Where to spend my marketing dollars?

Photo by Pepi Stojanovski on Unsplash

Generally speaking, blockchain and cryptocurrency are new industries and haven’t created an established way to market their technology. (At least outside the blockchain space). Deedcoin, however, is not only a blockchain product, but a real estate service as well. This allows Deedcoin to have a greater amount of strategy and guidance to tap into in terms of marketing.

Deedcoin’s marketing strategy targets three specific demographics, all of which would find great value from the service:

  • -First-time homebuyers and sellers
  • -Equity-established homeowners
  • -Real estate investors and commercial property owners

The concept of a savings model is already well known in marketing. A company that has succeeded with this is Wal-Mart. A real estate service known as Redfin has already surged in growth due to it being marketed as a savings model, and is now worth several billion dollars.It is actually represented in less states than Deedcoin and doesn’t provide the same amount of savings.

To reach first-time homebuyers and sellers, the demographics that fall into this category must be analyzed:

Using 2015 statistics from the National Association of REALTORS®, it can be derived that the majority of first-time homebuyers fall between the ages of 25 and 44. This is great news! Why? Well, the demographics of internet users look like this:

Using 2015 statistics from the National Association of REALTORS®, it can be derived that the majority of first-time homebuyers fall between the ages of 25 and 44. This is great news! Why? Well, the demographics of internet users look like this:

Most notably, the demographics that are buying and selling homes for the first time line up closely with those who use the internet. A natural conclusion would be that utilizing the internet to market to them would be a safe and highly effective route.

One of the more familiar avenues of advertising and promotion on the internet is social media. For example, Deedcoin can use a location-targeted advertising service charging $ 10,000 per month, to target 80,000 (algorithmically potential) homebuyers in a single county, and direct them to a website. According to Wikipedia, there are 39 counties in the U.S with a population in excess of one million people. Targeting these counties first would require $ 390,000 per month and totaling $ 4,680,000 per year.

Billboard advertisement is another potential venue. The same demographics that falls into first-time home buying and selling also aligns closely with the majority of urban commuters. A billboard in an urbanized metropolis, which will continue to be targeted as highly populated, can charge rent to advertisers in the range of $ 4000-$ 20,000 per month, depending on traffic and visibility. Those figures total a range of $ 48,000 to $ 240,000 per year. Multiplied across 39 of the most populous counties, one billboard per county, per year would range from $ 1,872,000 to $ 9,360,000. Two billboards per county would range from $ 3,744,000 to $ 18,720,000 per year.

To reach equity-established homeowners, you must first determine their demographic ages. Identifying the term “equity-established” as those homeowners who now have “bought back” more than half of their home’s equity from their lenders. We can extrapolate since the average mortgage term in the United States is 30 years, these are homeowners who have owned their homes for at least 10 to 20 years. They are now in a position to buy or sell, whether or not their house is paid off completely.

The data being used to determine the average age of the first-time homebuyer is very similar to the age ranges from 10 to 20 years ago. So the average age of this second category is established by adding 15 years to the lower end of the range (24 + 15 ) and leaving the top of the range uncapped. This results in a category of homeowners over the age of 39, who have owned their home for at least a decade, as our equity-established homeowner target demographic.

While social media and billboards still are quite effective for the lower end of this demographic range, there still reigns a king when it comes to advertising to the higher end: Television.

Data suggests as younger generations of Americans have all but completely abandoned television altogether, the audience remains more loyal to the TV as they increase in age.

So how much does it cost to advertise to this demographic on television?

Primetime television advertising still increases in price over time. A 30-second advertisement on a primetime television show, using data from 2015, ranges roughly between $ 200,000 to slightly above $ 600,000.

If Deedcoin were to advertise on Sunday Night Football, just once, every week for the entire season, that amounts to $ 603,000 per week, for a 17-week span, or roughly $ 10,251,000 per year. (Most likely higher in 2018, or 2019.)

If Deedcoin were to advertise on The Big Bang Theory, just once, every week for the entire season, that amounts to $ 348,300 per week. That is roughly $ 7,662,600 for a 22-episode season. (Most likely higher in 2018 or 2019.)

If Deedcoin were to advertise on ABC’s Scandal, just once, every week for the entire season, that amounts to $ 224,509 per week, or roughly $ 2,469,599 during an 11-episode season.

If Deedcoin purchased a 30 second spot during the Superbowl, which is undoubtedly the epitome of all television advertising, it would require more than $ 5,000,000, not including any production costs.

Our last target demographic does not necessarily have an age range, but we can safely assume their income is higher than the average homeowner. Real estate investors and commercial property owners seek to gain the most from Deedcoin, due to their closings often requiring the highest dollar volumes in commissions disbursed.

Marketing to large portfolio customers can be done among the same routes as before, but can be directed towards specific channels used by commercial owners and property investors. LoopNet and CoStar are perhaps the most well-known avenues for this group of people, as well as specific podcasts and publications that cater to them.