December 21, 2022
How to Build a Marketing Budget for a Master-Planned Community
Creating a master-planned community marketing budget is a challenging but crucial step to strategically reaching and engaging the correct target audience. Investing in multiple marketing tactics ultimately offers home builders and real estate developers greater opportunities for higher ROI.
Developers and home builders should create and monitor their marketing budget to evaluate the overall ROI based on their marketing strategy and learn where improvements are necessary and possible.
Take a look at our guidelines for what goes into building an effective marketing budget to advertise for a master-planned community efficiently.
Finding the Right Balance
When putting a marketing plan and budget in place for a new master-planned community, it’s crucial to determine how much the budget is for marketing. Experts suggest that home builder budgets for master-planned communities be 1 to 1.5% of the community’s projected sales volume.
If a master-planned community offers 6,000 homes at an average sale price of $500,000, then the sales volume is projected to be $3 billion. So, for this community, the recommendation is a budget of $30 million which is 1% of the estimated sales volume. This budget will be front-loaded to pay for initial expenses like a website, branding and signage and allocated over the life of the community.
Homes builders utilizing less than 1% of the predicted revenue risk underinvesting in the community and missing opportunities for reaching and creating new leads. But if the budget exceeds 1.5%, this may lead to wasted funds and significant overspending.
Below, we’ve provided a detailed list of the elements a marketing budget should include to promote a master-planned community. These marketing tactics are necessary during different phases leading up to and after the community’s opening.
Marketing the master-planned community before construction is complete in preparation for presale events or the community’s grand opening requires prioritization of online strategies. However, the period after the community’s opening and completion of the initial phase of homes and amenities necessitates a balance of both traditional and digital strategies and tactics for effective marketing.
Elements of Marketing Budget
Promoting an upcoming master-planned community starts with the foundational step of establishing branding. This branding process includes creating digital and print designs to represent the master-planned community, including a logo, color palette and brand promise. A crucial aspect of branding involves crafting the community narrative and pinpointing the target demographic, thereby enhancing the development of the community's go-to-market strategy. Master-planned communities offer more than just new homes; they provide homebuyers with a unique lifestyle and emotional value. Community branding should effectively communicate the community’s lifestyle value and a clear vision for its residents in a memorable way that stands out to homebuyers. The brand presence should be incorporated throughout the community, from the entrance monument and placemaking elements to the sales center, home site signage, and amenities.
The home builder's website or a standalone community website is a critical element of homebuyers' first impressions when looking into a home builder or real estate developer and their master-planned community. To maintain an exceptional online presence, real estate developers and home builders must continuously maintain and improve their website. Home builders and developers should consistently distribute the master-planned community marketing budget over the project’s life to facilitate website upgrades to ensure the website meets homebuyers’ continued expectations related to videos, renderings, interactive plans and other trendy tools. The community website is an extension of the master-planned community; it needs to grow and change along with the community. While implementing marketing efforts for a master-planned community, lead generation should be a chief priority both leading up to its opening and throughout the life of the community. Home builders and developers should place this objective at the forefront of their marketing by including solid calls to action within the website, such as an easily accessible online form that new leads can complete to request information or join the VIP list. The addition of landing pages provides additional ways to capture leads from advertising sources such as Facebook and Google PPC by providing the shopper with a relevant page to land on. Think of landing pages as a warm handshake.
Enhancing website search engine optimization (SEO) is at the core of creating a successful online presence for a master-planned community. Allocating funds toward optimizing SEO gives the website a higher ranking among similar organic search engine results. As a result, this high ranking improves the website’s online visibility and delivers more qualified leads. Google processes 70,000 search queries every second, and 54% of web traffic comes from organic search – don’t miss out on your share of this traffic.
Digital – Typically, the master-planned community’s digital marketing budget includes Facebook, Instagram and Google pay-per-click ads.
Facebook’s ability to create custom ad audiences and develop targeted ads makes it a powerful tool for garnering awareness and attaining qualified leads. Additionally, this type of advertising possesses tracking capabilities that enable home builders to measure and reevaluate advertising strategies to improve audience reach and engagement.
With Google Pay-Per-Click ads, real estate developers and home builders pinpoint specific keywords related to the master-planned community’s homes or location and capitalize on these searches to drive high traffic to the website. Home builders can utilize Google Ads to target homebuyers as they consume Google products or platforms, including YouTube, Google Maps, Google Play apps and more.
The ability to retarget ads to people who have visited the community website via Google PPC, Facebook and other methods provides additional touch points for prospective homebuyers.
Over-the-Top (OTT) advertising platforms implement ad content through dedicated streaming services like Roku, AppleTV, Amazon Fire TV, Chromecast, or an internet-connected TV are additional lead generation sources. With high targeting capabilities and measurable tracking, OTT ads reach specific target audiences and provide strategic performance insights.
