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Changing Nature of the Online Real Estate Market and Who to Watch and Learn From

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The online real estate marketing world is rapidly changing. General classified sites are taking on the verticals (and winning), business models are changing, sites are trying to participate in the transaction stream, niche sites are emerging, plus much much more. This session looks at some of the changes that are happening in online real estate marketing and (from my perspective) identifies the top 10 property portals and what we can learn from them.

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Changing Nature of the Online Real Estate Market and Who to Watch and Learn From

  1. 1. Changing Nature of Online Real Estate Marketing and Who to Watch and Learn From Property Portal Watch Conference New York Simon Baker Founder Property Portal Watch
  2. 2. The Good Old Days – Simplicity • Simple market structures – portal vs portal • Focus on first mover advantage • One country to focus on • Simple business model – Listings – primarily for sale, established market – Advertisers – Consumers – Simple interface – Pay to list
  3. 3. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry
  4. 4. Online Real Estate Industry Structure • Vertical sites – Multi sector (new homes, established homes, rentals) – Niche (bankruptcy listings, rentals, retirement living) • Horizontal players / general classifieds • Suppliers to the industry – Traffic – Software – Security – Listing enhancement USD Billions
  5. 5. Example Property Portal Accelerators Company Service Provided Mitula Trovit Nestoria Drive highly qualified traffic on a CPC basis ListGlobally Plug and play international search for any portal + international listing syndication subscription Floorplanner Diakrit Plug and play floor planning solution for portals Transmit Ubiflow Plug and play XML feed management solution Distil Networks Spam and unwanted traffic detection and protection Global Property TV Plug and play video editorial content solution for property portals Adslot Plug and play solution to capture higher yields from display and premium advertising products Property Portal Watch / Property Portal Consulting Quality news, information, advice and guidance on running a property portal
  6. 6. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market
  7. 7. Highly Competitive Industry • Multiple vertical and horizontal players in each market – 10,000+ online real estate sites around the world – E.g. 20 alone in the UAE market
  8. 8. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market 3. High levels of funding
  9. 9. Recent Capital Raisings – Last 2 months • Zameen / Bayut (Pakistan/UAE) – USD 20 million • Propertyfinder.ae (UAE + other markets) – USD 20 million • Housing.com (India) – USD 20 million • Mitula Group (Australia / Spain) – AUD 27 million (via listing)
  10. 10. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market 3. High levels of funding 4. Major players consolidating the markets
  11. 11. Media & Funds Investing in Established Markets In Market Out of Market Examples Axel Springer (Germany) Immonet.de (#2/3) Immowelt.de (#2/3) Seloger (France) #1 Vertical Immoweb (Belgium) #1 Yad2 (Israel) #1 New Corp (USA) Move Inc (#3) REA Group (62%) iProperty Group (via REA) (13%) Prop Tiger (25%), Makaan (100%) Schibsted (Sweden) Blocket Hemnet (Sweden) LeBonCoin.fr (France) Finn.no (Norway) Fotocasa (Spain) Subito (Italy) Willhaben (Austria) Mudah (Malaysia) Tiger Global (US) Commonfloor (India) Daft.ie (Ireland) Idealista (Spain) Private Property (South Africa) Redfin (USA)
  12. 12. Navent – Consolidating the Sth American Market • Focus on Property Portals and Jobs Portals in Sth America • Investment in: – Imovelweb (Brazil) – top 3 – Imovelweb Curitiba – Adondevivir (Peru) - #1 – Inmuebles24 (Mexico) - #1/2 – Plusvalia (Ecuador) - #1 – Compreoalquile (Panama) – Conlallave (Venezuela) – Imovelpro (Brazil – Software) – Union Desenvolvimento de Software (Brazil – Software) – CRM Inmobiliario (Mexico – Software) – Wimoveis (Brazil) – Dridco (Argentina) • Raised significant money to target other Sth American investment opportunities
  13. 13. General Classifieds Buying Verticals General Classifieds Acquisition / Investment Schibstead Hemnet (Sweden) Mercardo Libre Metros Cubicos (Mexico) Guiadinmuebles (MX) Quikr CommonFloor (India)
