Famous proptech analyst has stated that he thinks Purplebricks is not only a real estate agency, but also an advertising firm, and it's a huge success in the United Kingdom.
Mike DelPrete - former head of strategy at the property portal Trade Me in New Zealand and now a respected international real estate consultant - says that a key measure of Purplebricks success is the effectiveness of its advertising and marketing spend, as much as other more conventional estate agency measures.
Having analysed the company’s most recent figures, DelPrete says: “For every £1 spent on marketing, Purplebricks generates revenues of £3.60 in the U.K., £0.92 in Australia, £0.36 in the U.S., and £4.38 in Canada.”
DelPrete says Purplebricks’ figures released last week - and which appeared to prompt a further fall in the agency’s share price - are actually not as bad as they looked at first sight; the firm admitted it lost £27.3m over the first half of the year and modestly down-scaled its full year expectations.
“Purplebricks' core UK market continues to grow and is meaningfully profitable, proving that the model works. Key performance indicators in its other three markets reveal a deeper story of investment, growth, and challenges” says DelPrete, who also insists that the recent collapse of Emoov does not indicate a fatal flaw with the online model."
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