Battle of the (Ad) Network Stars
When Trulia launched its new ad network (see Trulia Launches First Online Real Estate Ad Network) it was an attempt to leverage their network of advertisers while providing a way for third party publishers to showcase their advertising inventory to larger brand advertisers.
It’s a proven business model that works well across the Net, as evidenced by the success of networks like Glam Media and Federated Media and niche networks like the Deck.
And to give credit where credit is due, it’s also a concept in the real estate space that blogger (and occasional FOREM contributor) Erik Hersman first brought up in his post on Realty Thoughts over a year ago (see The Need for a Real Estate Specific Ad Network).
(BTW - Erik walks the walk too and just built a fantastic ad network for the automotive vertical for Piston Media Group.)
So while Trulia’s network may have been the first, surely it wouldn’t be the last…
Yup, sho nuff.
Competitor Cyberhomes just announced they’ve partnered with ad-network provider Adify to launch a competing ad platform that they are calling their Real Estate Vertical Advertising Network.
How many ad networks is too many? At the recent EconAds seminar the question was asked “Is it a good time to start an Ad Network?” The answer:
Now’s as good a time as any to start an ad network business, several panelists said. It’s like starting an Italian restaurant in New York. The good ones will thrive.
So whose business will last? Trulia or Cyberhomes? I suppose it depends on the depth of the advertising relationships both sites maintain and to what degree they are successful in getting publishers to sign up.
There’s no question there is a glut of unsold advertising inventory available these days with so many ad-supported web sites having been launched over the last couple of years. We’re also seeing dollars being shifted into web based advertising like never before So the one that’s able to marry those two needs might very well have a great business on their hands.
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geordieromer | Jun 3, 2008 | Reply
I think it goes back to content. Trulia does a better job so far on content, but Zillow isn't far off either. In my market, none of these have very good content (irrelevant statistics, small portion of the listings, poor maps, no tax data). If there isn't anything sticky for the consumer, why would an advertiser pay to be here?
Trace | Jun 3, 2008 | Reply
Great stuff, great coverage. More targeted platforms are just what the doctor ordered.
Matt Goyer | Jun 4, 2008 | Reply
I'm considering both vaporware until I can use either of them as my advertising solution on my Seattle condo blog, Urbnlivn. I'd certainly love to ditch low paying Google Ads for something higher paying (though most of the time the Google ads are surprisingly on target.)
Erik | Jun 4, 2008 | Reply
Hey Joel. I'd argue that the success will be determined not by who gets the most publishers to sign up (I think that's the easy part), but by who has the best sales team and can get the most advertisers on board.
retrove | Jun 4, 2008 | Reply
The other item that I think is interesting about this real estate advertising vertical is that in traditional (print) real estate advertising the money was spent by agents / brokerages to brand themselves and listings. Now most RE sites allow the agents / brokers to advertise for free who will purchase the ad inventory?
Z's Ez ads don't seem to have really taken off… T already allows the brokers to post listings and now brand listings.
Sure all the ancillary services to real estate transactions (moving, painting, cable, etc) may advertise but that seems like a small percentage of traditional ad dollars that are migrating online.
Regarding who will last? At this point I have been underwhelmed with Cyberhomes but they have the most potentional due to the access to FNIS resources and data while Trulia already has many good relantionships in place and has a strong organic SE foothold but seems more vunerable due to dependance on agent community for listings.