It has been almost a decade since OnTheMarket, backed by a consortium of heavyweight high street agents, including Savills, Knight Frank and Glentree Estates, launched in a bid to challenge the dominance of Rightmove and Zoopla.
Supported by a multi-million pound marketing media campaign and its ‘one other portal’ rule – which banned its agents advertising on both Rightmove and Zoopla – plus prohibiting online agents from listing, OnTheMarket sought to increase market share, mainly at the expense of Zoopla, which some argue strengthened the position of Rightmove.
Having established itself as the UK’s third largest portal in terms of consumer traffic and agent support, OnTheMarket firmly believed that it was on course to replace Zoopla as the number two property portal by the end of 2016 on its way to achieving its medium-term objective of challenging the market leader, Rightmove.
But due to a lack of consumer traffic it has never quite managed to succeed in regaining power over the homebuyer audience and in turn returning control to the traditional high street brands.
However, while OnTheMarket has so far failed to dislodge Rightmove and Zoopla as the two biggest portals, it has made some inroads into this highly competitive market, and now believes it is destined to reach the top after recently being acquired by CoStar.
Jason Tebb, president of OnTheMarket, commented: “We believe that we are now the fastest growing residential portal in the UK. In a very small space of time following the acquisition of the business, we have initiated the first phase of a multiyear program to drive consumers to OnTheMarket which will significantly increase the quality of valuable leads to our agents at fair and sustainable prices.”
“We believe we can create the number one property portal in the UK, leveraging CoStar Group’s expertise and resources,” he added.
Tebb’s comments come as OTM reveals it has attracted more than 1,000 new agency members and 57,000 listings since the takeover.
It adds that monthly leads to agents are up 81% since the acquisition and unique monthly visitors have also increased 81% annually. But EYE was unable to verify this data.
We have requested further information, including the figures. But the signs are that OTM, backed by CoStar, offers plenty of room for growth.
We are a customer. Haven’t noticed anything change since Costar came on board.
Leads are still 3rd behind ZPG and RM.
They’ll only get to number 1 if they:
a) spend huge £££ on marketing campaign to get the public to use the product,
b) come up with some sort of innovation to create demand to underpin a)
c) create packages for agents which are lower price that RM and ZPG or at least more aligned to success not leads
The only possible route to success I can see for them is to take share from ZPG who are generally distracted by owning software companies, valuation companies etc.
And then they’ll still be Number 2.
I wish them well but so far its all spin and no substance.
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Its there intention to do all the things you’ve mentioned and more they have very deep pockets. Last year alone, over 3000 agents departed RM, a trend likely to persist as OTM/CoStar begin implementing their strategy.
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Genuine question: OTM (which I hope will make online platforms cheaper) are giving it away to agents for free at the moment and the sales chap I spoke to last week said they would spend tens of millions and hundreds of millions if they had to to become number 1. Great, but at some point they are going to want there money back and to make a profit so how will it stay cheap and for the agents by the agents etc etc or am I missing something?
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The key aspect you’re overlooking is that if all agents were using OnTheMarket (OTM) and paying a lower fee compared to Rightmove, then OTM would generate greater revenue.
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Wishful thinking, I just cant see it. The long game will be agents in the same boat they are now. Spicerhaart put a lot of money into OTM when it started but still use Rightmove. Even if every agent went to OTM only over the next 5 years, and OTM spend £100m to get to this point, plus what they laid out at the start, they will want there money back and some.
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Seems to me if your leads are rubbish regardless of where you put them it is because your stock is rubbish.
Buyers ( decent ones ) will find your stock if it’s worth having.
Bought my last car from 600 miles away, went to view it with Uncle Michael on one of his cheapy flights and drove it back, first property I bought from a vanity EA in a basement that I swear only other EA’s knew was there.
Yet I’m still on RM along with most of the readers of this newsletter. I know I’m being an idiot. Leaving them seems less risky now though than I can recall over the last decade and a half.
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