New Social, AI Search Trends Upend Builders' Reliance On Google

John McManus -

Homebuilders' model park trap fences – forcing new-home seekers through a gauntlet of new-model floorplans to escape having stepped into a community sales center – once did the "captive audience" job they were designed to do. In rare cases, they may still prove to be effective.

That changed. Time, consumer trends – a pandemic – and an array of friction-averse home shopping behaviors came for them. They're mostly artifacts of bygone homebuilding marketing and sales practices that technology and consumer insight improved on since.

Could those self-same factors – time, generational consumer preferences, and post-pandemic era home purchase behaviors – disrupt one of the most impactful new home marketing and sales disrupters of the digital native era, Google search?

Never mind the macro-economic turbulence the latest jobs data has brewed up. The landscape of new home search and marketing is also undergoing a seismic shift, with Gartner predicting search engine volume will drop 25% by 2026, driven by evolving consumer behaviors and technological advancements..

Starting before the end of the Global Financial Crisis, home builders have relied heavily on Google search and SEO to engage, nurture, and close new home shoppers. However, recent insights from Chris Laskowski, Marketing Director at New Home Star, suggest that this bedrock of their marketing strategy is fully at risk of being undercut. Younger generations are turning to social networks like TikTok and Instagram and AI services like ChatGPT to find local information and connect with home builders, signaling a significant disruption in the industry.

The Shift in Search Behavior

Demographic Changes

A major factor contributing to this shift is the changing preferences of Generation Z. A recent Forbes analysis highlights that 67% of Gen Z users prefer Instagram for search, with TikTok following closely at 62%.

In contrast, Google, which once dominated search, now ranks third among leading-edge Generation Z adults, in the first stages of household and family formation. This preference extends to local searches, traditionally a stronghold for Google Maps, further eroding Google’s dominance.

AI-Generated Results

Another critical development is the rise of AI-generated results. As AI technologies like ChatGPT become more sophisticated, they are increasingly used to answer queries that would previously have driven traffic to search listings. According to a study by Search Engine Land, 60% of searches now result in zero-clicks, where users get their answers directly from AI overviews without visiting any website.

According to New Home Star's Chris Laskowski, this trend is expected to grow, potentially encompassing high-intent, bottom-of-funnel queries like “best builders in this area” or “available homes with specific amenities,” directly impacting how home buyers find and interact with home builders online.

Impact on Home Builders

The declining effectiveness of paid search campaigns is a significant concern. Historically, paid search has been a cornerstone of home builder marketing, an effective investment proven to drive foot traffic.

Paid search has been the bread and butter of many home builders, providing a scalable and transparent way to drive foot traffic to model homes," says Laskowski. "However, with fewer searches on Google and increased competition for these clicks, the cost of paid search campaigns is rising. Builders must understand that the effort they’ve done in the past will not produce the same ROI."

In other words, Laskowski says, the cost of paid search campaigns is rising. A recent report indicated that Google search advertising spending in the U.S. increased by 17% year-on-year in the first quarter of 2024 despite a shrinking pool of prospects. This economic imbalance means higher prices for lower returns, challenging builders to find new ways to reach potential buyers.

Organic Search Campaigns

Organic search strategies are also undergoing a transformation. Most homebuilder websites are not optimized for AI-generated content. Effective SEO for AI involves more than traditional practices; it requires well-structured content, comprehensive FAQ sections, and topic clusters that provide detailed, high-quality information.

Builders must write with AI in mind, ensuring their content is easily discoverable and valuable," Laskowski advises. "The content must align with AI queries to be cited effectively. This shift is crucial as AI overviews become more sophisticated, potentially encompassing high-intent, bottom-of-funnel queries directly impacting how home buyers find and interact with home builders online."

Google's AI, for instance, creates overviews and then matches them to sources, meaning content must be directly aligned with potential AI queries to be cited effectively.

Adaptation Challenges

Change is difficult, particularly in an industry where traditional marketing strategies have been highly successful. Builders must now adapt to meet growth projections in a shifting landscape. This adaptation will likely involve significant organizational changes and resource reallocations, potentially causing disruptions in marketing operations. Seasoned professionals accustomed to past successes may find it challenging to pivot, leading to a possible reshuffling of roles within marketing teams.

