What is the ROI on your real estate agency's marketing spend?
Article by: Adriaan Grove (CEO, Entegral) PROPERTY PORTALS – RISKING ALL TO BE NUMBER ONE? This is interesting... 50% of USA portal Zillow's operating expenses are sales & marketing related, yet they are making a net loss. Both Trulia and Zillow will spend close to R500m this year in advertising whilst competing for the same customers. That’s R1 billion! Basically, their increase in marketing is outpacing their user and subscriber growth. They are trying to outdo each other in a highly competitive space, by pumping more money into advertising. Both are listed on the stock exchange, so they are driving the revenue numbers for investors. Do we have a similar situation in South Africa: where excessive amounts are spent by portals on advertising, which must be recovered (from estate agents) over the long term? SOUTH AFRICA – A SMALL SPACE TO COMPETE IN The EAAB lists about 40,000 agents and 10,000 registered agencies - of course the active agents and agencies are far less.