REA having a bear market rally?, page-55

For me it is simple. Forget the macro factors. Think about the value REA delivers to customers v the total amount spent by a vendor on selling their property. Right now most vendors spend their money on the "traditional" channels - newspaper and online advertising, home presentation and agents fees. Marketing the property on REA is a small part of the total vendor cost yet where does everyone go when they are looking to buy a new home first - rea.com.au. This imbalance is yet to be fully priced into REA's revenue (their share of the selling costs v the value they provide) - and they can keep adding value to the offer to the vendor with analytics, finance etc.