Reuters.com published this article March 17, 2008
In a bombshell report on the “state of the news media 2008” the Project for Excellence in Journalism, a “non partisan-non ideological-non political” research organization reports some astute if not astonishing findings that show eerie parallels between mass media and the real estate industry:
The Original Posit
1. Critics Wrong?: The posit here is that critics tended, myself included, to see“technology democratizing the media and traditional journalism in decline.” Audiences are “fragmenting across new information sources (blogs-social media sites) breaking the grip of the media elites.” That was our posit and stance.
2. Long Tail Theory: the idea that the millions of niche markets could be bigger in aggregate than the “old mass market dominated by large companies and producers.”
These points would lead to the perception that mass news media is losing it’s audience to bloggers, losing it’s readership, and battling a losing war of attrition to “citizen journalism.”
The truth according to Project for Excellence in Journalism is “even with so many new sources, more people now consume what old media newsrooms produce, particularly from print, than before.” Traditional news media is more popular than ever before but how?
Although the fact that news media popularity remains high, with readers clamoring to read their product, the problem remains that there are less advertising dollars leading to layoffs and staff cuts as a way to reduce costs. According to Joe Garofoli’s well organized article on this report “. . . the latest (example) is 157 Media News employees in the Bay Area were let go over the past few weeks.”
Outlook for American News Media and Real Estate Industry a Parallel
“The crisis in journalism, in other words, may not strictly be loss of audience. It may, more fundamentally, be the decoupling of news and advertising. . .”
“News people see as their basic challenge: somehow they must reinvent their profession and their business model at the same time they are cutting back on their reporting and resources.”
Real Estate Industry Challenge and Analysis
Like journalism, the market for buyers and sellers is still out there but the rules of engagement have changed drastically. The business model for brokers going forward will be to provide free unlimited information that is constantly refreshed, monitored, and provides real time engagement with it’s audience.
Real Estate broker-owners in the past could rely upon exclusivity of the mls information as the “secret formula” or carrot on a stick business driver. Broker’s had control of this information and the public was forced to engage with brokers in order to gain access to what they wanted to explore.
Today that old business model is gone and doomed to failure. The new model is total transparency in business, in information, and in practices and processes.
Mechanisms for Success and Survival
For Realtor broker owners the mechanisms for Success and Survival:
1. Incorporate blogging as the marketing tool
2. Search engine optimization tool
3. Advertising tool
4. Information-Value provider to the public
Within this strategy is the blog network which is a first adopter advantage that guarantees a broker the survival of his/ her business, search engine optimization that becomes the “killer” lead generation application of the future and the tool which can and will lock your competition out of Google searches pertaining to your keywords, phrase based on your location and niche market.