Strategic Pivot: Turn Disruption into Opportunity

One of the most immediate and effective strategies builders can employ is investing in social media search. Platforms like Instagram and TikTok are becoming the go-to places for information searches, particularly among younger generations. This shift presents a unique opportunity for builders to reach potential buyers where they are already active.

Short-Form Video: Creating engaging short-form video content can capture the attention of potential buyers quickly and effectively. Showcasing new homes, virtual tours, and customer testimonials through short videos can significantly increase visibility and engagement.

Influencer Marketing: Partnering with influencers who have a strong presence in the home and lifestyle space can help builders tap into their established audiences. These influencers can provide authentic endorsements and drive traffic to builder websites and social media profiles.

Employee Advocacy Programs: Encouraging employees to share content on their personal social media accounts can amplify reach and credibility. Employees can offer behind-the-scenes looks, share personal stories, and engage with potential buyers on a more personal level.

Social media search isn't just a trend," Laskowski says. "It's where the future of home buying begins. Builders who embrace short-form video, influencer partnerships, and employee advocacy will find new and effective ways to connect with their audience."

Shift SEO Strategies

Optimizing for AI-generated content is crucial as search behavior evolves. Traditional SEO practices need to be enhanced to cater to AI overviews and zero-click searches.

Optimize Content for AI Overviews: Builders should structure their content with AI in mind. This includes creating comprehensive FAQ sections, topic clusters, and well-designed heading structures that align with AI-generated results.

Update Websites with AI-Friendly Features: Incorporating features like FAQs, topic clusters, and detailed pillar pages ensures that content is rich and valuable. This not only helps with traditional SEO but also makes it easier for AI to use and cite the content.

High-Quality Content: Investing in high-quality, valuable content that addresses specific queries can help builders stand out. AI tools reward content that provides clear, detailed answers by citing it in overviews.

Reputation Management: As AI-driven searches begin to include customer reviews and ratings, managing online reputation becomes vital. Encouraging satisfied customers to leave positive reviews and addressing negative feedback promptly can help build a strong online presence.

AI is changing the game, and builders need to adapt their SEO strategies to stay relevant," says Laskowski. "By focusing on high-quality content and optimizing for AI, builders can ensure their information is discoverable and valuable."

Embrace Emerging Strategies

To further diversify marketing efforts, builders should explore and invest in emerging strategies that align with the changing digital landscape.

OTT Advertising: Advertising on streaming services (Over-The-Top media) can reach a highly targeted audience. Video ads on platforms like Hulu or YouTube can be tailored to specific demographics, increasing the chances of reaching potential buyers.

Experiential Marketing: Creating memorable experiences can leave a lasting impression on potential buyers. Hosting virtual open houses, interactive webinars, or community events can engage audiences in a meaningful way.

Customer Delight Campaigns: Focusing on customer satisfaction and long-term engagement can drive referrals and positive word-of-mouth. Builders can develop programs that go beyond the initial sale, such as personalized follow-ups, exclusive events for homeowners, and comprehensive support services.

The disruption in search behavior is an opportunity to explore new and innovative marketing strategies," Laskowski notes. "OTT advertising, experiential marketing, and customer delight campaigns can help builders connect with buyers in more personalized and impactful ways."

Data-Driven Decisions

Understanding and leveraging data is essential for optimizing marketing efforts. Builders need to collect and analyze data to make informed decisions about where to allocate resources and how to adjust strategies.

Benchmark Performance: Having clear benchmarks for performance allows builders to track progress and identify areas for improvement. This includes understanding where leads are coming from and which marketing efforts are most effective.

Adapt to Market Trends: Builders should stay informed about market trends and be ready to pivot strategies based on changing consumer behaviors. Regularly reviewing data and adjusting tactics can ensure marketing efforts remain effective and relevant.

As the landscape evolves, data becomes the backbone of successful marketing strategies," Laskowski explains. "By making data-driven decisions, builders can adapt quickly and effectively to changing trends."

As Chris Laskowski emphasized, this is a permanent change that will impact the industry for years to come. The builders who recognize and respond to these trends now will be best positioned to succeed in the future.

Search will never be the same," Laskowski says. Anyone who believes so may as well just go out and install those trap fences in the new model park.