Key insights
- Google is testing for-sale home listings in mobile search results, challenging Zillow and CoStar. The test, featuring a listing carousel with monetization options, mirrors a previous trial that faced industry pushback. Google's reach poses a threat to Zillow and CoStar's Homes.com, raising questions about Zillow's future if Google directly accesses and displays listings with monetization capabilities. This could negatively impact Zillow and CoStar's market share.
Investing.com -- Google is testing for-sale home listings in mobile search results across multiple U.S. markets, according to BTIG. The tests are appearing in Austin, Cleveland, Miami and San Francisco.
The search giant is displaying a listing carousel at the top of mobile results, above traditional paid links. Google (NASDAQ:GOOGL) is sourcing listings from HouseCanary’s ComeHome platform, which operates as a registered broker, BTIG said.
The listings include three monetization options: book-a-tour, find-an-agent and ask-a-question buttons. These buttons direct users to buyer-side agents who pay for the placement.
The current tests mirror similar trials Google conducted in December. Those earlier tests were discontinued within weeks after industry pushback, according to BTIG.
The real estate industry objected to the December tests on grounds that they violated rules preventing brokers from advertising other brokers’ listings. The current test uses the same listing data source and ad formats as the previous trial.
BTIG noted Google’s reach and ability to place its ad products prominently in search results poses a challenge to Zillow (NASDAQ:ZG) and CoStar’s (NASDAQ:CSGP) Homes.com. The firm said the test raises questions about where Zillow might fit if Google can directly access and display listings with monetization capabilities.
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