Zoopla has once again issued a press release commenting on the performance of OnTheMarket (OTM). As with the other releases, Zoopla is relying on Hitwise information to show that OnTheMarket is failing to make in roads into the UK consumer market.
Back in January we provided a prediction as to what we expected to happen with OTM. While we expected that the first 6 months would be a "honeymoon" period for the company, it seems that this may be coming to an end a little earlier than expected.
While they have done a good job at securing listings (including some unique listings when compared to Zoolpa), they have failed to grow their audience. This is the real challenge for them now. Listings are one thing, but you can not claim to be #2 in the market based on the number of listings - if this was the case, aggregators such as Mitula and Nestoria would be clear market leaders.
In reality the number 2 player will be the site that delivers the results and this has to be measured in leads generated. With the traffic at the levels it is at the moment, OTM can not be delivering the same volume of leads as Zoopla. OTM may claim they have higher quality leads but this extremely hard to prove and also extremely unlikely.
Interestingly, the team at OTM have been quiet over the last few weeks. Perhaps they are focusing on traffic growth!
Here is the latest press release from Zoopla.
Almost three months after its launch the latest data suggests that Onthemarket (OTM) may not be making the right moves with consumers as it struggles to build audience momentum.
The latest data from Hitwise shows that OTM traffic has actually been in decline for the last few weeks after peaking in mid-March.
Far from closing in on market leaders Rightmove and Zoopla, despite the bold predictions from some associated with it, OTM traffic remains well behind the audience levels of PrimeLocation and other UK property websites including Spareroom or Holidaylettings. And the gap between OTM and the market leaders has actually widened over the past few weeks.
Lawrence Hall of ZPG commented, “At the end of the day, OTM is simply a marketing channel like any other and will need to ensure that its audience levels justify its fees. This is even more the case for OTM given that it has required its members to give up a huge audience. It is hard to see how agents can justify paying anything meaningful for marketing on OTM at these current traffic levels.’