Audio advertisements on traditional and digital radio also offer a valuable opportunity for home builders and developers to implement highly targeted ads and effectively garner new leads. Streaming audio is changing the marketing landscape for real estate and presents new opportunities to reach consumers.
Online publication ads on newspaper or magazine websites are a strategic marketing investment for master-planned developments that utilize these channels to reach a growing audience. Online publications offer an invaluable placement for master-planned community ads to bolster brand awareness and reach.
Print – Although print advertising lacks the targeting and tracking capabilities of digital advertising, print marketing provides a tangible opportunity to enhance brand visibility and build brand recognition.
Being featured in a publication, such as a newspaper or a magazine, targets homebuyers likelier to engage with printed materials. To earn positive ROI, it’s important to perform preliminary research to determine which publications reach the correct audience for the master-planned community.
Direct mail in the form of a brochure, letter or postcard reaches homebuyers directly via their mailbox. Home builders target their audience by location or home type to reach the buyers most likely interested in a master-planned community. Direct mail marketing is cost-effective and an easy way to catch attention through a tactile approach.
Billboards are an impactful way to reach homebuyers who are on the go. By utilizing billboards, home builders quickly catch homebuyers’ attention with eye-catching imagery and a captivating message or slogan. By providing the opportunity to target areas that offer the best options to reach the intended audience, billboard advertisements offer home builders a strategic, cost-effective way to promote their master-planned communities.
Developing an effective content strategy to the best way to formulate a plan to share online materials to capture attention and create connections with homebuyers. Higher quality and quantity of content are important factors of success among 72% of marketers. Providing content about the master-planned community offers homebuyers additional information and insight into the homes, amenities and lifestyle. Share this content via the home builder’s website, social media channels, email or printed materials.
Publishing monthly blogs on home builder websites differentiates the brand and offers. Implementing monthly blogs allows home builders to improve SEO on their website, which helps enhance search engine rankings and drives higher traffic. The more blogs are published, the more often the website is crawled by search engines, thus providing additional ranking opportunities and becoming more visible to the target audience searching for new homes.
Social media is a staple in the online tool belt for modern home builders and real estate developers to reach and naturally engage their target audience. Home builders share interesting, relevant posts through social media and increase connections with homebuyers and other potential leads. By expanding a master-planned community’s presence using social media channels, home builders offer greater insight into the community’s homes and lifestyle opportunities.
Although real estate developers and home builders often overlook the value of public relations, investing in a solid public relations strategy rooted in media relations enables home builders and communities to manage their brand image, boost brand awareness and garner new leads. By expanding the master-planned community’s online presence within media that reaches the target audience, home builders enhance brand recognition and increase the likelihood that targeted homebuyers will be interested to learn more and visit the community.
Email marketing is important for home builders promoting master-planned communities because it provides a straightforward way to encourage prospects to join the community’s VIP list, announce the start of sales or offer other relevant updates about the community. This is an effective way to strengthen connections and provide personalized marketing that turns leads into buyers. For home builders considering the value of email marketing, HubSpot research indicates that emails return $38 for every $1 spent, providing a 3,800% ROI.
Delivering renderings and site maps of the master-planned community, as well as professional photography and video, to be shared on the home builder website and master-planned community website and social media channels is a crucial way to effectively engage the target audience and communicate the planned design to homebuyers during the construction process. Allowing homebuyers to visualize the streetscape and homes is key to selling them on the vision for the development.
When providing professional imagery to represent the community, utilize original photography to communicate its lifestyle and appeal. Using stock photos significantly lessens the impression made on prospective homebuyers looking for genuine insight into what the master-planned community offers.
Original videos also offer an incredibly effective way to engage potential prospects interested in a master-planned community. Providing an overview of the community or an inside look into new homes through video tours that move from room to room throughout the home captures homebuyer attention. Another option is videos that include video montages accompanied by lighthearted background music. This offers homebuyers a fun preview of the master-planned community and its beautiful home exteriors and interiors.
Home shoppers want to “tour” the master-planned community online before visiting. Because of this, 3D virtual home tours are now must-haves. Virtual tours allow homebuyers to explore homes and communities online from pretty much anywhere. These interactive experiences boost brand awareness and increase customer engagement with a builder’s online content. Not only do virtual tours save money (virtual tours cost far less than decorated models), but implementing this technology also indicates to homebuyers that the builder keeps up with modern expectations within the new home industry.
