Domain and REA lean on targeted ads as listings decline

PHOTO: Domain and realestate.com.au

Domain and realestate.com.au are increasingly using targeted advertising on social media to try to counteract a fall in property buyers.

Analysts at Macquarie Bank have recalculated earnings at real estate classified businesses Domain, majority owned by Nine, and News Corp’s REA, which runs realestate.com.au.

The key reason is that the analysts see property listings slipping further than expected and dragging down earnings in the second half of the financial year.

The analysts now see a 10% fall in property listings for the six months to June, up from the previous assumption of a 6% drop.

“From our recent conversations with agents, we also see increased used of both social media/targeted advertising, as well as investment in direct communication via e-Brochures using databases provided by REA and in some cases DHG (Domain),” the analysts say.