Be Pleasant
The experience of buying and installing floors can be fun or a pain. You guide this process. Be enthusiastic, kind, and efficient. You don’t want to be responsible for adding stress into a customer’s life. Be someone who a customer wouldn’t mind spending a few hours with.
7.) Be Grateful
Your customers had the choice to go to any flooring company and they chose yours. Be thankful! Make sure that your customers know you appreciate and cherish their business.
Great customer service isn’t an exact formula. Utilize these tips and tricks to leave your customers satisfied and excited to return in the future.
Pew Research Center found that 77 percent of older Americans need someone to assist them in the process of learning new technologies.
Technology has provided tools that real estate agents can use to drive sales faster.
An Elon University study found that 92 percent of student respondents agreed that technology has negative effects on face-to-face communication.
Technology has not been around for a long time, but it seems to have conquered every aspect of our lives. The real estate industry, though still a little defiant about the impacts of technology, has seen this new phenomenon influence in recent years.
Others who belong in older age groups, however, are not so keen on accepting the changes. Non-techie baby boomers still find it difficult to abandon the traditional methods that they have grown accustomed to.
They are hesitant to receive without a pang of misgiving the new technologies that they barely recognize. But why is this so? Here are several the reasons some people have a hard time catching up with technological advancement.
1. Lack of understanding of technologies
New real estate technologies have recently sprung. Among the most popular today are mobile tools such as smartphones and tablets, which both real estate agents and clients use for faster transactions.
Other technologies that are catching the interest of millennial clients are mobile collaboration apps, e-signature technology and responsive interface design websites for real estate companies.
For instance, DMCI Homes, a Philippine-based real estate developer has various websites and blogs that cater to the needs of its growing client base. Other companies are carrying out the same strategy.
To put it in the words of Pam O’Connor, president and CEO of Leading Real Estate Companies of the World, “At the minimum, most brokerages have developed mobile versions of their website, and now many are creating specific mobile apps.”
Although all of this might sound exciting to a young techie, the older segment of real estate clients are not so thrilled. They have grown so familiar with the classic telephone method of sealing a real estate deal, that they find it quite a challenge to transition to these new means.
They find technological applications too complicated, so they shy away from them. In fact, according to a study conducted by Pew Research Center, 77 percent of older Americans need someone to assist them in the process of learning new technologies.
2. Familiar comfort with traditional methods
Despite the rise of technological trends in the recent past, traditional modes are still strong in the real estate industry. Steak dinners, offline transactions, flyers, property auctions, open houses, real estate booths, and newspaper ads are still preferred by the older groups who venture into real estate.
These traditional methods are more expensive and time-consuming, but many still prefer it over the mobile way.
“Some clients didn’t want to upgrade their technology and cling to their paper processes,” said Brad Charnas, president and owner of Charnas Appraisal.
Baby boomers might acknowledge the benefits of using technology in real estate dealings, but they cling to the traditional means, and they just settle for what they are already comfortable with.
They would rather not explore something new that takes them out of their comfort zone. Because the shift to technology is a little stressful, they go for the traditional method instead.
3. Limited educational online resources about real estate
How has technology changed real estate? Undoubtedly, technology has contributed some significant improvements to the real estate industry.
For one, it has fused personal interaction and digital communication to make the process more holistic and dynamic. Technology has provided tools that real estate agents can use to drive sales faster and that clients can take advantage of to compare deals.
Technology has proven its worth in providing information and dispersing knowledge, but it appears that none of this is enough. Even in the virtual real estate pool, no chunk of information can replace the hands-on learning experience that the traditional method provides.
You might find a hundred resources over the web, but none of them will be enough to supply you with everything you need to know about real estate. True learning comes with real interaction.
As Spencer Rascoff, CEO of Zillow, said, “When push comes to shove, and it comes time to sell their home, the transaction is so infrequent and so highly emotional and expensive — and consumers are so prone to error — that they turn to a professional.”
