PPC vs. Direct Mail for Real Estate Investors (2025)

TL;DR

Both channels can produce deals. PPC is faster, easier to track, and scales well in competitive metros—but costs per click have risen. Direct mail reaches off-market sellers others miss and can deliver lower cost-per-lead (CPL) in some markets, but response rates vary widely and campaigns require consistency. Most thriving investors blend the two.

Key Benchmarks (so you can compare apples to apples)

Metric	PPC (Search)	Direct Mail
Typical cost input	Avg. CPC for real estate ads was $25.20 in 2024	Postage from $0.242–$0.247 per piece (EDDM); turnkey REI postcards often ~$0.65–$1.30 all-in depending on format/volume
Typical response / conversion signal	Landing page medians across industries ~6.6%; investor data shows some states 6–13%+ from paid traffic	Many REI operators report ~0.5%–2% responses (calls/texts); outliers higher with great lists/creative
Tracking	Click-to-lead and call tracking straightforward	Must set up call tracking / unique numbers and disciplined data entry

PPC for REIs: What the data says

• Costs & volume: Real-estate ads averaged $25.20 CPC in 2024, so a $3,000 budget might buy ~120 clicks. If your landing page converts 6–10%, that’s ~7–12 leads/month (your market may be above/below that range).

• Conversion potential: Investor data shows paid traffic conversion rates can exceed 10% in certain states (e.g., North Dakota 13.34%, New Mexico 10.40% in Carrot’s dataset), underscoring the importance of geo targeting and market competition.

• Attribution & optimization: Call tracking materially improves budget decisions; research has found heavy PPC spenders were far likelier to reduce CPL when using call tracking.

PPC Pros

• Fast to launch and scale; you target high-intent searches like “sell my house fast [city].”

• Tight geo, keyword, and schedule control; easy A/B testing.

• Clearer attribution across calls/forms with platforms like CallRail.

  
  

PPC Cons

• Competitive metros drive up CPC and CPL.

• Requires active management (negatives, bidding, copy, LP testing) to stay profitable.

• Lead quality varies by keyword intent (“we buy houses” vs. generic buyer terms).

  
  

Direct Mail for REIs: What the data says

• Response reality: Across investors, realistic response ranges are ~0.5%–2%, with execution/list quality driving outcomes; some operators share 1–1.5% as “good” nationally.

• Industry context: Broader DMA/ANA studies regularly show mail out-pulling many digital channels on response (e.g., ~5% prospect / 9% house lists reported in DMA summaries), but that’s cross-industry—your REI mileage will depend on list motivation and follow-up.

• Costs: Expect postage near $0.24–$0.25 for EDDM flats; turnkey investor postcards commonly land ~$0.65–$1.30 per piece all-in depending on volume/format and whether it’s “handwritten” style.

Direct Mail Pros

• Reaches off-market sellers that aren’t searching Google.

• Tangible piece builds trust and brand recall; long tail (drawer effect) produces delayed calls.

• Highly targetable lists (equity, absentee, pre-foreclosure, inheritance, probate, tired landlords).

  
  

Direct Mail Cons

• Slower feedback loop; you must commit to consistent, multi-touch mailings.

• Ops heavy: list hygiene, returns handling, dedicated follow-up cadence.

• Attribution can be fuzzy without unique numbers/URLs.

Which wins? Use market math.

Example (for comparison only):

• PPC: $3,000 budget ÷ $25.20 CPC ≈ 119 clicks. At 6–10% LP CVR, 7–12 leads. If your close rate is 1 deal per 10–15 leads, you’re pacing a deal every 1–2 months.

• Direct Mail: 5,000 postcards at $0.70 all-in ≈ $3,500. At 0.5%–1% response you’d see 25–50 calls; depending on qualification and sales process, that might be 8–20 true leads. Close rates vary widely by list and follow-up.

Takeaway: In hot metros with saturated investor keywords, PPC’s CPL can be higher, but speed-to-lead and intent are strong. In targeted niche lists (probate, code violations, tax delinquent), mail can drive a steadier CPL with less competition—if you stick to a cadence and call back fast.

The hybrid plan top investors run

1. Own high-intent PPC for your core geo (search-only first). Start with exact/phrase on “sell my house fast [city]” + “we buy houses [city],” strict negatives, and a single-purpose seller LP. Track calls with dynamic numbers.

2. Mail specialty lists (equity + distress filters) on a 4–6 touch sequence: letter → postcard → letter → postcard, rotating offers and credibility proof.

3. Unify attribution: one phone number per campaign/list, plus a dedicated landing page URL in mail. (Call tracking reduces wasted spend and clarifies CPL by channel.)

4. Speed-to-lead SLAs: under 60 seconds on PPC calls; same-day call backs on mail.

5. Monthly scorecard: CPC, CVR, CPL, cost-per-appointment, contracts, revenue per lead (RPL).

   
   

Pros & Cons Summary

Choose PPC when…

• You need leads this week and can answer calls immediately.

• You operate in mid-tier or less competitive states where paid traffic CVR is stronger.

• You want crystal-clear attribution and iterative testing.

Choose Direct Mail when…

• You have great lists and a dialed follow-up process.

• You’re targeting off-market inventory unavailable via search.

• You can commit to multi-month consistency and want broader market coverage at a predictable cost per outreach.

Best results usually come from running both and letting data decide where to lean.

Contact Lead Farmers PPC today to learn more about how we can integrate with your existing marketing system, or to consult on your marketing funnel!