Facebook is building its presence in the US property market – with implications for portals everywhere.
Proptech expert Mike Delprete said: “Facebook represents a clear and present danger for real estate portals around the world. It’s here, it’s growing, and it’s coming to eat your lunch.”
Until recently Facebook appeared to have limited ambitions regarding the property market.
However, within the last three months it has signalled a shift in strategy – although this is so far only apparent in the US.
In September it launched ‘dynamic ads for real estate’ which allows agents to promote listings to Facebook users.
Last month it announced a major update to its ‘property rentals’ section on Facebook Marketplace, allowing mobile users to search for rental properties using a variety of new filters.
It also paired up with rental platforms Zumper and Apartment List to directly syndicate their listings to Facebook.
Delprete says that Facebook is actively encouraging estate agents to upload listings, and is offering a far cheaper rate of return on investment than America’s giant portal Zillow.
Controversially, however, Zillow has made a ‘frenemy’ of Facebook.
Agents can go directly to Facebook to spend their advertising dollars, or they can continue spending with Zillow and get exposure on Facebook.
He said: “This presents the billion dollar question: will Facebook attempt to compete directly with real estate portals?”
His conclusion is that it will not do so in the short term, but “things could get worse for portals in the long run”.
He concludes: “Facebook’s deeper move into real estate – both in rentals and for sale listings – represents a strategic threat to a range of existing businesses. For real estate portals in particular, the first battleground is agent premium spend.
“Facebook is giving agents a new, powerful choice of where to spend their money for leads.
“This situation poses quite a dilemma for real estate portals. Do they cooperate with Facebook as ‘frenemies’ as Zillow has done, or do they work to stifle Facebook’s momentum at all costs?
“It is our belief that Facebook is here to stay in real estate, and will continue providing a positive ROI to agents looking for leads.
“In the near term, real estate portals need to take action to cement their position as the best place to advertise properties for sale and for agents to generate leads.
“The good news, for portals, is that they have a fighting chance.”
Comments (4)
I commented on this some time back once Facebook got their act together, that the likes of disruptors PB & Co would die as it is likely to be their kind of customer who in the main will be interested. Those still wanting full service will continue to use the High Street. All agents need to plan for is getting their own Facebook up and running … many have! As to the future of web portals like RM & Z, well if I were them I would be worried if it takes off, after all it is the mobile phone that has killed off the PC and the next step of evolution. Shall be interesting to see what happens to some share prices over the next year, look for the sudden cash-in by investors, particulary disruptors.
Lol…
This competition is not only for Rightmove and Zoopla….It’s for High street agents as well.
Again, by 2020…50% high street agents won’t be on high street 🙂
Change the record, pal – the one you’re playing the @r$e out of is scratched and worn.
I would agree with Mr Delprete (now THERE’S a first…) that RM and Z have a serious competition problem coming their way…
…but it’s a lot closer to home than California.
Remember where you read it, folks – proof that PropertyIndustryEye is “WHERE NEWS COMES FIRST”!