This story was republished with permission from the author.

According to the latest company results, it appears that Zillow’s longstanding traffic lead over is diminishing. In an industry where metrics like this move slowly if at all, it’s fascinating.

But it’s also insignificant in terms of competitive advantage and revenue uplift — and might simply be an artifact of pandemic browsing patterns — but it does reveal a deeper truth around portal monetization.

Zillow’s traffic advantage hasn’t changed in years — consistently hovering at three times the average monthly visitors compared to However, beginning in Q1 2020, that lead began to erode.

The timing suggests that this is likely a result of the pandemic. Perhaps Zillow has less upside, while is benefiting from more consumers willing to visit multiple sites to see all available inventory in a high-demand, low-supply market.

A corresponding revenue uplift

Across the board, the increase in portal traffic has resulted in an increase in revenues. Like Zillow, experienced an unprecedented pandemic bump in lead gen revenues — for the first time in years.

But in this case, a rising tide lifts all boats. Both companies experienced a proportionally identical increase in lead gen revenue; Zillow’s revenue lead remains unchanged at 2.5 times higher than

The data above is an apples-to-apples comparison of each company’s lead gen business: Zillow’s premier agent versus’s “real estate” revenues.

Strategic implications

As I outlined in a recent analysis on challenger portals, there is a non-linear correlation between market share (traffic) and value (in this case, revenue). Time and again, it’s “winner take most” for the No. 1 portal.

What I find fascinating is that despite all of the activity of the major portals, the monetization ratio has remained constant. Like the speed of light, there’s an immutable law of portal monetization at play with an upper limit, unchanged despite:

And it’s not just the U.S. In Australia, the top two portals have a similarly static monetization ratio despite years of intense investment and competition.

At its extreme, this suggests a sort of monetization nihilism — that nothing matters. Product improvements, senior management changes, business model shifts, global pandemics, and nine-figure acquisitions are, in the end, meaningless in terms of portals outperforming each other. There’s a premium for being No. 1, and it just doesn’t change.

Mike DelPrete is a strategic adviser and global expert in real estate tech, including Zavvie, an iBuyer offer aggregator. Connect with him on LinkedIn. | Zillow
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