Trademe vs Realestate.co.nz

[elguapo]

What a crock of shit.
Trademe want to work with RE agents?
After calling them turkeys and arrogantly hiking their fees?

Agree, Trademe are actually trying to muscle agent out of the deal entirely. I'm quite surprised they are doing this, they are in a very strong position and I can't see any good that would come from it, most agents would react the same as BK!

[artemis]

Article in NBR today which gives some numbers along with the (mainly) Trademe view. Some extracts below, and the link. It is not behind the paywall at present. Winner takes all comment is interesting, esp as the thrust of the article is that the winner will be TradeMe.

.....
Trade Me Group [NZX: TME] will probably succeed in forcing real estate agents to accept higher fees, adding $22.5 million of property advertising revenue by 2017 as it pushes back on a challenge from smaller, industry-owned rival realestate.co.nz.
...

... Craigs Investment Partners research analyst Stephen Ridgewell said in a report. "We see property as a 'winner takes all' market in New Zealand rather than one where two major players can co-exist."

.....

Some 68 percent of buyers use Trade Me as their primary channel for property hunting, while 6 percent use realestate.co.nz and 4 percent use newspapers, according to data Trade Me commissioned from Perceptive Research. Trade Me estimates it has about a 15 percent, or $18 million, share of the total $115 million property-for-sale classified advertising market in New Zealand.
......

Trade Me's property service has more than five times the traffic of realestate.co.nz and also includes private listings.
.....

http://www.nbr.co.nz/article/trade-me-may-reap-225m-more-real-estate-ad-revenue-hiking-fees-fending-rivals-bd-153098

[Maccachic]

Would be interesting to see the change in numbers since the push by REs, if trademe had 15% of the market where is the other 85% print/agencys??

[artemis]

Would be interesting to see the change in numbers since the push by REs, if trademe had 15% of the market where is the other 85% print/agencys??

A lot of that will be print advertising I think. Which is pricey and probably not too effective if the above numbers are even marginally correct. I have often wondered why REAs push print advertising. Commission on print sales? A way to promote themselves and their franchises? Acting in the best interests of their vendor clients?

[donna]

Lots of $$ on print......it's still the focus for most RE Agents. Other industries spend a higher percentage online.

cheers,

donna

[artemis]

Lots of $$ on print......it's still the focus for most RE Agents........

Any thoughts on why?

[speights boy]

Any thoughts on why?

A generalisation, however...

Internet advert, mainly focused on the property. - As it should be.

Print, especially the supplement and property press has a heavy focus on the REA brand.
The colour, the logo, the agent photo, the type of font.

The Agency is of course able to pass on a significant cost of the Brand Marketing onto the vendor.

[crocoduck]

Totally agree. Forget expensive print media marketing and advertise online for a lot less and more effectively.

[crocoduck]

Any thoughts on why?

One word "branding". No other reason.