{"id":4360,"date":"2023-06-12T19:19:43","date_gmt":"2023-06-12T19:19:43","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2023\/06\/12\/marketing-dollars-spent-by-brokerages-are-trending-down\/"},"modified":"2025-03-13T02:51:23","modified_gmt":"2025-03-13T02:51:23","slug":"marketing-dollars-spent-by-brokerages-are-trending-down","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2023\/06\/12\/marketing-dollars-spent-by-brokerages-are-trending-down\/","title":{"rendered":"Marketing dollars spent by brokerages are trending down"},"content":{"rendered":"\n

In housing market downturns, most brokers<\/a> react to the pressure on their bottom line by cutting expenses. The area that can provide the most immediate relief is a reduction of personnel spending<\/a>. <\/p>\n\n\n\n

Occupancy-related expenses are the next biggest area of spend for most firms, but given the longer term nature of lease agreements, this area is a little harder to unwind. Brokers will typically then look to spending cuts in marketing, advertising and promotional. Interestingly though, there\u2019s not a ton of wiggle room in this area given the trends we\u2019re seeing in our benchmark studies.<\/p>\n\n\n\n

In 2012, brokers were spending an average of 7.3% of their gross margin (company dollar) on
advertising & marketing-related (A&M) expenses. Incredibly, over the last 10 years, this number has dropped to 2.1%, a staggering 71% decline. So how is it possible that so little is being spent on A&M in a sales-centric business?<\/p>\n\n\n\n

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