It better be.  According to a recent study published by the National Association of Realtors and supplemented on MarketingCharts, 87% of home buyers start online.  While this is no surprise to Internet Marketing professionals there has been some inconsistency in this percentage over the last four years depending on who you talk to in the real estate industry.  Now we know.

Here’s the skinny:

• 87% of home buyers used the internet to search for a home purchased through a real estate agent,
• 72% of non-internet users were more likely to purchase in a private transaction directly from a builder or from an owner they already knew.

What information source did home buyers use:

• 87% Internet
• 85% Real-estate agents
• 62% Yard signs
• 48% Open houses
• 47% Print or newspaper ads
• Fewer buyers relied on home books or magazines, home builders, television, billboards and
  relocation companies.

When asked where home buyers first learned about the home they purchased:

• 34% said a real-estate agent;
• 32% cited the internet;
• 15% said yard signs;
• 7% said from a friend, neighbor or relative;
• 7% said home builders;
• 3% said from a print or newspaper ad;
• 2% learned directly from the seller;
• 1% from a home book or magazine.

Bottom line is that while the real estate industry has remained pretty traditional in method – using an agent, driving around looking at neighborhoods and finding open houses – online is and has been playing a significant role as an information resource to home buyers and you must be there to take advantage of it.  No online marketing company is going to tell you they will sell homes for you, and if they do, you shouldn’t believe them.  Hiring professionals to put together an online strategy that can be incorporated into your marketing plan will be the best bet.  The key is visibility, online presence, and lead generation.  Home buyers want to find the perfect home, and you might just have it, but you’ve got to be online so they can find you, thus providing a forum for them to reach out to you and visa versa.

Get the most up to date Real Estate stats regarding:
First Time Home-Buyers, Current Down Payments, Agent usage by Buyers and Sellers, Foreclosure Purchases, Features and Incentives,  and Additional Demographic Information by reading the full article at MarketingCharts.

About the study:
The 2008 National Association of Realtors Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, marketing, preferences and experiences of home buyers and sellers. NAR mailed an eight-page questionnaire in August 2008 to a national sample of 133,000 home buyers and sellers who purchased their homes between July 2007 and June 2008, according to county records. There were 10,053 usable responses and the adjusted response rate was 7.9%. All formation is characteristic of the 12-month period ending in June 2008 with the exception of income data, which are for 2007. Because of rounding and omissions for space, percentage distributions for some findings may not
add up to 100 percent.

In the spirit of the election, we’ve discovered some very cool online marketing tools, applications, and SWAG.

Free stuff on Election Day:

1. Starbucks will give you a free 12-ounce coffee. Legally, abiding by election laws, Starbucks cannot offer free coffee to those who voted so they are giving coffee to anyone who asks for it.   Tara Darrow of Starbucks says, “To ensure we are in compliance with election law, we are extending our offer to all customers who request a tall brewed coffee. We’re pleased to honor our commitment to communities on this important Election Day. We hope there is a record turnout on Tuesday and look forward to celebrating with our customers over a great cup of coffee.”
2. Ben & Jerry’s free scoop of ice cream.  Between 5 p.m. and 8 p.m. in each time zone, ice cream shops  will hand out single-scoop ice cream cones. Get their early, lines will be longer than the voting lines.
3. Krispy Kreme, 85 of its 231 locations in the U.S. will hand out star-shaped, red-white-and-blue sprinkled doughnuts, of course while supplies last. The chain will give out about 200,000 doughnuts.
4. Chick-fil-A, 1,400 stores will hand out chicken sandwiches to adults who show proof that they voted, not sure this abides by election laws so I’m assuming it is also while supplies last.
5. Hipmamasplace.com, stay at home Moms can sign up and get free or discounted baby sitting services on Election Day. Read this article for details.

Cool stuff on Election Day:
1. A new comparative search tool allows you to compare and analyze anything on the Internet.  Appropriately, check out http://www.perspctv.com/ an election comparison between Obama and McCain, it consolidates data across various news, blogs, and social sites.

