Propmodo Daily

By Franco Faraudo · Feb. 13, 2024

Greetings!

The Super Bowl is one of the only television events where the commercials have fans of their own. This year, commercial connoisseurs were served up a heaping dish of advertisement for CoStar’s residential marketplaces Homes.com and Apartments.com. When we calculated how much those two minutes and fifteen seconds of air time cost ($35 million). We had to ask the question, was it worth it?

This week, Propmodo Technology delves into the future of wayfinding and digital signage, focusing on how facial recognition and location intelligence are revolutionizing digital displays with personalized ads and interactive guides. We also explore the integration of GIS, Bluetooth, and Wi-Fi technologies to map building interiors, enhancing user experience.

Now, let's dig in!

Did CoStar’s Big Super Bowl Bet Pay Off?

This year's Super Bowl could well be among the most-viewed TV events in American history. On Sunday, approximately 100 million viewers tuned in to watch the game. It's probable that many of these viewers were still watching when one of CoStar's four commercials came on. The company shelled out an estimated $35 million for two minutes and fifteen seconds of advertising time, not to mention the additional costs of featuring various celebrities in their ads.

CoStar is no stranger to Super Bowl advertising, having previously featured Jeff Goldblum as the somewhat simplistic character Brad Bellflower in ads for Apartments.com and Homes.com. In 2020, they secured a spot during the game for a mere $5 million. But, this time, they've significantly upped their game, supporting their ads with a hefty $1 billion marketing budget. This move is part of their strategy to make a splash in the residential market and challenge established players like Zillow and Redfin.

Tracking the effectiveness of a marketing campaign as big as CoStar’s Super Bowl push is almost impossible, but there are signs that it did get some people’s attention. According to Google Trends, both Homes.com and Apartments.com saw their highest levels of popularity on Google's search engine coinciding with the game. Yet, this surge in interest swiftly returned to baseline levels after the commercials were broadcast.

The media frenzy surrounding CoStar's Super Bowl ad not only earned them considerable free publicity but also landed their commercial in the 41st spot out of the 59 ads featured in this year's Super Bowl, according to U.S.A. Today's rankings. It even garnered some unusual attention from major news outlets, including The New York Times. While the exposure was beneficial for CoStar, it wasn't without its critiques. A spokesperson from Redfin pointedly commented, "The billions spent on Lil Wayne and the entire Super Bowl spectacle amount to nothing more than a distraction if they don't genuinely improve people's lives. Amidst massive lawsuits concerning high brokerage fees, the critical question arises: Who's footing the bill? Agents pour thousands each month into these platforms, with the costs ultimately being borne by the consumer."

Securing a leading role in the residential real estate sector as it has in commercial real estate might be a tall order for CoStar, but that doesn't seem to deter their efforts. They appear to be banking on their financial muscle to outdo competitors like Zillow and Redfin, whose shares are currently trading at less than a quarter of their value from a few years back. CoStar might also be eyeing an advantage in the ongoing commission-sharing legal battles plaguing the National Association of Realtors. With Homes.com and Apartments.com, CoStar's strategy involves charging listing agents for ad space, a tactic that could gain traction if agents gain greater control over fee structures and find themselves needing to more aggressively demonstrate their value.

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Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

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