Advertisers bump up spending on Rightmove despite ‘volatile’ housing market
Advertisers are upping their spend in the battle for eyeballs on housing marketplace Rightmove.
Online property portal Rightmove has raised its annual forecast for average revenue per advertiser (ARPA) as it continues to boast strong results, despite a deterioration in the UK property market.
The firm, which advertises properties to buy and sell, said it now expects the figure for the full year to be £112-116, exceeding previous guidance of £103-£105.
“The majority of the growth has been driven by new homes developers, who have extended their usage of our Native Search Adverts and Advanced Development Listing products to sell their developments,” Rightmove said in a statement this morning.
The company said it also expects revenue growth for the year to be between eight and 10 per cent. Estate agent subscriptions and new homes development listings were also reported to be stable.
It comes amid a period of volatility in the UK housing market with many people putting off buying homes due to sky high mortgage rates and weak economic conditions.
Johan Svanstrom, chief of Rightmove, said:“The strength of our performance against an uncertain market backdrop demonstrates the strength of the UK consumer affinity to our platform.”
“It also illustrates the resilience of our business model in all phases of the property market cycle. We continue to look to the future with confidence and remain focused on the delivery of our strategic plans, both in our core business and in strategic growth areas.”
Markets have been keeping a close eye on the firm after its rival Onthemarket was boosted by a £99m takeover deal from Costar back in October.
Rightmove also confirmed plans that it would enter into the mortgage market, launching a product which will allow customers to gain mortgage advice on its website.
At its capital markets event on Monday afternoon, Rightmove managing director, Dave Cray said: “We see this as a big opportunity to help consumers speak to a lender and a big opportunity to help our agency customers grow their financial revenues.”
Rightmove’s share price was up over six per cent this morning as markets responded to the news.