Gumtree group managing director Tommy Logtenberg said the partnership was an exciting opportunity. Photo: 123RF
Media company NZME is looking to develop a competing online marketplace for New Zealand's automotive industry in association with Australian online marketplace Gumtree Group.
NZME chief executive Michael Boggs said the automotive listings market brought in an estimated $125.3 million in annual revenue, but was currently dominated by a single player.
"We see this as an opportunity for NZME to be a strong competitor in this market, securing share to further grow our business," he said.
"Automotive dealers have been clear with us about the need for a competitive marketplace that offers choice and value and our success in doing that with our OneRoof real estate platform demonstrates our ability to compete strongly in well-established markets."
Boggs said Gumtree Cars, Carsguide and Autotrader were strong Gumtree brands.
"Gumtree approached NZME last year, following an introduction by NZME shareholder Roger Colman, with a compelling proposal to build an automotive marketplace.
"The marketplace would leverage NZME's substantial audience and omnichannel media reach and Gumtree's proven technology platform, seeing us deliver a strong alternative to benefit both automotive dealers and consumers."
He said the two companies had signed a memorandum of understanding (MOU) and also entered into a content sharing partnership whereby NZME's Driven Car Guide would publish selected Carsguide automotive reviews and articles, with advertising revenue shared between the parties.
Michael Boggs. Photo: Supplied/NZME
"The partnership also allows for reselling Gumtree's digital advertising inventory to New Zealand audiences through NZME's multi platform offering."
Gumtree group managing director Tommy Logtenberg said the partnership was an exciting opportunity, with a significant need for competition in the New Zealand's online automotive market
The MOU outlined a two-phased approach to evaluate and then potentially launch the new venture.
Boggs said a new automotive marketplace in New Zealand aligned with NZME's strategic direction following the continued success and growth of its property platform, OneRoof.
"As one of the largest marketplaces for classified advertising, the automotive market represents a significant opportunity. We're excited to further build on our proven success with OneRoof by exploring verticals that create value for shareholders and serve the needs of consumers."
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