  14. 14. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market 3. High levels of funding 4. Major players consolidating the markets 5. Agents are rebelling in some markets
  15. 15. Agent Owned and Controlled Sites
  16. 16. Impact of OnTheMarket on Zoopla – DeskTop Traffic 8.6x16.6x
  17. 17. Zoopla Marketing Response
  18. 18. Impact of OnTheMarket on Rightmove – Share Price
  19. 19. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market 3. High levels of funding 4. Major players consolidating the markets 5. Agents are rebelling in some markets 6. Advertising is getting more sophisticated
  20. 20. Mature Sites Moving to Lifestyle Branding Copyright Property Portal Watch 20Version 1.0
  21. 21. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market 3. High levels of funding 4. Major players consolidating the markets 5. Agents are rebelling in some markets 6. Advertising is getting more sophisticated 7. Partnering is occurring
  22. 22. Schibstead / Naspers Partner in Selected Markets • Brazil • Thailand • Indonesia • Bangladesh
  23. 23. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market 3. High levels of funding 4. Major players consolidating the markets 5. Agents are rebelling in some markets 6. Advertising is getting more sophisticated 7. Partnering is occurring 8. Low cost approaches are being adopted in new markets
  24. 24. Rocket Media Example
  25. 25. Changing Nature of Online Real Estate Marketing 1. Emergence of online real estate industry 2. High levels of competition in each market 3. High levels of funding 4. Major players consolidating the markets 5. Agents are rebelling in some markets 6. Advertising is getting more sophisticated 7. Partnering is occurring 8. Low cost approaches are being adopted in new markets 9. Business models are changing
  26. 26. Changing Business Models • Movement from pay to advertise (in some segments) • Pay per lead • Commission stream • Movement into what agents do
  27. 27. 8 Sites to Watch 1. Rightmove – A Highly Focused Business
  28. 28. Running a Highly Focused Business
  29. 29. 56% 58% 60% 62% 64% 66% 68% 70% 72% 74% 76% 2009 2010 2011 2012 2013 2014 2015 (e) Rightmove EBITDA Margin
  30. 30. 8 Sites to Watch 1. Rightmove – A Highly Focused Business 2. realestate.com.au – Value Extraction from Advertisers
  31. 31. Value Extraction from Advertisers
  32. 32. ARPA Probably AUD 3,200-3,500 (Jun 2015) 21% year on year growth (FY14-15) Almost doubled since Jun 2013
  33. 33. 8 Sites to Watch 1. Rightmove – A Highly Focused Business 2. realestate.com.au – Value Extraction from Advertisers 3. Trulia – Consumer Interaction
  34. 34. Consumer Interaction
  35. 35. 8 Sites to Watch 1. Rightmove – A Highly Focused Business 2. realestate.com.au – Value Extraction from Advertisers 3. Trulia – Consumer Interaction 4. VivaReal – Strong Execution in a Large Market
  36. 36. Execution in a Large Market
  37. 37. Clarity of Mission Quality Team Organized Approach Measured Performance
  38. 38. 8 Sites to Watch 1. Rightmove – A Highly Focused Business 2. realestate.com.au – Value Extraction from Advertisers 3. Trulia – Consumer Interaction 4. VivaReal – Strong Execution in a Large Market 5. Zameen – Data Driven Approach to Emerging Markets
  39. 39. Data Driven Approach to Management
  40. 40. 8 Sites to Watch 1. Rightmove – A Highly Focused Business 2. realestate.com.au – Value Extraction from Advertisers 3. Trulia – Consumer Interaction 4. VivaReal – Strong Execution in a Large Market 5. Zameen – Data Driven Approach to Emerging Markets 6. Mitula Group – Strong SEO Performance
  41. 41. SEO Performance
  42. 42. 8 Sites to Watch 1. Rightmove – A Highly Focused Business 2. realestate.com.au – Value Extraction from Advertisers 3. Trulia – Consumer Interaction 4. VivaReal – Strong Execution in a Large Market 5. Zameen – Data Driven Approach to Emerging Markets 6. Mitula Group – Strong SEO Performance 7. Immobiliare – Attacking a Market Leader and Winning
  43. 43. Taking on a Market Leader and Winning
  44. 44. Taking on a Market Leader and Winning
  45. 45. 8 Sites to Watch 1. Rightmove – A Highly Focused Business 2. realestate.com.au – Value Extraction from Advertisers 3. Trulia – Consumer Interaction 4. VivaReal – Strong Execution in a Large Market 5. Zameen – Data Driven Approach to Emerging Markets 6. Mitula Group – Strong SEO Performance 7. Immobiliare – Attacking a Market Leader and Winning 8. EasyProperty/PurpleBricks – Changing Real Estate Agency
  46. 46. Changing Real Estate Agency

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