Toronto-based Chestnut Park Real Estate is allowing would-be clients to experience some of the multi-million homes it sells in a more immersive manner.
The luxury real estate broker has included an augmented reality (AR) component in the latest issue of its new custom magazine Invest in Style that adds interactivity to selected ads.
The issue features augmented ads for three clients: Christie’s International Real Estate, the Shangri-La Toronto private residences, and a new development in the city’s Leaside neighbourhood called The Upper House. Two Collingwood-based real estate agents will also run AR ads in December.
Holding a mobile device equipped with the Layer App over the ad enables a potential buyer to view the listing via a video, while providing them with the ability to contact sales agents or visit the agent’s website directly.
Launched in summer, Invest in Style is part of a new lifestyle marketing focus by Chestnut Park. In January, the company hired Deb McGrath in the new role of marketing director.
“I was brought aboard to launch new initiatives and give the brand some recognition and awareness in the marketplace, to stay top-of-mind,” said McGrath. “To get new and existing clients you need to be in front of them. We can’t as marketers always assume that we’re top of mind.”
The company distributes copies of Invest in Style to approximately 60,000 high-income households in central Toronto. In summer, the company also distributes 120,000 copies of the magazine in Collingwood, Muskoka and Prince Edward County, markets where its high-end clientele is seeking recreational property.
Invest in Style is a key marketing tool, said McGrath, since real estate is a segment where people still enjoy looking at glossy brochures and pictures, particularly in the high-end segment in which Chestnut Park operates.
“We all love to fantasize about the next best house,” she said. “Whether we can afford it or not, we all love to look at pretty pictures of homes.” Adding an AR component, she said, further establishes Chestnut Park as a dynamic and cutting edge company.
The AR feature also provides Chestnut Park with valuable data such as who interacted with the ad and for how long, etc. She said such information is highly valuable in a sector that still relies heavily on traditional marketing tactics like direct mail.
“You put out direct mail and hope the phone rings, but it’s hard to track what the engagement level is, and augmented reality gives that to us,” she said.
A successful engagement rate for the program would be between 30-35% said McGrath. The biggest challenge, she said, is encouraging would-be users to download the app required to view the AR content.
Chestnut Park’s luxury focus enables it to stand out in a crowded space. There have been 91,000 units sold in Toronto this year, with McGrath saying demand is currently far exceeding supply.
While AR has had mixed results in North America, McGrath said it has enjoyed “huge success” in Asia and Scandinavia, with real estate proving a particularly strong segment in the latter market.
“I think we’ll get there in North America, it’s just that we’re a little slower to adopt,” said McGrath. “We feel that from a real estate perspective we’re a pioneer, but also a leader of using a user-friendly interface.”
