Advertisement Portals: A Growing Threat to the Business of Real Estate Agencies
The real estate sector has undergone a radical transformation since the rise of the Internet. Online ad portals, such as Le Bon Coin, SeLoger, or Logic-Immo, now dominate the market by attracting millions of visitors each month. This development has important consequences for real estate agencies and their economic model. Indeed, the value of the goodwill of advertising portals continues to increase, while that of real estate agencies, including that of their own websites, is declining. Why does this dynamic exist? And what are the implications for professionals in the real estate sector?
Large real estate ad portals: sharks that devour real estate agencies over time
The major real estate ad portals, such as Le Bon Coin, SeLoger, and ParuVendu, have gradually transformed the real estate landscape. Initially, these platforms brought great visibility to real estate agencies and facilitated access to buyers. However, their business model based on paid subscriptions and the huge volume of traffic they generate has allowed them to become dominant players in the market.
Over time, these portals have become real “sharks”, capturing an increasingly large share of the market to the detriment of traditional agencies. By attracting massive numbers of visitors, portals have reduced the dependence of buyers and sellers on real estate agencies. Agencies, which once enjoyed a key role in connection and negotiation, today find themselves largely subordinate to portals, which control the visibility of ads and, by extension, prospects.
These portals have not only transformed the way transactions are carried out, but have also driven down the value of real estate agencies' assets, as the value of their websites and their customer base is now largely influenced by the presence on these sites. platforms. Real estate agencies, in their quest to remain competitive, must pay high fees to appear on these sites and ensure visibility. As a result, they are in an increasingly fragile position facing these real estate “sharks”, which feed on their visibility and their income.
The Rise of Announcement Portals: A Growing Power
Real estate portals have seen their business model develop and strengthen with the increase in online transactions. These platforms provide instant and massive visibility for real estate, attracting a large number of potential sellers, buyers and tenants. One of the main reasons for this growth is their ability to centralize thousands of listings in one place, providing unparalleled ease of search for consumers.
The portal model is based on remuneration per subscription or per ad, which allows them to generate considerable income. As these sites gain popularity, their value increases, because real estate players know that being present on these platforms is now essential to reach a large audience.
The Dependence of Real Estate Agencies
Real estate agencies, to attract as many clients as possible and quickly sell the properties they represent, have found themselves obliged to register on these portals. Indeed, a large proportion of real estate buyers and sellers now turn to the Internet to search for properties. As a result, even the most established real estate agencies are finding it increasingly difficult to do without these platforms.
Portals offer additional services, such as ad placement options and analytics tools, that allow agencies to track their performance. However, these services are not free and increase costs for real estate agencies. In other words, if they want to stand out and capture the attention of prospects, they must invest more and more in these platforms. This economic model creates an increasing dependence of agencies on portals.
Why is the Value of Real Estate Agencies’ Goodwill Decreasing?
- Reduction of independent visibility:
The main driver of the decline in the value of real estate agencies' assets lies in the loss of independence. Historically, real estate agencies have thrived by having their own networks, their own contacts and their own websites. Today, an agency relies heavily on ad portals to attract clients, which reduces the value of its own website, which is no longer the nerve center of its activity. - Dependence on a saturated market:
As portals are used by a large majority of agencies, competition on these sites becomes increasingly fierce. This leads to an erosion of differentiation between real estate agencies and a weakening of their negotiating power with owners. Additionally, the costs of posting ads are increasing due to high demand for premium options or ad space. - Losses linked to direct monetization:
By focusing on portals, real estate agencies lose some of the control they may have had over their own transactions and their relationships with clients. In fact, they can no longer directly retain their prospects without paying to be visible on these platforms. This also limits the possibility of developing a strong brand strategy around their own identity and reduces the attractiveness of their business in the long term. - A standardized offer and general competition:
The ad portals offer a standardized model for all agencies. Ads are displayed in a similar way, making it difficult for an agency to stand out and strengthen its image. The client, for his part, sees the entire real estate market as a homogeneous whole, without differentiation between the players. This directly impacts the perception of the value of an agency, which becomes a simple “gateway” to a property, with no real added value in terms of advice or support. - Reduced perceived value of the service:
Portals favor a transactional approach, where the customer-agent relationship is minimized. The consumer finds themselves in an autonomous search position, often without prior interaction with a real estate agent. This disintermediation tends to devalue the role of real estate agencies as advisors and experts, thus reducing the perceived value of their services. As a result, the business assets of real estate agencies are losing their appeal to investors.
How to Take Back Control?
Faced with this situation, real estate agencies have several avenues to regain control of their economic model and strengthen the value of their business.
- Strengthen independent online presence:
One solution is to invest in a robust and attractive website. By working on SEO (natural referencing), agencies can increase their online visibility without depending solely on portals. A well-designed site, with a smooth user experience, can directly attract clients and allow the agency to stand out. - Leverage social networks:
Social networks like Facebook, Instagram, LinkedIn and YouTube offer agencies a platform where they can create engaging content, share customer testimonials, and offer free or low-cost visibility. This makes it possible to diversify acquisition channels and not rely solely on portals. - Offer value-added services:
By positioning themselves more like real estate advisors than simple intermediaries, agencies can differentiate themselves. Offering coaching services, real estate investment advice, or even virtual tours are all solutions to reinforce the perceived value of their services and attract clients ready to pay for tailor-made support. - Develop a customer loyalty strategy:
Agencies can invest in loyalty programs that reward customers for their loyalty, offering them benefits such as discounts on agency fees, personalized services or invitations to exclusive events . - Diversify sources of income:
Some agencies choose to diversify their income by offering additional services, such as rental management or the sale of real estate loans. This allows you to not be entirely dependent on income from ad portals.
The rise of ad portals has profoundly changed the real estate landscape. If these platforms offer immense visibility and have become essential tools, they have also changed the economic dynamics of real estate agencies. The growing dependence of agencies on these portals has led to a decline in the value of their businesses and their own websites. However, by investing in independent strategies, value-added services and diversifying their acquisition channels, real estate agencies can regain control and restore the value of their business in the long term.
