Our recent trip to the Self Storage Association Fall show in Las Vegas was, as usual, revealing. We want to share our latest findings from sessions we attended, and information found. We are only the messengers!
Search is costing more
Extra Space were gracious in sharing some of their online cost information and it really is reflective of what we see here in Australia, with same store marketing expenses escalating online since 2016.
They have seen close to 50% increase in online “cost per click” since 2016 and they revealed that common search terms like:
“Storage near me”, “Self Storage”, “Storage Units” and ‘Cheap Storage Units” were all in excess of $10.00 USD per click.
They had also discovered that as the industry matures evidence of larger institutions are being prioritised by Google search.
They also commented that non Self Storage businesses were aggressive bidders, like “Clutter” on top spots, working to build market share. These operators do not have the investment in real estate that traditional operators do and were spending up big to grab search results. This model is like UBER, no cars but aggressive ads.
Further investigation reveal that the average Self Storage site spends between $2000 and $3000 on online marketing monthly to attract leads, one group spends $2400 per month on ad spend in established markets.
Arguably, demand is higher in the US for Self Storage and its estimated 10% of the population use Self Storage.
The biggest increase though has been in the numbers of storers originating their Storage rental online.
8 out of every 10 rentals are now attributed to the journey starting online. Ensuring your Self Storage website’s up to date and has the best offers will help you reduce the chances of losing that customer who is online now on your own website from going to the opposition!
In 2018 Extra space budgeted for a 15% increase in online ad spend for its sites. Reality is spending is up by 24% by them to remain competitive.
Public Storage with more than 2,200 sites reports double digit cost increases in online advertising spend and its more in competitive markets.
The average Self Storage site has more than 10 competitors in the US. We are a bit luckier here in our region with the average at less than 1.
Maximising the spend may not be the answer: Targeting the spend is a better choice and the Self Storage experts at R6 Digital® can help you target your ads to get the best value and lowest cost per click. (CPC).
The is no doubt that online marketing is costing more. Essential to this sped is the correct targeting of ads that can deliver. Ask us how.