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Survey: many firms will up ad budgets in '92.

Survey: Many firms will up ad budgets in '92

Real estate companies are confident about an economic upturn, but don't think it will begin for at least one to three years.

In addition, twice as many real estate firms plan to increase their advertising budgets in 1992 rather than reduce their promotional spending, according to a recent survey of major commercial and residential real estate firms by Newmark, Posner & Mitchell, Inc., a New York-based advertising agency which has serves the real estate industry.

Other highlights of the agency's Third Quarter survey, drawn from a questionaire sent to hundreds of local, national and international real estate companies headquartered in New York City, include the following: * 61 percent of the respondents predicted an upswing in the economy while only 14 percent felt no turnaround was likely. Twenty-five percent were unsure. * Of those firms bullish on the economy, 73 percent felt an upswing was one to three years away, with the largest group (30 percent) predicting two years. Only 10 percent felt the market would begin to turn by the end of 1991, and 7 percent expected it to take as long as five years * A significant number of firms (45 percent) planned to expand their advertising budgets in 1992, while 23 percent expected to reduce spending. The remainder were either unsure or expected to maintain at current levels. * In an effort to find the most effective vehicles to reach a beleaguered marketplace, 57 percent of the firms said they changed their media mix in 1991, with direct mail being the biggest beneficiary (up 35 percent) * Newspaper advertising and direct mail tied as the most important vehicles for current real estate advertisers, although the dailies beat out direct mail (40 percent to 28 percent) as the most cost effective medium. * In perhaps the most surprising finding, 43 percent of the companies responding said they were advertising more this year than 1990, compared to 35 percent who said they were advertising less. The increased spending appears to be largely in the residential rather than the commercial sector of the marketplace.

"The message from this survey is clearly that real estate advertisers are making adjustments to one of the most sustained and difficult economic periods in their history," asserted Peter Posner, senior vice president of Newmark, Posner & Mitchell, Inc. "If anything, they're becoming more ingenious and creative in terms of stretching their promotional budgets and strategies to solidify their market share."
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Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:real estate industry ad budgets
Publication:Real Estate Weekly
Article Type:Brief Article
Date:Nov 27, 1991
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