CoStar’s Aggressive Campaign to Dominate The Real Estate Market
CoStar, the parent company of Homes.com, has loudly proclaimed its intent to rule the real estate market. In 2020, the company purchased Homes.com, demonstrating an aggressive determination to eclipse Zillow. By October 2023, Homes.com proudly announced that it attracted over 100 million unique monthly visitors, outperforming competitors such as Redfin and Realtor.com.
The Billion-Dollar Advertising Push
As part of its grand strategy, CoStar executed an advertising juggernaut during the 2024 Superbowl. The company’s CEO, Andy Florance, revealed that they planned to run four different ad campaigns. One was for Apartments.com, which is CoStar’s rental portal, and the remaining three were dedicated to showcasing Homes.com. High-profile celebrities such as Dan Levy, Jeff Goldblum, and Heidi Gardner were featured in these ads.
The company has also pledged to continue running its ad campaigns during significant cultural events like the NBA Playoffs and the Oscars. The projected cost of these ad campaigns is close to a staggering billion dollars. Florance expressed the company’s confidence in its platform, saying, “We’re confident we have the best site now by far. We’re confident we have an agent-friendly model.”
The Reception of Their Superbowl Ads
Despite the considerable attempt to impress, CoStar and Homes.com’s Superbowl ads were met with a decidedly lukewarm reception. Northwestern University’s Kellogg School of Management, known for its annual grading of Super Bowl commercials, was unimpressed by the ads.
Homes.com’s ads, despite having three spots during the event, scored a disappointing ‘D’ grade. Apartments.com fared marginally better with a ‘C’ rating. According to Kellogg Professor Derek Rucker, their ads were ‘all over the place.’
CoStar’s Consequences and Future Strategy
Despite the tepid reception, it’s clear that CoStar is intent on becoming the biggest real estate platform in the United States with Homes.com. CoStar’s giant ad push indicates the company’s belief in its product and its willingness to stay in the residential real estate business for the long haul. Regardless of the outcome, they’ve made their determination abundantly clear and planted their flag in the competitive field of real estate marketing.
So, was CoStar’s multi-million-dollar Superbowl ad campaign a hit or a miss? Time will tell. But one thing’s for certain: CoStar is energetically chasing real estate portal supremacy.
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