Ann: Appointment of key executive, page-4

I think people should be cautious setting expectations against REA.

The majority of REA's revenue would come from Real Estate agents selling property. This is not a hard conclusion to reach, people are willing to spend money to sell their house, whereas to rent it they just want to get it filled so there is no impact on the properties yield. Any significant advertising costs eat into that yield.

That's not to say they won't pay for it, but you need to be realistic about the revenue that can be generated from it when you are number 3 in the less lucrative market.


For what its worth, if I had the RNT marketing budget to control, I would be doing some fairly targeted advertising at the University sector / students as they are most likely to be your customers for the next 10-15 yrs.