2. Google Maps – Find my voting location.  Google created an app that plugs write into their maps tool allowing visitors to enter their address and then find out where their designated voting location is. Pretty cool.

What makes a good Search Marketing Firm?

As a business owner, CMO or Marketing Director, the choice of a Search Marketing Firm will be one of your most important decisions.  In order to fully realize the benefits of Search Marketing, it is crucial to understand what role Search Marketing will play in your organization and choose a service provider that supports this role.

What is the focus of the Firm?

It is very important to understand what the prospective service provider specializes in.  Lately, it seems that everyone is getting into Search Marketing.  There are hosting companies, web design firms, web development shops and traditional agencies all trying to get a piece of the market.  It is often the case that no firm can do it all, or at least not do it all well.   It is best to choose a firm that specializes in Search Marketing.  There is no strong argument for using your web developer or your hosting company for your paid search management to keep it under one roof.  The worst combination is a traditional advertising agency that offers Search Marketing services.  That is like getting heart surgery from your pharmacist, they may have heard about it, maybe even read about it, and may be able to talk the talk, but they don’t do it day in and day out.   No matter what type of firm you are talking to, ask them who will be managing and performing the Search Marketing work.  Is it handled in-house or outsourced to another firm?

How do they view Search Marketing?

Do they believe that one aspect of Search Marketing is more important than the other?  Or do they believe that all initiatives work together and view search holistically?  As you interview service providers it is highly recommended to learn a little about the space.  You don’t have to become an expert, just have some basic knowledge.  Unfortunately there are a lot of charlatan’s and snake oil salesman out there.  By doing an hour or so of prep work on your own, you’ll find it is much easier to avoid many of these scammers.

What are their Search Engine Optimization tactics?

White Hat or Black Hat?  Learn this terminology, especially if your company’s reputation and long term success are important.  Basically White Hat SEO Firms play by the rules of the search engines and understand the uncertainty involved in playing by the rules.  Black Hat SEO Firms will tout quick and/or guaranteed results.  Never has it been more accurate that “If it seems too good to be true, it probably is.”  Black Hat SEO Firms stretch the rules and manipulate them often to the eventual detriment of their clients.  There is nothing wrong with preferring the Black Hat Route, it does work, usually, but not for long.  Getting banned from Google is real, and blaming it on an SEO firm will not get any sympathy or get you back in.  Make sure you know which side of the fence they are on.

What is their Paid Search Pitch?

Are they guaranteeing clicks, traffic or sales?  Ask how.  Beware of the “We have a relationship with Google”.  I get cold calls on my cell phone from firms claiming this all the time; some of the pitches are quite smooth.  If they had a relationship with Google they wouldn’t be talking to you or offering services, they would be using their relationship for their own benefit.  Saying they know a guy at Google is like knowing a guy at the Lottery Commission.  It is common for an agency to have a Rep at Google, we do too, but that does not in any way indicate an inside track or special arrangement.  Beware the Google Partners or Resellers claim; that means they make a cut off your Paid Search spend.

Do they stress bid management and special software as their competitive edge?  While this was the answer many years ago, times have changed.  Every major Paid Search venue uses some variation of a quality score and smart pricing.  This means that the entire campaign from keyword to landing page needs to be tested and managed, not just the bids.

If fact, the bids are pretty much the least important factor since they are derivative of the account performance as a whole.  Google made $16.4 billion last year from people clicking on ads.  They don’t care if you bid a million dollars a click; if your account has low relevancy to the search term your ad won’t show. If you have a significant spend budget in a highly competitive and fast moving niche there can be a benefit to bid management tools, but only as an enhancement to active management, not a replacement.

And another thing; taking Google or Yahoo! or MSNs advice on how to manage a campaign, or worse yet having them manage the campaign is like having the IRS do your taxes.  Enough said.