Google Maps’ launch of real estate listings could pose a threat to Australia’s real estate portals according to Frost & Sullivan’s latest report, Australia Online Classifieds Advertising Market 2010.
The report describes Google Maps’ addition of real estate listings as “the most significant competitive development in real estate online classifieds advertising”.
“[Google Maps real estate] could challenge the established online real estate publishers if a critical mass of estate agents shift online classifieds advertising spend to the alternative portals that list on Google Maps, or even upload listings directly onto Google,” the company says.
Frost & Sullivan’s report goes on to say that a second issue in online real estate classifieds is the potential emergence of “significant” For Sale By Owner websites. “These sites already exist, however their impact on the market to date is limited with over 95 per cent of home sellers using an agent to market their property,” the company says.
The report notes that the Australian online classifieds advertising market grew by only 2.5 per cent in 2009, finishing the calendar year valued at AUD$506 million. In the 2008 financial year, the market grew by 28 percent.
While growth was slow in 2009, online now accounts for an estimated 25 per cent of total classifieds advertising expenditure, up from 23 per cent in 2008.
But Frost & Sullivan predicts the rise of social media, along with “maturity” in the market, will cause growth in online classifieds advertising to taper off over the next three years, reaching $762 million by 2013.
Phil Harpur, ANZ Senior Research Manager at Frost & Sullivan, had this to say about the growth of online classifieds in Australia:
“Over the past few years, the fundamental driver behind the growth of the online classifieds advertising market has been the migration of expenditure from print classifieds to online classifieds, as advertisers have gradually switched their expenditure to the online channel, or started using the online channel alongside the print channel.
However, as the Australian online classifieds market matures, it is, like the print classifieds market, becoming more closely correlated with economic conditions. This is not to say that the migration from print to online has ceased, but it is no longer the overwhelming market force that it was in the early stages of growth of the online market, where factors such as the state of the economy had much less relative impact on overall online classifieds growth.
As select sectors in the online classifieds market, such as the recruitment sector, have established themselves as more popular than print, both companies and consumers are questioning whether they also need to advertise on the print channel at all.”
Advertising Partner
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{ 9 comments… read them below or add one }
Of course GoogleMaps real estate is a threat to any portal that charges their real estate agent clients for content. That is why we are seeing the likes of niche marketers http://www.watersidepropertysales.com.au and other general property portals entering the market a with no charge for content policy. There is still time for the majors to get on board, but if all they can do is pretty up their sites and add more functions,they will be left behind.
Apparently there is another overseas portal also starting in AUS soon. No, not Nestoria. Do anyone know anything more about this?
Hi Tatiana,
There is a new niche market portal just started up in Australia, http://www.watersidepropertysales.com.au The portal is dedicated to providing a platform for Australian real estate agents who are frustrated that their properties that are on or near waterways in Australia, cannot be easily found through the major portals. The portal does not charge agents for listings.
Vic, rather than just spamming the comments of this blog, why not write a press release and give them something interesting to write about your new site.
What? you mean he works for watersideproeprtysales?
Craig,
Will do that. Have a few small functions to complete before going to a national launch and media release. Have you seen our site http://www.watersidepropertysales.com.au ?
Mate, Appreciate you’re keen to get the name out and about but you’re essentially spamming… AKA turning people off.
Java, that’s a broad brush your’e wielding. Which PEOPLE are turned off?
Not having a go Vic. Just letting you know that in blog or forum land what you are doing is considered spam and turns people off. Other than you, three other people have commented on this post, two of which have said you spam isn’t a good look.
Wish you all the best though. Good to see people having a crack.