Trulia adds Spotlight ads and lowers…

…the overall price of their featured listings with a revamp of their ad platform.

Some details… What used to cost $50/month for 10 listings now costs $39/month for unlimited listings.   In addition, as part of Trulia Pro, agents can also add unlimited spotlight ads.  So far, so good…

However, similar to Joel, a move toward “unlimited” ads had me scratching my head a bit.  From a business point of view, the upside of the spotlight ads seem somewhat limited for both Trulia and the ad buyer… especially in that they don’t do much to reward creative or innovative ads.

One of the keys to success of Google’s AdWords program is that users are constantly tweaking their ads and adjusting (often increasing!) budgets for their ad campaigns. With the Spotlight ads, there’s very little incentive to tweak. Sure you might be able to tweak things to get a slightly higher click-through-rate, but at the end of the day, you won’t be able to increase the amount of money you spend on the service (remember I get “unlimited ads for $39/month”), so even if you figured out the “system”, most agents won’t be able to use that knowledge to substantially increase their exposure.

Nonetheless, especially while the system is new with lots of excess inventory, there’s probably a lot of low-hanging fruit to pick up for agents looking to find potential buyers…