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This post has been republished with permission from Mike DelPrete.
Opendoor’s advertising spend has skyrocketed this year, higher during the first six months of 2022 than all of last year.
Why it matters: Even in a slowing market, Opendoor’s foot is firmly on the accelerator, growing the business and educating consumers at a scale never seen before.
- In addition to key partnerships, Opendoor is taking its message of a quick, instant sale directly to consumers in a big way.
Opendoor’s increased advertising spend is driving an increase in home purchases; it’s already purchased nearly twice as many homes in the first six months of 2022 compared to the same time last year.
Opendoor is becoming a real estate advertising juggernaut as it strives to become a leading consumer brand.
- Compared to the same time last year, Zillow spent $12 million less on advertising (largely due to its exit from iBuying), while Opendoor’s ad spend surged $71 million.
- At its current rate, Opendoor could eclipse Zillow’s ad spend in 2022.
The bottom line: At a time when other real estate companies are slowing down and cutting expenses, Opendoor is accelerating.
- It’s notable that Opendoor hasn’t enacted layoffs, isn’t unilaterally cancelling purchase contracts, and has increased its advertising spend.
- With a strong balance sheet, Opendoor is taking a long-term view of the business and enthusiastically investing now for future growth.
Mike DelPrete is a strategic adviser and global expert in real estate tech, including Zavvie, an iBuyer offer aggregator. Connect with him on LinkedIn.