global internet trends simon baker managing director the rea group 9 july 2006
TRANSCRIPT
Global Internet Trends
Simon Baker
Managing Director
The REA Group
9 July 2006
Who is The REA Group?
Key stats for the REA Group
• 6 sites
• Operating in 3 countries
• Advertising from 35 different countries
• 750,000+ listings across the sites
• Residential and commercial advertising
• 5 million unique visitors across sites
• 11,000+ residential and commercial agents
• 310 full time employees
• $60m in revenues
• Clear aspiration to be the global leader in online real estate advertising
Agenda
Online trends
Impact of these trends on our media habits
New real estate advertising sites are emerging
Changing nature of real estate advertising
Role of the REA Group
Questions
4 Major Global Internet Trends
1. Continued growth in usage of the internet – more people and more time per person
2. Rapid rise of self publishing and new content types
3. Social networking is taking off
4. Move to local sites rather than global sites
Broadband penetration is driving internet usage
0
10
20
30
40
50
60
70
80
90
100
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Source: Merrill Lynch – Actuals FY02-04, Estimates FY05-14
Total Usage
Broadband Penetration
Percent
New internet enabled devices are emerging
Self publishing and new content is rapidly emerging
New popular social networking websites
Rapid emergence of local search sites in Australia
Agenda
Online trends
Impact of these trends on our media habits
New real estate advertising sites are emerging
Changing nature of real estate advertising
Role of the REA Group
Questions
Impact of trends on traditional media and approach to advertising
1. Increasing consumption of online media at the expense of traditional media
2. Movement in spend from offline media to online
3. Increasing innovation in advertising – beyond static print ads to high levels of interactivity
4. Greater transparency of advertising efficiency
Circulation of newspapers is declining
200000
250000
300000
350000
400000
450000
Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05
Source: Australian Bureau of Circulations
West Australian
SMH
Courier Mail
Age
Advertiser
Less 16 – 39 year olds are watching TV
0
100000
200000
300000
400000
500000
2001 2002 2003 2004 2005
Average Viewer Numbers (16-39 Age Group)17.4% drop in 5 years
Source: Merrill Lynch
Shift on spend from traditional media to new media
% Total Media Spend by Key Media
0
5
10
15
20
25
30
35
40
45
50
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
%
Newspapers
Free to Air TV
Internet
Source: Merrill Lynch
In the US, online will overtake newspapers in 2009
Source: Borrell and Associates Inc, July 2005
US$m
Google and Yahoo are driving greater transparency in advertising
Agenda
Online trends
Impact of these trends on our media habits
New real estate advertising sites are emerging
Changing nature of real estate advertising
Role of the REA Group
Questions
New real estate sites are emerging in the US
Agenda
Online trends
Impact of these trends on our media habits
New real estate advertising sites are emerging
Changing nature of real estate advertising
Role of the REA Group
Questions
How are developers and agents leveraging these trends?
1. Separating brand advertising from property advertising
2. Using new media to promote and differentiate themselves
3. Using self publishing for great local market interaction
4. Focusing on lead generation and lead tracking
Weichert Lead Network
• 15,000 sales associates, 330 sales offices
• All leads (print / online / phone etc) to a central lead management team
• Ads in each media have a different telephone number
• All leads are “scrubbed” by a central team
• Qualified leads (ie ready to transact) are passed onto sales associates
• Early stage leads (ie not ready to transact) are centrally managed until qualified
• Cost per lead per media channel centrally tracked and media spend redirected into those lead sources that deliver greatest volume at lowest price