Any experienced advertiser can tell you that each industry is a different animal.
Facebook Ads for luxury real estate is no different. It comes with a level of nuance and unique audience characteristics that sets it apart from any other campaign type.
For instance, according to Bright MLS, 25% of US homes were bought with cash in April of 2022. Luxury real estate, by comparison to other forms, tends to maintain the same percentage of cash purchases regardless of how the economy performs.
In order to give you a leg up on this ever-growing competition, we've put together this guide.
In case you’re entirely new to Facebook Ads, don’t worry.
Settle in, and let's start at the top.
How Facebook Ads Work
Facebook Ads is a great tool for boosting traffic, enhancing exposure, and generating new leads..
The platform displays paid advertisements to targeted leads on Facebook as well as to hundreds of popular applications and websites.
As an advertiser, you start by defining your perfect lead in terms of geography, hobbies, age, money, homeowner status, lifestyle, etc.
Common Challenges Running Facebook Ads for Luxury Real Estate
Because of increasing competition, the cost of reaching a wealthy demographic increases continuously.
The competition for creativity is also higher. Generic lead generation methods are simply not viable. Using a clear, appealing value proposition is crucial for advertising success.
To help you, this article will show you innovative, intelligent strategies for effectively attracting, engaging, and converting luxury homeowners.
Facebook Ad Categories
Not to be confused with the different types of Facebook ads (discussed in a later section), these categories are divided by their intended objectives specific to the real estate industry.
Under each category header, you'll find an explanation followed by a practical application.
Lead Generation Ads
Creating an ad with a "coming soon" preview of a listing that hasn't yet reached the multiple listing service (MLS) benefits you in two ways.
First, it allows you to acquire a plethora of hot buyer leads, and second, it assists you in creating buzz around the home for sale.
You can even make buyers "compete" for it by using Facebook's built-in lead collection form.
Grow Your Audience Ads
Experienced real estate advertisers know that regularly producing valuable content through various channels is essential. You must secure your presence in the audience's perception.
One way is to run a contest. Offer a prize to users who successfully guess the sale price of one of your listings.
A high-resolution image, lead form, and some engaging copy is all it takes.
Brand Building Ads
Facebook is an ideal platform for deep, long-term brand building, but it must be done correctly.
Use a sequence of five or six single-topic communications that each present a distinct value proposition.
Connect your videos to a clean, attractive landing page that explains your service and features a clear call to action (CTA).
Listings Acquisition Ads
The more expensive the listing, the more difficult and expensive it is to seize the lead. However, there are methods to spend less while getting more.
Use the built-in lead capture form on Facebook or a landing page with a multi-step form.
All that is required is a basic graphic ad.
Facebook Ad Strategies for Luxury Real Estate
Here we’ll dig into the different types of ads and how they are typically employed in luxury real estate.
Facebook Ads strategies continue to evolve. Use these as a starting point to brainstorm and test your ideas.
Classic Property for Sale Image Ads
While video advertisements are the leader in advertisement media, that doesn't imply picture ads are obsolete.
If done correctly, simple and high-quality picture advertising assists in drawing leads and producing numerous conversions.
You should also employ picture advertising because they are quick and straightforward to create.
Just Listed Real Estate
"Just Listed" ads allow agents to increase demand for a listing.
They work well with concise descriptions and high-quality images.
You can also make your ads into a slideshow video to increase the ROI.
Just Sold Property Ad
"Just sold" listing advertising increases your trust and reliability.
After all, if you provide excellent outcomes for individuals in your neighborhood, new prospects are more likely to approach you.
If you want to generate conversions, start with benefit-rich headlines.
Home Valuation Ad
Home value is a significant factor for both buyers and sellers.
The majority of individuals charge too little or ask too much for their homes.
Offering a free house valuation is a terrific method to gain trust.
Prospects enjoy the immediate value and are one step closer to needing an agent to help sell their home.
Listing "coming soon" ads allow you to measure how much interest surrounds a property.
These ads highlight the property, reduce buyer resistance, and raise interest by providing customized payment plans and incentives for large-ticket purchases.
Real Estate Agency Achievements Ads
Publishing your personal or agency's achievements is an excellent strategy to increase visibility.
Prospects who see the ad are more likely to sign up for a newsletter because they want the best possible industry information.
Video Real Estate Ads
When it comes to lead generation and conversion, real estate video ads outperform every other format.
It's simply a more compelling content medium.
So, if you're not already using videos in your real estate Facebook advertisements, here are a few different types to help you hatch ideas.
Real Estate Agent Introduction Ads
Running an introduction ad means cultivating your target prospects in a specific region.
It allows you to identify new prospects, nurture them, and convert them into clients.
Virtual Home Tour Ads
According to Realtor.com, properties with virtual tour videos receive 87% more inquiries than ones without.
The reason for this is simple: virtual tours allow prospects to examine the whole property from the comfort of their own homes.
Customer testimonials are one of the most straightforward methods to establish social proof.
These ads immediately build trust, improve your reputation, and acquire highly qualified leads.
You may make a list of questions to ask your clients, who can then answer them to provide you with a testimonial.
Video slideshow ads are inexpensive, quick, and simple to construct using pre-existing photos.
They load faster and consume less bandwidth than HD videos, allowing them to be seen in regions where internet connectivity is lacking.
Be sure to only use high-quality high-definition images of the homes to produce a professional slideshow.
