Advertising has been a major source of revenue for popular property portals which is about to change. The ad-listing that is currently done by builders on property portals accounts for about 60 per cent of its total revenue. Of late, the general sluggishness, RERA, demonetization, and other associated factors have resulted in impacting this stream of revenue largely.
The volatility experienced by the real estate market is directly impacting the real estate portals by driving them to focus on other means of generating revenue. In order to maintain a steady growth in future, many of the popular property businesses and portals are either expanding their non-advertising components or streamlining it strategically.
Jagmohan Garg a Delhi realty hotshot, quoted, “In this high-speed age of Internet, portals have started attracting traffic massively. The possibility of including attractive and alluring visuals changed the whole idea of property ads making it seem like a fixed source of revenue on the long run. Soon, every other property agent turned up at a property portal to advertise their holding. The recent switch in technique has led to a lot of chaos. Some envisioned it and were ready for it while some were not.”
Jagmohan Garg, the Dmall chain proprietor added, “Demonetization is a major factor as to why there has been a decline in the number of advertisements shared by builders. We are still in the process of adjusting. Therefore, the hit on property business is resulting in a decline of advertisements, causing portals to plan on focusing on non-advertising elements. While all this is happening, many portal owners are busy building many other new streams of generating revenue. Realty businesses are dug deeper to introduce newer segments for better revenue production.”
As the realty sector portals plan on shifting their focus on non-advertising components, it also takes into account the entire industry cycles while deciding on the strategic moves. Demonetization sure has been a great cause behind the drop experienced in property business, which has led to this issue. Expectantly, the industry might soon recover from the consequences to level up with the on-going changes.