Digital marketing strategies in the multifamily sector are undergoing significant changes. While most owners and operators still allocate a large part of their budgets to internet listing services (ILS), multifamily professionals are aware of the shifting landscape. Today’s renters don’t just check an ILS and visit a property—they do their homework, exploring various avenues to gain a comprehensive understanding of their desired community.
The push for diversification isn’t driven solely by the evolution of apartment searching but also by the uncertainties that digital marketing can encounter. A prime example of this is the recent controversy surrounding TikTok, which was briefly banned before being temporarily unbanned and has only recently become available for download again in app stores.
Still, consumer behavior drives changes in digital marketing effectiveness, and marketing teams must adapt quickly, making adjustments based on current data-driven insights. Multifamily absorption has remained high in many metropolitan areas, but there are numerous factors clouding the industry’s future. The nation is facing economic uncertainty as inflation begins to rise again and job layoffs are increasing. Tariffs could send prices on goods upward even further, and vacancies could increase depending on how the situation plays out, as well as how the planned mass deportations go.
Digital Marketing Landscape Transforms Renting
Multifamily marketing has changed substantially as marketers see digital channels become more prominent with nearly 98% of renters using some form of a digital channel for their apartment search. Today's renters show distinct behaviors that require a multi-channel approach, according to the 2024 Multifamily Marketing Trends report.
“Marketing teams are diversifying in addition to the standard ILS platform and shifting money into the digital marketing arena,” says Monica Ritchie, senior marketing director for Asset Living. “For some, the default is now to put more into digital marketing campaigns as opposed to two or three years ago when they would automatically put it into an ILS. Marketing is always an ever-changing landscape.”
Marketers can use multiple digital channels to reach qualified residents effectively. A smart mix of search, social, digital display, and geofencing has been shown to connect with renters at different stages of their search.
1. Paid Search: Search engine marketing is vital since many renters start their housing search on search engines, which is why 90% of multifamily companies utilize it in some manner, according to the 2024 Multifamily Marketing Trends. Google PPC ads perform exceptionally well with higher click-through rates than industry averages.
Prospects see these ads at the top of search results when they look for specific terms. The most effective ads use relevant keywords, compelling headlines, and smart extensions that boost engagement. Marketers can show their properties with location extensions and highlight current specials using promotion extensions.
2. Social Media: Social media gives marketers unique ways to showcase properties and connect with future residents. Facebook, Instagram, and TikTok are efficient ways to display amenities visually, create emotional bonds, and promote community engagement. Regular posts with quality content about property updates, community news, and authentic resident contributions help build trust and credibility.
“Current marketing initiatives are leveraging social media. We know we’re going to get the conversions from there, so we know that's always a good choice,” Ritchie says.
Paid social advertising is an additional method that lets marketers target specific audiences precisely. Facebook and Instagram ads work especially well when there are people actively searching for housing options, and they are a heavy favorite over TikTok and other platforms, according to the 2024 Multifamily Marketing Trends.
3. Digital Display: Digital display’s strength lies in the ability to target a specific audience with marketing. Unqualified leads can bog down the efforts of leasing teams. Ensuring that your brand is reaching only your audience means this is a highly efficient use of the marketing budget. Smart retargeting helps marketers show custom ads to prospects who visited their websites but haven't made a decision yet. This multi-channel strategy keeps properties in mind throughout the renter's decision trip.
4. Geofencing: Geofencing is a location-based strategy that creates a virtual boundary in a specific geographic area. Marketers can target prospects and send personalized messages or ads to their mobile devices when they enter the boundary. One of the best ways to get a prospect in your door is to get their attention when they’re nearby.
Digital changes extend beyond just property listings. Virtual tours are essential for apartment hunters exploring homes remotely. Chatbots answer basic questions, schedule tours, and gather information for leasing teams. With 41% of renters preferring digital tools to book tours (almost 60% for ages 18 to 24), marketers invest in user-friendly interfaces and self-service options to meet automation demand.
AI Tools Are Revolutionizing Multi-Channel Marketing
Artificial intelligence (AI) tools are changing digital marketing for rental housing. Marketers use AI to streamline campaigns and offer tailored experiences. Algorithms optimize advertising across platforms, adjusting budgets for occupancy trends and vacancies. Advanced tools analyze performance data to allocate ad spend effectively across Google, Meta, and more.
Marketers can create tailored content and recommendations for renters, using AI to identify and categorize potential customers, enhancing engagement through personalized outreach. Automated systems can now assist with several more mundane tasks:
- Lead nurturing through customized multi-channel communications;
- Property descriptions adapted for different platforms;
- Chatbot interactions that qualify leads 24/7;
- Follow-up sequences that respond to prospect behavior; and
- AI-driven personalization that goes beyond simple automation.
Data analytics plays a pivotal role in optimizing efficiency, measuring return-on-investment (ROI) and implementing real-time adjustments to campaigns. Marketing teams rely on this information to enhance their strategies and digital presence.
1. Data Analytics and Attribution Modeling: Property marketers now use advanced data analytics to measure and improve their digital channels. Multi-touch attribution connects different touchpoints in a renter's experience and shows how well marketing works. The system goes beyond single interactions. It uses probability to analyze how digital touchpoints relate to each other and calculates conversion chances in markets of all types. This method matches how renters behave today as they interact through multiple channels before deciding to lease.
2. ROI Measurement Frameworks: Marketers use complete systems to review marketing returns across channels. These systems track key metrics like website traffic patterns and conversion rates, cost per acquisition for each marketing source, lead-to-lease conversion ratios by channel and cross-channel engagement metrics.
3. Real-Time Optimization Tactics: Modern analytic platforms let you optimize campaigns immediately, allowing for quick or even automated budget shifts based on channel performance. The technology predicts the best way to spend across networks.
Constant performance tracking across channels helps marketers spot weak tactics quickly. Analytics tools review metrics like click-through rates, conversion rates, and engagement levels to improve campaigns right away. Marketers can then move resources to channels that work best while keeping occupancy rates steady.
Today's renters are looking for easy and enjoyable digital experiences across different platforms, which means it’s crucial for businesses to diversify their marketing channels to succeed. Digital marketing is transforming the multifamily housing industry, allowing for ads that feel more personal and relatable. When marketers engage with a variety of channels, they often see higher-quality leads and better conversion rates. Communities that embrace these digital approaches usually find themselves signing more leases and enjoying greater success overall.