Overall, the best results will come from ads that bring value to your prospects.
These advertisements might range from addressing the most frequently asked questions to alleviating their pain areas.
Investigate little-known facts that speak to your experience. Next, include these in your videos along with a special gift, such as a consultation or report.
Preparation and Advertising Research
To run a Facebook ad campaign, first, create a Facebook page.
A Facebook page provides you with valuable audience data and other useful tools to help you reach the best prospects.
Once you have your professional page up, you can use the following targeting research strategies to acquire leads:
- Interest overview
- Audience analysis
- Competitor targeting
- Related interests
On Facebook, the interest in "Luxury real estate" has over 125,000,000 followers.
Men make up about 45% of these audiences, and women make up about 55%. The primary age group (about 38%) is 25-34.
Depending on the circumstances, always select the most relevant demographic metrics (interest) for your advertisement.
When running luxury real estate ads on Facebook, specify appropriate audience targeting settings to reach the correct audience at the right time.
After your ad has some time to perform, you can generate a report to break down the luxury real estate audience. It will include demographic information, such as:
- Relationship Status
- Job Title
First, create a list of the most relevant Facebook Pages connected to luxury real estate and use them to target your Facebook advertising.
The higher the affinity score the higher the cross-over and relevancy to your target audience.
Next, begin targeting the audience that viewed the competitor page.
Related Audience Interests
Last, you can dig into interests with high viewerships that are related to luxury real estate.
While this audience is less qualified, it can help in generating ideas for ads.
How To Launch a Facebook Ad Campaign for Luxury Real Estate
After your Facebook page has received a few hundred likes, it's time to start running luxury real estate ads.
Here's the step-by-step.
1. Define Your Target Audience
When advertising luxury real estate, cast a larger net in terms of audience targeting.
For example, if you are an Atlanta real estate agent, you may wish to expand into the Asian audience.
You can target wealthy and high-net-worth individuals with affluent lifestyle preferences like luxury boating and cruises.
2. Create a “Lookalike” Audience
First, create a 'Special Ads Audience' if you are a luxury realtor in the US.
Once people start clicking your ads, you can have Facebook's algorithm build a "lookalike audience" to target people with similar interests.
For example, if your real estate page has some followers, create a lookalike audience based on their demographics. Facebook will put together another audience with similar characteristics.
You can then segment your campaigns by interest.
3. Use the “Custom Audience” Feature
You can also target potential consumers using the "Custom Audience" function if you have the appropriate data (phone numbers and/or email addresses).
4. Retarget Your Audience
Observe who expressed interest in a luxury property using a Facebook Pixel, and target them when you list another luxury house.
This strategy can significantly cut your cost-per-lead and cost-per-click. Especially for future ad campaigns.
5. A/B Test and Update Ad Copy
To combat ad fatigue, continuously alter your copy and visual elements.
Test out different sorts of ads when retargeting individuals based on how you categorized your audience.
For example, you could broadcast ads to the same audience at different times with virtual tours, open houses, and slideshows of the property.
We've attempted to give you a crash course in Facebook Ads for luxury real estate, as well as enough pro tips to get your creative gears turning.
If you're prone to suffering from analysis paralysis, we urge you to take action. Cut the cord. Just get started. The beauty of Facebook Ads is that with time, your advertising costs tend to decrease while your success rate increases.
However, if you're still overwhelmed, feel free to drop us a question in the comments. We're happy to steer you in the right direction.
For more involved queries on generating high-value leads, you can schedule a free strategy call with us here.
Luxury Real Estate Case Studies
Want to read examples of our Facebook Ads Strategies for luxury real estate? Check out this case study detailing high performing Google Ads and Facebook Ads strategies we built for a luxury real estate client of ours.
What are some unique characteristics of luxury real estate advertising on Facebook compared to other campaign types?
- Luxury real estate advertising on Facebook comes with unique audience characteristics, such as a high percentage of cash purchases regardless of economic conditions. Additionally, there is increased competition and a need for more creative and appealing value propositions due to the wealthy demographic being targeted.
How can advertisers overcome common challenges when running Facebook Ads for luxury real estate?
- Advertisers can overcome common challenges by utilizing innovative and intelligent strategies, such as creating compelling value propositions, using clear and appealing visuals, and targeting specific audience segments effectively.
What are the different categories of Facebook Ads specific to the real estate industry, and how are they used?
- The categories of Facebook Ads specific to the real estate industry include Lead Generation Ads, Grow Your Audience Ads, Brand Building Ads, Listings Acquisition Ads, among others. These categories serve different objectives, such as generating leads, growing the audience, building brand awareness, and acquiring listings.
What are some strategies discussed in the blog post for effectively attracting, engaging, and converting luxury homeowners through Facebook Ads?
- Strategies include using classic property image ads, just listed or just sold property ads, home valuation ads, coming soon ads, virtual home tour ads, testimonial ads, educational content, and more. These strategies aim to provide value to prospects, establish trust, and ultimately lead to conversions.
What steps are outlined for launching a Facebook ad campaign for luxury real estate, and how can advertisers optimize their targeting and messaging?
- Steps outlined include defining the target audience, creating lookalike and custom audiences, retargeting, A/B testing ad copy and visuals, and continuously updating strategies based on performance. Advertisers can optimize targeting and messaging by analyzing audience data, utilizing Facebook Pixel, and refining their approach based on insights gained from previous campaigns.