With a program, you can’t fully assess your progress in learning, but with a human adviser, you can have a better perspective on things.
4. Fear of falling prey to online scams
The internet is crowded with a lot of information — some of it is relevant, and some is not. Of all the sites found on the web, the ones that are just meant to trick and swindle helpless victims are few and far between. This is why the non-techie client base of the real estate industry is entitled to dislike new technologies.
Scams that can potentially wreck a person financially, psychologically and emotionally are all over the web. If the terms of that condo for sale sounds too good to be true, it might be a scam.
Sketchy advertising is a common identifier of shady deals. When you’re not sure if the buyer of your condominium is a scammer or not, do further research and report the person to an authority.
But remember to do this only when you have significant evidence that the person is not legit. Otherwise, just block further communication with the person.
It is natural for older clients to steer away from something that they deem to have a high-risk factor. It’s better to use a system that is outdated but more reliable than use a new way that can cause serious damage.
5. Need for personal advice from real professionals
“We will never be a point-and-click industry,” Phil Faranda, owner of J. Philip Real Estate in Westchester County, New York, said. “You will always need a trusted adviser to ensure that you get the best terms possible. The stakes are so high. If you want to do a do-it-yourself project, build a hovercraft.”
He could not have been more right. Indeed, this is exactly the reason real estate companies have not killed off their brokers.
Despite the growing popularity of technology in the millennial sector, almost everyone still agrees that it is not always the answer to every problem. Technology has its own downsides, too.
In a study conducted by Elon University, 92 percent of student respondents agreed that technology has negative effects on face-to-face communication, and that is despite the fact that 97 percent of them bring their mobile gadgets wherever they are.
If millennials themselves understand the adverse effects of technology on their personal interactions, how much more do non-millennials? It’s easy to see how technology has changed the real estate industry.
Nonetheless, baby boomers still prefer real estate agents over lifeless screens because they need somebody to help them with price negotiations, paperwork, financial arrangements and other technical duties. But most importantly, they need the guidance of a trusted real estate agent to help them make the right decisions when buying or selling a property.
These are only five of the reasons some people still hold on to the traditional methods of doing business. New real estate technologies might be convenient for some, but the industry should also consider those who are not comfortable using them.
As Rich Barton, founder of Expedia and Zillow, said, “It was obvious to us, regardless of how relatively frustrated consumers were with the whole process, how important that agent relationship was to customers. No robots were going to eliminate the agents.”
On May 24, 2016, Google announced the most significant changes to AdWords since, well, the invention of AdWords. It’s the second momentous change Google has made this year, after phasing out of the right-rail ads that started testing at the end of 2015 and became official this February. Now we’re looking at a substantial redesign. It begs the question “Why do these changes matter?” There are an incredible nine billion text ads on Google. These ads are a lifeline for innumerable businesses, and any change to them means these advertisers — mom-and-pop shops, mid-market businesses and and billion-dollar global brand giants — will have to react quickly, and probably spend more marketing dollars, to adjust and profit.
Most of what you’ve read so far about why Google decided to do this is accurate. User behavior has changed due to the searcher’s move to mobile, which has outpaced desktop searches. Right rail — or sidebar — ads don’t render properly on a mobile device. These ads aren’t maximizing clicks or transactions — which doesn’t bode well for Google or advertisers. Ads on the top of the search results page make everyone happy: consumers click and transact, while Google and advertisers profit.
But with this change come challenges and opportunities. With Google’s new format, there are only four ads on the top of the search results page versus up to three ads on top, with another seven ads on the sidebar with the old format. With less real estate to compete with, advertisers that respond quickly to the changes will win big.
The new ad format allows for expanded text on the top line (headline) of over 30 extra characters, an extra “path” on the URL (line 2), and extra characters totaling 80 on the last line (description line). But advertisers, be warned: mushing line one and line two descriptions together won’t work. Most advertisers write the two lines of text as separate ideas, and when they are pushed together these logically don’t flow as a cohesive message.
