Why Gumtree has built a programmatic advertising approach

Head of media shares how investment into a DMP, programmatic advertising capabilities and first-party data has created a marketing engine for the online marketplace

Gumtree's Laura Hill
Gumtree's Laura Hill

Want to reach someone who wants to buy a car, rather than just kick the tyres? Or pick up some home and garden equipment, rather than just seek inspiration? Maybe you should be looking up a tree.

Although it has been overshadowed by larger competitors such as Amazon and eBay, online classifieds and community website, Gumtree, has been laying claim to the title of being Australia’s number one local marketplace for some years now (and it is actually owned by eBay).

Locally, Gumtree boasts a unique audience of 7 million. The site has made a name for itself in reaching intenders rather than browsers, with 45 per cent of its automotive traffic having either purchased a car in the last year or intending to purchase in the next one. More than 1 million people visit its home and garden section each month, and the site is also big with small businesses, with more than 36,000 on the site.

According to head of Gumtree Media, Laura Hill, the fact that users on the site are ready to buy is what gives Gumtree a solid position.

“When you think about the advertising base that we can tap into because of those categories, it really opens up the conversation to most brands that are looking to connect with people,” Hill tells CMO. “A lot of people using Gumtree are tradies or small business owners, and that is a huge audience for the finance sector. Identifying small business users from the general population is a very hard thing to do online, but with our jobs category and our services category, and the fact that they list their ABN, that allows us to identify those people as small business owners.”

What has also proven appealing to advertisers is Gumtree’s investments in data and automation. The site has taken a programmatic-first approach, and last year implemented a DMP to enable first-party data across programmatic and its remaining direct IO business. It also runs an annual survey of 10,000 respondents which provides another rich source of data.

“We really saw the opportunity to make that first-mover approach to programmatic first,” Hill says. “We knew other publishers would do it in the future, but we wanted to get in there first and really own and evolve that offering with the agencies and the clients. So when the rest of the market went that way we weren’t just one of many, we were the leaders and out there in front.”

Hill says Gumtree has grown its programmatic team and the sophistication of its offering, adding header bidding in 2017.

“We launched that to allow for a fairer environment and allow the buyers to compete in real time against each other, as opposed to the older waterfall model,” Hill says. “We have also launched ads.txt, which allows buyers to know we are the authorised seller of our Gumtree inventory and provide that transparency to buyers. We are also in the process of investigating that on app.

“And then from a solutions perspective, we are constantly evolving what we offer in the audience piece. We launched the DMP and the site survey for the second time, which allows us to map respondents to that survey to our DMP, allowing agencies to target respondents.”

Read more: Creating the business case for a Data Management Platform

More recent investments in its programmatic capability include running rich media programmatically, including skins, and the company is also testing video solutions.

But while Hill believes the market will continue heading down the path of automation and efficiency, she is not convinced that will lead to the elimination of the insertion order any time soon.

“There will be things that can’t be transacted, there will be custom-related executions or content,” she says. “But from an efficiency, scale and productivity perspective, the programmatic world will continue to grow, as those dollars that don’t really need to be executed on an IO won’t need to be in the future.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

How service heterogeneity is impacting engagement

Marketers have long known the importance of standardising products to assure quality and consistency. For services, however, standardisation is much more complex.

Dr Chris Baumann

Associate professor, Macquarie University

Kindness matters in business: why the nice guys finish first

A recent 1000-page Royal Commission report on misconduct in Australia’s financial sector revealed hair-raising stories of excessive commissions, rampant mis-selling and charges levied on the dead. So how do you stop a bank from misleading its customers?

Nick Liddell

Director of Consulting, The Clearing

Myer vs. David Jones: Do cyborgs win?

As two of Australia’s stalwart brands in Myer and David Jones continue their respective journeys through troubled waters, it heralds yet another sign of the shifting business environment and shift towards an experience economy.

Tom Uhlhorn

Founder and strategy director, Tiny CX

nice article

meripadhai

5 things marketers need to do to get better in buy in when presenting

Read more

International business is closely related to marketing or marketing activities carried out by the company. According to Gitman and McDani...

Eko Prasetyo Utomo X

Salesforce: The age of the marketing campaign is over

Read more

Back in 1968 Holden began an appeal to customers who have an interest in competition. It did this with the introduction of the HK GTS 32...

Ben Tate

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Your blog post is really good and informative. Thanks for taking time to provide us this useful information with us.Auto wrapping uaeADF ...

Yes Machinery

Image intelligence:10 must-see infographics for marketers

Read more

A debt of gratitude is in order for sharing this marvelous information.I have taken in numerous things from your post

digitech Classes

Lumen CMO strives to make the brand synonymous with anti-ageism

Read more

Latest Podcast

More podcasts

Sign in