November 1, 2024

Should You Invest in Direct Marketing or ILS for Multifamily Properties?

Michael Shaug

Founder CEO

When it comes to marketing your apartment community, one of the biggest decisions you’ll face is whether to rely on Internet Listing Services (ILS) like Zillow and Apartments.com or to take a more direct approach by driving traffic to your own website through platforms like Google Ads, Facebook, and other paid media channels. Both multifamily marketing strategies have their benefits, but understanding the strengths and limitations of each can help you make the best choice for your property.
What is ILS Marketing?

Internet Listing Services (ILS) are platforms where apartment communities can list their available units, allowing prospective renters to browse through options in their desired location. Popular ILS multifamily platforms like Apartments.com, Zillow, and Rent.com provide high-traffic visibility, offering a seemingly easy way to get your property in front of a large audience.

 

Drawbacks of ILS Marketing
  1. Competition on the Same Page: One of the biggest disadvantages of ILS platforms is that your property is listed alongside many of your competitors. Renters can easily compare your listing with others in the same area, which can make it harder to stand out—especially if you’re competing with properties offering lower rents or better amenities.

 

  1. Paying to Promote Competitors: When you pay for a premium listing on an ILS, you’re often indirectly helping your competitors. Your listing can drive traffic to the platform, but renters may end up choosing another property listed next to yours.

 

  1. Limited Control: ILS platforms control the user experience, and you have limited options to engage with potential tenants beyond the listing itself. You don’t have direct access to the leads generated and can’t re-market to users who visit your listing but don’t inquire about your property.
 
What is Direct Marketing?

Direct marketing involves driving traffic to your own website through digital marketing channels like Google Ads, Facebook Ads, YouTube, and SEO. Instead of relying on a third-party platform, direct marketing gives you full control over your marketing strategy, targeting, and lead generation process.

Benefits of Direct Marketing

  1. Full Control Over Traffic and Leads: When you use direct marketing, all traffic is sent to your website, giving you control over the user experience, lead capture, and follow-up. You can use advanced tracking tools like Google Analytics and CRM systems to monitor leads, optimize your website, and create remarketing campaigns to stay top-of-mind with prospects.

 

  1. Remarketing Opportunities: One of the biggest advantages of direct marketing is the ability to re-target visitors who didn’t convert right away. If someone visits your website but doesn’t fill out a form or make a call, you can serve them remarketing ads on Google, Facebook, or YouTube to re-engage them.

 

  1. Targeted Campaigns: Direct marketing allows you to be more precise in your targeting. You can tailor your ads based on specific keywords, geographic locations, and audience demographics, ensuring that your ads are seen by people who are most likely to rent from you.

 

  1. Better ROI Control: When you invest in direct marketing, you have more control over your budget. You can adjust spending based on the performance of individual campaigns, keywords, or audience segments, maximizing your return on investment (ROI).

 

Drawbacks of Direct Marketing
  1. Requires More Management: Direct marketing is more hands-on than ILS marketing. You’ll need to regularly monitor and optimize your campaigns to ensure they’re delivering results. This often requires expertise in paid search, social media, and analytics, or hiring an agency that specializes in apartment marketing.

 

  1. Takes Time to Build Momentum: Building an effective direct marketing strategy, particularly with organic traffic through SEO, can take time. While paid search can deliver quick results, SEO efforts may take months to generate significant traffic.

 

  1. Higher Initial Investment: While direct marketing can offer better long-term value, there may be higher upfront costs. Running Google Ads, creating video content for YouTube, or building out a robust SEO strategy requires an initial investment, but it typically pays off in more qualified leads and lower long-term costs per lead.

 

 
ILS vs. Direct Marketing: Which Is Best for You?

Deciding between ILS and direct marketing depends on several factors, including your budget, property size, and long-term goals. Here’s a comparison to help you weigh your options:

 

Factor

ILS Marketing

Direct Marketing

Cost

Pay per listing, often higher ongoing costs

Initial investment in ads, but more budget control over time

Lead Control

Limited control over lead flow and data

Full control over leads, traffic, and remarketing

Competition

Listed alongside competitors on the same platform

Direct traffic to your website, no side-by-side competitor listings

Targeting

Limited targeting based on location or filters

Highly targeted campaigns based on keywords, behaviors, and location

Long-Term Value

Steady flow of leads but ongoing reliance on third-party platforms

Higher upfront costs, but better long-term ROI and lead quality

 

Conclusion

While ILS multifamily platforms may offer initial exposure and ease of use, they ultimately leave your property dependent on a third party and limit your control over the leads and traffic they generate. Direct marketing, on the other hand, gives you complete ownership of your traffic, better targeting options, and the ability to build long-term value through remarketing and SEO.

In the long run, direct marketing offers better control, stronger lead generation, and a higher return on investment, making it the superior digital marketing multifamily strategy for communities that want to build sustainable, long-term success.

We’re excited to hear what’s on your mind!

But first, let's learn more about you and your project.