Providing qualified leads with a variety of high-quality printable or downloadable collateral keeps them moving through the buyer’s journey. Collateral for a master-planned community includes several options:
- Floorplan Imagery/Details
- Community Brochures and Builder Story
- Quick Move-In Ready Flyers and Price Sheets
- Warranty Information
- Included Features Sheet
- Community Amenities and Site Plan
Printed collateral using high-quality designs and materials helps communicate a master-planned community's appeal and exceptional quality to homebuyers. Providing print collateral allows communities and home builders to remain top-of-mind for homebuyers as they have visual reminders and tangible representations of the master-planned community to take with them. Home builders should always have these available at the community sales center and during promotional events. Additionally, collateral should be available to email as a pdf.
Offer potential leads, Realtors and new residents branded gifts such as hats, bags, shirts, umbrellas or other items. Delivering these items as housewarming presents to new homeowners is meaningful in creating a solid connection between builders and homeowners. This enhances their experience with the master-planned community, leaves a lasting impression, and allows homebuyers and homeowners to share their positive experiences with others.
Utilizing online listing services is a valuable investment for home builders seeking to advertise their master-planned community. Dedicated to finding qualified homebuyers, listing sites target new leads in the regional area of the master-planned neighborhood. Examples of popular home listing services include the following sources:
- BDX- New Home Source
- New Homes Directory
- New Home Guide
A master-planned community's signage offers prospective homebuyers and visitors the first physical representation of the community's quality. As visitors arrive at the master-planned community, the first sign they see is the entrance monument. This sign should be well-designed, inviting and memorable to capture the attention of homebuyers at first sight through cohesive design consistent with community branding.
Also critical is onsite and offsite directional signage, guiding visitors to the master-planned community and directing them within the community. This wayfinding signage helps visitors navigate the master-planned community with ease. Directional signs should be readable, consistently present and deliver helpful visual cues.
The sales center is the first place prospective homebuyers and Realtors arrive when visiting a master-planned community; this space is inviting and well-designed.
This space should ideally include exciting features, including visual displays and digital touch screens that allow visitors to explore elements of the master-planned community. Many community sales offices also feature a topo table that displays a miniature architectural model of the community’s layout to offer visitors an overall vision. Decorating the office with informational wall displays shares the story of the community and builders in a clear and visually engaging way.
Show off the value of a new master-planned community by hosting community events for prospective homebuyers and local Realtors. Community events are a valuable way to invite potential homebuyers to experience the lifestyle, beautifully designed homes, amenities and welcoming streetscape.
Pre-sale and grand opening events are an easy way to directly engage with relevant prospects on the community’s VIP list. Promote events beforehand throughout the community website, social media and email newsletter.
Determining who is responsible for master-planned community marketing is a significant budget consideration. Will the work be done in-house or through an agency?
Based on skillset, company vision and the amount of marketing required, the community developer should carefully assess its team’s strengths and weaknesses to determine any limitations that may prevent the implementation of a successful branding and marketing strategy. In many cases, a developer or home builder may be better served by partnering with a branding and ad agency to handle its marketing and ensure subject matter experts within the agency take on the responsibilities. If marketing efforts are handled in-house, the cost of marketing staff is added marketing budget. Figure out the portion of time each employee will spend on marketing and add that amount of time to the marketing budget.
Builder-Realtor relationships are a powerful collaboration to consider when marketing a master-planned community. Realtors play a significant role in the sales of master-planned communities, and home builders and developers should utilize their master-planned community marketing budget to supplement Realtor outreach and build stronger relationships.
Hosting Realtor events improves Realtor outreach. Host open houses, invite Realtors to meet the community's sales team or offer private tours to Realtors to provide further opportunities for interaction. Home builders form connections through these events and offer Realtors additional information they can provide to their clients. Strong home builder and Realtors connections result in Realtors bringing their high-quality clients to the master-planned community.
Another way to strengthen Realtor relationships is by offering gifts or special realtor promotions. By doing so, a builder demonstrates appreciation for their partnership with a Realtor. This works in the home builder’s favor by reinforcing the connection after a payoff and encourages the Realtor to continue partnering with the builder to find new homes for their clients.
Other Marketing Investments to Consider
While promoting a master-planned community, there are other investments and marketing expenses to consider while creating a marketing budget. These additional factors to consider include:
- Design Centers
- Online Sales Counselor Commissions
- Real Estate Agent Commissions
- Decorated Model Home Expenses
We hope these guidelines offer an efficient start for developing a master-planned community marketing budget. Keep an eye out for future blogs that will go into more detail on allocating a marketing budget over 10 years! Also, take a look at our Guide to Home Builder Guide to Marketing in a Downturn.
Set the Foundation for Your Master-Planned Community Marketing Strategy with Milesbrand
To create an effective budget and utilize your marketing dollars wisely, your company must implement powerful branding and marketing strategies to promote your master-planned community. We deliver an invaluable branding process to successfully market your master-planned community and introduce it to the right audiences.
At Milesbrand, we provide developers and home builders with exceptional community branding that elevates your master-planned community marketing efforts. Contact our team to learn more about our branding and advertising capabilities.