Advertisers that move quickly and adapt to the new format stand to benefit in two ways. First, advertisers that leverage the additional creative real estate can weave in new messages as they communicate to their customers that result in more clicks and purchases. Second, ads in the new format will look more aesthetically appealing compared to the older ads that do not read properly, which are displayed by advertisers that don’t switch over.
More Work Than You Think
As mentioned, Google has more than 9 billion ads at its disposal. Sure, some are created by templates so the number of unique ads is smaller, but we’re still talking about rewriting billions of ads, no matter how you slice it. Google has not publicly offered assistance for advertisers to tackle this issue. A significant amount of rewriting is required no matter how many unique or templated ads online advertisers use in their campaigns.
Don’t bet on technology to solve this for you either, given the aforementioned challenges with merging two separate ideas together. I’ve personally tried this approach, and it won’t work. I’ve spoken with big companies in the search ecosystem that can’t get this to work either. Google has indicated that the deadline for completing the rollover to the new formats is some time this fall. Multiple ads per ad group, multiple accounts, and many, many templates can only mean one thing: lots and lots of work.
It Will Cost You
Enterprise and SMB companies don’t have resources waiting on standby for work like this to pop up. Google’s AdWords change will mandate hiring internally, or partnering with an existing agency or starting a new agency relationship. Let’s do some math:
Writing costs on average 20 cents per word for time for the writer. The average word has six characters, and there are approximately 45 extra characters that Google is offering up (5 extra characters for Headline 1; 30 extra characters for Headline 2; the extra “path” on the URL line; 5 extra characters on the longer description line). Extra time and writing are also required to ensure that the new ad makes sense. The cost of redoing one ad is at least $1.40 for the writing, and then some larger expense –we’ll say $2.00 — to ensure the ad is logical. That comes down to $3.40 per ad. If an advertiser has 5,000 ads in her account that’s over $15,000 of expense.
What’s the lesson for advertisers? Start looking for budget. Oh and get ready. You can bet that if Google is doing this now, their cousin in Redmond will follow suit in the next few months.
The Fourth of July is a spectacular day: barbeques, fireworks, fun in the sun (one hopes) and music, all in the name of our country’s freedom. While you’re out celebrating with family and friends, here is some strange Independence Day trivia to share, courtesy of ABC News, History.com and Fourth of July Trivia.
What day did most signers of the Declaration of Independence actually sign the document?
Aug. 2, 1776.
How many people signed the Declaration of Independence on July Fourth?
Three of the first five presidents died on the Fourth of July:
John Adams, Thomas Jefferson and James Monroe. Adams, the second president, and Jefferson, the third, died on the same day in 1826, the 50th anniversary.
Which president was born on the Fourth of July?
Calvin Coolidge, the 30th president, in 1872.
What other countries celebrate the Fourth of July?
How did the Nathan’s Fourth of July Hot Dog Contest begin?
It apparently started after a disagreement among four immigrants over who was the most patriotic.
John Adams would think the country is celebrating Independence Day on the wrong date:
Adams wrote that July 2, the date the Second Continental Congress voted in Philadelphia to declare independence from Britain, not July 4, would be the day patriots celebrated their freedom. “The Second Day of July 1776, will be the most memorable Epocha, in the History of America,” Adams wrote on July 3. “It ought to be solemnized with Pomp and Parade, with Shews, Games, Sports, Guns, Bells, Bonfires and Illuminations from one End of this Continent to the other from this Time forward forever more.”
When did the Fourth of July become a legal federal holiday?
Is there something written on the back of the Declaration of Independence?
Yes. It might not be a treasure map as Nicholas Cage’s character claims in “National Treasure,” but there is apparently a message written upside down at the bottom of the signed document: “Original Declaration of Independence dated 4th July 1776.” It’s not known who wrote it or when. Since parchment was usually rolled up during the Revolutionary War years, it’s thought this memo served as a label.