We would like to ensure that you are still receiving content that you find useful – please confirm that you would like to continue to receive ILO newsletters.
01 June 2018
Digital advertising is exploding. In just the first six months of 2017 alone, internet advertising revenues exceeded $40 billion. Promoted ads are dominating social media platforms like Facebook and Twitter, and it is impossible to surf the internet or use mobile apps without having to watch or click through a myriad of dynamic ads to get to the underlying content. Why is this? Because digital advertising works.
Real estate owners, developers, and managers are getting in the digital advertising game, as well. For example, a 2015 market research report found that real estate developers spent approximately $1.5 billion on online ads in 2014, but that figure was projected to grow to almost $2.7 billion by 2019 (a more than 80% increase). The world of commercial and residential real estate is a competitive environment. Tenants are looking for key differentiators—good brand recognition, a sophisticated online presence, or an interesting mobile app can make all the difference.
The digital ad space is also becoming increasingly complex. There are numerous types of ads available to a potential real estate marketer: native ads, banner ads, pop up ads, flash videos, social media promoted ads, search engine ads, targeted ads, tracking ads, among others. There are other considerations as well. Is the real estate firm seeking to collect information on its targets and engage in tracking? Does the real estate firm plan to use artificial intelligence (AI) and machine learning to determine the scope and location of its ad buys in order to maximize its return on investment?
Because of the complex and high-stakes nature of this arena, many real estate owners, developers, and managers are hiring third-party firms to design, develop and implement their digital marketing strategies. When engaging a digital marketing firm, there are a few key contractual issues to consider:
Digital advertising is an effective and efficient way to brand a property, but it is also increasingly complex and nuanced, which is why many real estate firms subcontract this work to creative agencies that specialize in digital ad strategy and development. Engaging a third party to provide this service, however, can introduce risk in a number of areas, including reputational risk, business risk, risk to data, and legal risk. Therefore, real estate firms should consider how to mitigate those risks in their contracts with digital advertising partners.
For further information on this topic please contact James W McPhillips at Pillsbury Winthrop Shaw Pittman LLP's Washington DC office by telephone (+1 202 663 8000) or email (email@example.com). The Pillsbury Winthrop Shaw Pittman LLP website can be accessed at www.pillsburylaw.com.
This update has been reproduced in its original format from Lexology – www.Lexology.com.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription.