Agents are spending more with Rightmove as new records are broken in visitors and leads, the company has told shareholders.
In an interim management statement covering the period July 1 to October 31, Rightmove says that average revenue per advertiser has increased, with agents spending more on additional advertising products.
The number of advertisers has grown by 2% since the first half of the year. There are now a total 18,372 advertisers, consisting of agents and developers, subscribed to Rightmove. Most (16,093) are agents.
The firm has reported “healthy growth in revenue and earnings and strong cash generation” over the four-month period.
Traffic to the site has soared, with page impressions up around 30% compared with the same period last year.
Rightmove also said its mobile platforms have continued to grow rapidly with over 1.7bn pages viewed in the period, almost double the same period last year.
The firm says the increase in traffic, coupled with the roll-out of local geographic telephone numbers, has resulted in new records for the number of inquiries generated to its agents, up 80% compared to the same period last year.
Rightmove is today paying an interim dividend of 11p per share to shareholders.
As at October 31, Rightmove had £15.8m of cash.
The Rightmove board said it is confident of meeting its expectations for the current year, and confident of making further progress in 2014, subject to there being no significant downturn in the UK housing market.
City analyst Gareth Davies, at Numis, raised his price target for Rightmove shares to over £30 and said he now expects full-year profits for 2013 to be £101m, and £115m in 2014.
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Comments
Marketing sells ! Every other industry knows it.
The only thing that will "sell" a house is viewings.
The M1 of selling viewings is ... online, Rightmove to be accurate. If you claim to be an expert at selling property and have not yet got your head around this... stop claiming to be a professional. You ain't .
and no. I don't.
I would not spend another penny with them! November heres how it goes......2 poxy calenders next day price increase letter (same every year like clockwork). Value for money? NO. Zoopla are far better, more cost effective, and more customer friendly .
Estateagent.me
Yes, but that is used by agents who charge £4k to sell a house.
We are doing all of that (and more) but charging £540.
Someone who pays an 8th (roughly) of the 'normal' price would normally expect to get an 8th of the service. Not the case with Hatched
EstateAgent.me features this as well, all viewings, feedback, offers etc are emailed to the vendor or via our APP, the vendors also get their own login. It can operate as a full management system and also upload your chains.
AceOfSpades
Outstanding online marketing doesn't just have to mean - "advertise on the major websites."
It also means lots of good quality photos on those adverts, a floorplan as standard, a Google map, a set of details, an online tool where vendors can see stats and feedback from viewings, upgrading certain features to include a plot map, a 3d walkthrough, 360x360 virtual tours.
Some agents still don't do floorplans as standard. Baffles me.
We're revolutionising estate agency in terms of the fees paid. and the result, which is the same as through a high street agent in my opinion
(I have 27 viewings on a property in East London tomorrow - customer put it on at the highest valuation that she'd had. And we still have this amount of viewings - you can't say we're not going to absolutely get the same result for the vendor as a high street agent would have done - I know this is only one example, but Rightmove has 'done its thing' for us here)
But also in terms of the systems. How may agents do you know that text the vendor when a viewing is simply requested, or indeed confirming a viewing to both parties via text? We also text the feedback to the vendor. Who else does that?
Vendor's also have a log in area where they can see the feedback and they can see the target dates where we would expect to see a survey done, or the mortgage offer in, once the sale has been agreed. They can see what date the mortgage offer was received and they will soon be able to see the notes that we leave relating to chasing a sale, so there is no hiding on our part whatsoever - there is none of this "Oh I left a message and no one has come back to me" to get us out of jail - complete transparency in what we're doing.
These are the bits all of you don't see. And this is the real revolution.
I admire your honesty to me.
Your clients, on the other hand, would hardly feel this is 'revolutionising estate agency' or 'outstanding online marketing'.
Granted, a lot of agents do the same but from the high street.
I have always thought you have a good little business model in doing what you do. Even more so now if your volumes are true and you just put an ad online, then wait for the phone to ring. Not even a massive outbound phone bill I imagine!
Making yourself some decent money? Sure. Existing to revolutionise agency? Not likely.
Is it not that Rightmove have just made everything more expensive so we have to pay more for the same old same old
AceOfSpades
Yes (and Zoopla)
Adam, question.
Are you saying that's pretty much your service/strategy to deliver for your vendor...get it on rightmove? For a fully inc vat price, of course :p
Kevin
How does this make a mockery of online agents claims?
If anything, this backs up our model of not advertising in the papers, etc, because online (which is what Rightmove are), is the future...
It also backs up my thoughts on investing more in Rightmove myself and that if I get my houses on Rightmove, they will sell. And this in turn is also backed up by the fact that agents are spending MORE on Rightmove as reported.
Agents know that all they have to do to sell houses, is get them on RM. If RM wasn't so important to selling houses, then they would be decreasing spending with RM?? But they're not, they're increasing spending.
Just goes to show what a joke estate agency is when agents claim that it is really hard work to sell a house and it is more than just RM or Z...
Did rightmove win that big lottery win. Surely its not down to seeing agents coming with a big 'MUG' on their heads.
This is fine for large companies with big advertising budgets but good small independent agents will be financially squeezed out.
Makes a mockery of all the online agents claims doesn't it.
No way, no Rightmove bashing yet!
On a more serious note, I interpret this statement as saying that they are going to squeeze more money out of their customers next year. I would advise caution, as IF Agents Mutual takes off and the customer agents really start to promote it to customers AND it gets a critical mass of instructions, Rightmove may have a formidable competitor, one that the agents see as more as a partner than just a replacement to the large newspaper costs we used to have.