By Kimeko McCoy • December 20, 2024 •
Ivy Liu
The crusade to make everything an ad network continues as yet another player enters the space: real estate media.
On Wednesday, global real estate brokerage firm RE/MAX announced its own commerce media network, RE/MAX Media Network, a programmatic offering leveraging the real estate brand’s owned properties across its websites, email newsletters, and in-property digital displays.
The question is: Can media buyers be convinced to shell out on yet another retail media network (RMN) given so many of them already exist, like Zillow Group Media Manager, which could serve as direct competition to ReMax’s newly launched offering?
“Any new high-impact inventory source with minimal ad clutter is worth exploring, particularly given how well similar offerings have performed for brands targeting ‘movers’,” said Sammy Rubin, vp of integrated media at digital marketing agency Wpromote, in an email to Digiday. The real estate’s ad offering, however, hinges on its targeting capabilities, she added.
Notably, RE/MAX has followed the industry trend, making the case for advertisers to spend brand marketing dollars — budgets that agency execs say tend to be bigger than shopper or trade marketing budgets. Its current ad offerings are search result pages, display, property listing detail pages with plans to roll out video ad spots.
Already, interested advertisers have been asking about advertising on RE/MAX’s iconic hot air balloon and social media channels for brand awareness opportunities, according to Abby Lee, evp of marketing, communications, events and production at RE/MAX. For now, the company is taking a learn-as-we-go approach, working with advertisers quarterly to tweak media plans and tech stacks.
“Our bigger goal is to get those partnerships and really creating advertising opportunities that fit the advertiser’s need,” Lee said. “It’s not as if we have a sale sheet with that, ‘This is what you get and this is our offering’.”
That said, if RE/MAX can offer some more creative opportunities, it may be enough to get advertisers to tap into those brand budgets as the rest of its monetization opportunities may not be enough to disrupt the broader retail media network marketplace, according to Mike Feldman, svp and global head of retail media at Vayner Media.
“The key opportunity for RE/MAX, in my opinion, is to turn its agents into its best asset,” Feldman said. “If they can focus on helping their agents become content creators and affiliates, that’s where they could really find success.”
As it’s starting out, the real estate brand’s media network is open to endemic brands, looking to ink deals with brands in home improvement, insurance, personal protection, design and home goods. Lee did not disclose which advertisers had already signed on to advertise with the real estate company.
Retail media is a booming space, expected to make up one-fifth of worldwide digital ad spend this year. eMarketer predicts by the end of 2024, retail media will account for more than $140 billion in digital ad spend, jumping up to nearly $166 billion in 2025. Seemingly, RE/MAX stands a chance of grabbing some of that spend, according to five agency executives Digiday spoke with for this piece.
Similar to The Home Depot, RE/MAX’s so-called specialty status could be an interesting play for advertisers looking to target home buyers and related categories, like home furnishings, home fitness and the list goes on.
“Home buying in general has a pretty good hidden data set that you can likely extract from the actual home value,” Boris Litvinov, president at ad agency Left Off Madison said in an email to Digiday. The agency is currently working with global electronics manufacturer Panasonic, targeting new movers considering buying or replacing their electronics and would be open to trying RE/MAX’s offering, per the agency.
Naturally, there are revenue expectations attached to RE/MAX’s new business venture. Although Lee did not outline specific revenue goals, she said there are annual targets that’ll serve as a checkpoint for the business.
There are reportedly more than 200 retail media networks at this point (and counting). Meaning that RE/MAX faces stiff competition. Amazon, Walmart, Kroger and Target’s Roundel stand as behemoths in the retail media space, leaving more longtail, niche players facing off for remaining ad dollars.
“I guess time and results will only tell if this is another valuable data/inventory set or just another overpriced ineffective retail media network,” Litvinov said.
https://digiday.com/?p=564226
