Online Marketplaces Adjacencies Report 2022: We Analysed 180 Services From 55 Leading Portals

April 7, 2022
Share this Post: 

Online real estate portals have been diversifying their businesses to get closer to the lucrative parts of the transaction for many years. The tactic of moving into revenue streams that are adjacent to property marketing is an important avenue of growth for many companies.

We analysed 55 of the biggest real estate portal companies in the world to assess over 180 of the products and services that they put out alongside their traditional property marketing services and answer some key questions around the subject...

The following is a summary of the report, we highly recommend viewing the full report which includes 8 key questions and answers around portals' adjacent revenue streams. If you're subscribed to our mailing list, a link to the report is already in your inbox.

 

Which portals are involved in the most adjacencies?

We went through every product that portal companies are tied to which are adjacent to real estate transactions. Whilst Zoopla may only be linked to many products through the ties its owner Silver Lake has to RVU, the British portal leads the way in terms of the number of adjacent products and services.

Also at the top is the Indian portal Magic Bricks which has an impressive range of lead generation products for all manner of services related to the home, from pest control to religious home-layout consultancy.

Online Marketplaces Adjacencies Report 2022 Number Of Agencies

 

What type of companies are getting involved?

Real estate portal websites are owned and operated by all sorts of companies. We found that the companies that are leaning into revenue streams adjacent to property transactions the most are publishers - perhaps because by and large they are older companies and naturally have more ties with other industries.

As for the companies that are diversifying the least, unsurprisingly it's the portals owned by agents groups who don't want to rock the boat and risk taking any revenue that their agent members could be generating directly for themselves.

Online Marketplaces Adjacencies Report 2022 Average Number Of Adjacent Revenue Streams

We also found that portals that are considered the #2 in their market are diversifying slightly more than market leaders on the whole. This makes sense as they often have as much technical capacity as market leaders but have less pricing power with their traditional listings products.

Online Marketplaces Adjacencies Report 2022 Average Number Of Adjacencies 2

 

Which adjacencies are they getting involved in?

Mortgages are perhaps the closest and most relevant adjacent revenue stream for portals and they are almost all involved in them - though the vast majority we saw only have skin-deep lead generation products for third party mortgage lenders.

Software (mostly for agents) and insurance are the two other big industries that portals are getting involved in. We counted 50 different adjacent industries, aside from their traditional marketing role, that the leading 55 portals are involved in.

Online Marketplaces Adjacencies Report 2022 Type Of Adjacencies

 

Who are these products intended for?

Unsurprisingly, almost three-quarters of the products we saw connected to real estate portals are marketed at consumers. This is, after all, the group that matters most in terms of branding and whose desire to shop around when moving home keeps the portals in business.

Over recent years we've seen portal companies release more products aimed at landlords and this segment represents around 10% of the products and services we saw.

Online Marketplaces Adjacencies Report 2022 Adjency Customer Type

 

Are portal companies developing their own products or using M&A?

Three-quarters of the products we saw looked to have been either built by portal companies in-house or through a partnership with a specialist company. This makes perfect sense when the vast majority we saw were simple lead-generation widgets.
By and large portal companies are opportunistic when it comes to adjacencies and don't spend the big money unless they have huge budgets and a clear plan. Most of the acquisitions are being done by the largest real estate portal companies in the world.

Online Marketplaces Adjacencies Report 2022 Created In House Or Acquired

 

Sign up to our weekly newsletter to access the full report and see more data around which portals have spent the most on M&A to get into adjacent revenue streams, the importance of these revenue streams to portal companies and the trend over time as well as how portal companies brand their adjacent services and products. If you subscribe to the Online Marketplaces' weekly newsletter, a link to the report will already be in your inbox.

Read more

April 7, 2022
Since March 2020 Edmund's job has been to read about, write about, collect data on, analyse and generally know about real estate marketplaces and the companies that run them. Before that he worked at the aggregator Mitula Group (which became Lifull Connect) for five years.

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Shutterstock 1932382865
$13 Billion Adevinta Takeover Deal To Go Ahead After 11th Hour Drama

The acquisition bid made by Aurelia Bidco for the Oslo-listed online marketplace operator Adevinta has finally reached the approval threshold...

Read More
Shutterstock 2245599643
Zillow Adds Individual Room Listings to Its Portal

The U.S. real estate portal Zillow has announced the addition of individual room for rent listings to its portal. The...

Read More
Blank 705 X 430 5
Immowelt's German Parent Company Rebranded to 'AVIV Germany'

The local parent company of the German real estate portal Immowelt has changed its name to 'AVIV Germany'. Immowelt is...

Read More
Untitled Design 15
REA Group Sees Strong Domestic Growth in HY1 Results

The Australian real estate marketplace operator REA Group has released its results for the first half of its 2024 financial...

Read More