x
By using this website, you agree to our use of cookies to enhance your experience.

The head of a group providing information for stock market investors says Rightmove and Zoopla have the potential to expand income from agents abandoning advertising in local and national newspapers.

Roger Lawson, chairman of ShareSoc, says that the cost of advertising properties on the two major portals is a relatively small part of the overheads of running an agency - a fact which may be disputed by agents unhappy with Rightmove and Zoopla fees.

There is still room for expansion of revenue by taking advertising spend from the more traditional print media. Only about 50 per cent of agents' promotional spending is on internet services and is still growing claims Lawson.

The other opportunity for revenue growth is if property transactions rise. They are still nowhere near the peaks achieved in 2006/2007 according to the Land Registry says Lawson, who has a holding in Rightmove.

Writing on Stockopaedia, an online stock market analysis service, Watson says the arrival of the Agents' Mutual challenger portal in January may well evoke competitive responses from Rightmove and Zoopla which could reduce their profit margins in the short term.

However, he says that whether they [Agents' Mutual] will be able to drive sufficient internet users to their new web site to look for property when Rightmove and Zoopla are already well established in people's minds seems questionable.

Comments

  • icon

    Rightmove and Zoopla property portals are no longer a bonus, they're a necessity. Sellers and landlords need their properties to be advertised on these sites to match the competition and it's us who ends up paying the fees, not agents. If anyone should be complaining about the rise in prices, it's us.

    • 07 July 2014 10:50 AM
MovePal MovePal MovePal