Article to be published (from assignment) in January 2009 edition of Auctioneer magazine.
It’s been years since an auctioneer could simply post sale bills around town, fax some text to the local newspaper, and wait for scores of townspeople to stand in line to register at his auction. The dynamic of where and how consumers absorb media and shop change continuously. While your firm might not yet be wondering about cell phone advertising or PDA-adjusted web sites, you’re probably wrestling with the same essential question: how do I spend my advertising dollars for greatest impact?
Auctioneers have different needs than most service and retail companies. But we’re dealing with the same market factors as the next office down your street.
Newspaper advertising sales are projected to decline in the coming year for the second year in a row (the first time that’s happened since the Great Depression) and maybe by double-digit percentage.† Meanwhile, the Direct Marketing Association predicts that for the first time ever, online advertising spending will surpass direct mail expenditures in the U.S.†† So, options are increasing; and choices are growing more enigmatic.
Just don’t let the “analysis paralysis” stunt your efforts. If anything, keep doing what you’re doing and gradually add a new media outlet to the mix. Barry Baker, CAI, AARE, president of Ohio Real Estate Auctions, suggested, “What works well is to cover all of your avenues and spend money. You can’t shrink back on spending. Tons of electronic media, direct mail, news print, great signage. You never know which one is going to bring your buyer.”
Jennifer Bryant, principal broker for Counts Realty & Auction Group, agreed, “In order to get top dollar for any property being sold it’s imperative to spend the advertising dollars to get the property as much exposure as possible. Cutting corners on marketing may cost sellers thousands of dollars on sale day.” Bryant relayed that she has found web sites to be the easiest media to add to her advertising repertoires, seeing as their targeted audiences typically cost less to reach than older media formats.
If you don’t have the money to try new media outlets, you can shift your budgets toward your most effective media. To know how to cut or adjust, poll your bidders at registration. Be specific by media or even by specific media outlets (like which radio station or newspaper). It can be as non-obtrusive as, “How’d you hear about the auction?”
At one sale I helped advertise in a new geographic area for the auctioneer, the results to this registration question revealed that 75% of the bidders heard about the sale from the signs on the property and the story generated from the press release—which together accounted for only about 5% of the advertising budget. You still have to cover all your advertising bases, but a matrix of results like these over a broader sample of auctions will show you where to spend your largest portions of your budgets.
Using an ad agency can help you discover and manage new opportunities. Cammy Theurer-McComb, vice president of United Country Theurer Auction/Realty, attributes her switch to using ad agencies (she currently uses two simultaneously for different media) as “one of the best business decisions we ever made.” She added, “Outsourcing has been a relief, actually. And it brings a lot of consistency to our advertising.”
Consistency multiplies your media impact, as the connection between the various ad formats reinforces the others. The more consistent your materials, the more value each one holds. While ad agencies can make this easy, you can manage this process carefully without one, too. Jennifer Hope of Auction Ink recommended, “Create an identifiable visual image by using the same font, color, and general layout. There’s no need to recreate the wheel–find a look and stick with it.”
Carl Montgomery, CAI, AARE, of Comas Montgomery has seen consistency turn into residual returns. “The best advertising we do . . . is network television. We have been running on the local NBC, CBS & ABC affiliates for over ten years. Charlie, Dad, and I talk about our company and upcoming auction. Our tag line at the end of every commercial is ‘Let‘s Go Sell Something.’ Everywhere we go in Middle Tennessee people come up to us and say ‘Let‘s Go Sell Something.’ We have letsgosellsomething.com on tee shirts; and people ask what it means. We tell them to check out the site, which drives them straight to comasmontgomery.com.”
Keep your contact information uniform, too. Make your web site or phone number more memorable by including only one of each within any advertisement. If you absolutely need to use more than one, qualify each, so that the viewer will know why to call each.
Make sure you know why you’re contacting them, too. “Using a database [broker] like InfoUSA® really helped us target like-kind property owners,” divulged McComb. As her company expands into new geographic territories and diverse kinds of sale items—from antique toys to rock quarries—purchased demographic mailing lists have allowed them to send larger-impact direct mail pieces to a more concentrated audience. “That’s been HUGE for us,” said McComb.
Mike Schultz, CAI, president of Schultz Auctioneers, has also adapted to this strategy. Four years ago, his firm was posting Kinkos®-printed posters in community markets. Now, “Prospective sellers are coming to us with our own brochures, saying, ‘We want our property advertised like this!’ Well, we’re happy to oblige them.”
The residual affect of premium marketing can’t be overstated. Schultz concurred, “We’re spending more thought, creativity, and resources on every stage of the sales process. It’s giving us a competitive advantage over our regional competition.” This strategy has also drawn free local media attention from press releases, as in 2008 they’ve won Best of Show at their state association’s advertising contest and two NAA awards. “We’re investing in more exclusive brand positioning. It’s paying off—and not just in awards.”
So, there’s your answer: distribute consistent, premium advertising to more targeted audiences in as many media outlets as you can afford. Poll your bidders to evaluate effectiveness.