New Online Property Investment Firm to Challenge Zoopla and Rightmove Duopoly

on Jan 23, 2015
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On Monday a new online property website will be launched called onthemarket.com., a new real estate company that are looking to compete directly with the already well established online property advertising companies Zoopla and Rightmove.

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The new company, which will be run by Agents Mutual, has been formed against a backdrop of increasingly high costs facing estate agents to advertise their properties online. Rightmove and Zoopla charge £671 and £323 per month, respectively. Considering that approximately 16,000 estate agents paid the fees last year, it is easy to see why onthemarket.com is looking to enter the online property advertising business. Interestingly, one of onthemarket.com stipulations is that in using their website, customers agree not to advertise the same property on either Zoopla or Rightmove. This paves the way for On the Market to aggressively challenge the two major players in online property advertising.

Perhaps the most important factor relating to the success or failure of any online property agency is to attract new visitors to its website. Building a large audience of people looking to purchase property is imperative if onthemarket.com is to sustain itself and compete in an already very competitive area of retail property investment.
For example, in 2014 Rightmove spent £10 million on branding, a substantial amount of resources from the point of view of a new entrant, such as onthemarket.com, though it is reported that they have allocated several million pounds towards a comprehensive advertising campaign which will include TV exposure.

“Except for the rule forcing agents to break from either Zoopla or Rightmove, On The Market is hardly different than any other competitor,” said Alex Chesterman, chief executive at Zoopla. With a promise by On the Market guaranteeing that there will be no spam and no third party advertising on their website, and a further promise that
“ Every property will be on offer from locally based estate or letting agents… you’ll be dealing with local experts who you can meet face-to-face.”, onthemarket.com will be hoping to succeed in attracting a significant number of potential customers to their website, at least in the short term.

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