Gumtree has made big changes to their highly-trafficked automotive section, by monetising the channel and becoming an automotive platform of note. They recently introduced an ad management and customization dashboard for professional sellers.
“While we haven’t seen this strategy adopted in local markets, it’s fairly common practice in international markets when a site becomes so large that it has to implement measures to prevent duplications of ads,” says MD Johan Nel.
“Craigslist was the first to charge a fee for listings in automotive and property categories. We also wanted to add a layer of control and sophistication for professional sellers, that allow them to act as operators rather than customers. Dealerships can now scale costing up and down per their needs, creatively edit their ads and analyse data to make tactical decisions.”
Sellers can still post two ads in the automotive category for free (so as not to discourage private sellers), whereafter small fees apply. Professional sellers are offered access to a professional ad management system known as the Gumtree Automotive Inventory Tool, that assists them with improved lead management and additions to the existing model, such as graphic overlays and modifications to ads.
Nel says this has reduced the number of listings in the category, but improved the quality thereof drastically. “In terms of ad figures, it seems like a knock, but the ads that have been “removed” were duplications – which, in the world of classifieds, is considered spam. Users are happier because it’s become much easier to navigate through the section and find the car they are looking for. And the amount of dealerships that have signed on and started using Gumtree has really upped the quality of ads on the site.”
Nel says the company has consulted close to a thousand dealerships about the process – most of which have signed contracts with Gumtree and are using the new professional ad management system. “The face of automotive retail has changed for good,” says Nel. “Dealerships can manage their ads fully and scale up and down as required, without being tied to stringent annual contracts. Customers are gaining access to better deals and a smoother experience. It’s a win-win.”
Nel says the company will continue to invest heavily in this category, which drew close to 1.2 million unique visitors in September alone. “For many browsers, Gumtree is the first place they go when they need to buy or sell a new car, and we want to make sure it stays that way. This move will assist us in firmly cementing our position as a car trade platform of note.”
Gumtree recently became South Africa’s largest local website, attracting over 8 million unique visitors every month.