FourFourThree, a website that tracks apartment digital marketing costs, reported a sharp drop in apartment digital advertising costs.
In the first quarter of this year, digital advertising revenue in the apartment market was $6.9 million, down from $8.4 million in the same quarter last year.
This decline, the company said, is partly due to the end of an apartment ad campaign launched by the company in January.
FourFourFive’s chief executive, Paul Stearns, said he thinks the drop in digital advertising will likely last for a couple of years.
Stears expects to see apartment ad spending rise again in 2018.
But he also expects apartment ad prices to fall further, especially in Manhattan.
“I think in the first few years, apartment prices will go up because people are more aware of the value of living in an apartment, but as apartment prices fall and more people move in, they’re going to see prices increase again,” Stearnes said.
“We believe the apartment ad market will continue to grow, but that’s not happening right now.
It’s going to be a gradual process.”
Stearns said that while apartment ad costs are likely to drop in the future, the average apartment has fewer digital assets than ever before.
“In the past, apartment ads were a large part of the equation,” Stears said.
“Now we have the ability to do more with the advertising that we have.
That means we can deliver more content, more targeted content to people, and more personalized content that is going to get people to stay in their homes more.”
The rise of Amazon and other online retailers also played a role in apartment ad growth, the firm said.
The number of apartments rented by online retailers such as Airbnb, Instacart and Homejoy grew significantly last year, according to FourFourOne.
The online retailing market grew by 12 percent, while apartment advertising fell by 11 percent.
FourFourFive did not provide data on how many apartments had an ad campaign in the previous quarter.
St. Cloud State University professor Andrew Tieden said he believes apartment ad sales are at a plateau.
“They’re very expensive,” he said.
Stears noted that apartments have become increasingly expensive for both the apartment owners and the renters.
“There’s a certain amount of comfort associated with buying an apartment in a place like Brooklyn, where you have to have a mortgage and you have no kids,” he told FourFour.
“I think it’s going the wrong way.
The cost of living has become more and more unaffordable for people.”
Stears said he hopes that apartment ad technology will continue growing.
“We believe that with the right investment and with the talent, we can take this to the next level,” he added.
“Our next big step is to help companies create their own ad campaigns.”