NZME and Gumtree Sign MOU to Enter $125.3M New Zealand Automotive Listings Market
Gumtree Australia Markets and NZME have signed an MOU to explore launching a new digital automotive marketplace in New Zealand, aiming to challenge the current market leader and tap into a $125 million annual revenue opportunity.
- MOU signed between Gumtree Australia Markets and NZME to explore NZ automotive classifieds
- New Zealand’s automotive listings market valued at approximately $125.3 million annually
- Current market dominated by a single player, presenting opportunity for competition
- Content sharing and advertising revenue partnership established between the two companies
- Marketplace to leverage NZME’s media reach and Gumtree’s technology platform
A New Contender Emerges in New Zealand’s Automotive Classifieds
Gumtree Australia Markets Limited (ASX: GUM) and NZME Limited (NZX and ASX: NZM) have announced a strategic Memorandum of Understanding (MOU) to explore the creation of a competing digital automotive marketplace in New Zealand. This move targets a market currently dominated by a single player and valued at an estimated $125.3 million in annual revenue.
The partnership aims to leverage the strengths of both companies: NZME’s extensive audience reach and omnichannel media presence combined with Gumtree’s proven technology platform. This collaboration could introduce much-needed competition to a market where automotive dealers have expressed a clear demand for more choice and value.
Content Sharing and Revenue Collaboration
Beyond the marketplace exploration, the two companies have agreed on a content sharing partnership. NZME’s Driven Car Guide will publish selected automotive reviews and articles from Gumtree’s Carsguide, with advertising revenue shared between the parties. Additionally, NZME will resell Gumtree’s digital advertising inventory to New Zealand audiences, expanding the reach and monetisation potential for both firms.
Gumtree Group Managing Director Tommy Logtenberg highlighted the significance of this partnership, noting the opportunity to address the lack of competition in New Zealand’s online automotive market by combining Gumtree’s technological capabilities with NZME’s media assets.
Strategic Alignment and Market Potential
NZME Chief Executive Officer Michael Boggs framed the initiative as a natural extension of NZME’s strategic growth following the success of its OneRoof real estate platform. The automotive classifieds sector represents a substantial vertical with significant revenue potential, and the partnership is positioned to deliver value to shareholders while meeting consumer needs.
The MOU outlines a two-phase approach: initial evaluation followed by a potential launch of the new marketplace. While the deal is exploratory, it signals NZME’s ambition to transform into a leading digital business by leveraging partnerships with established market leaders like Gumtree.
Market Implications and Next Steps
If successful, this venture could disrupt the current market dynamics in New Zealand’s automotive classifieds sector, challenging the incumbent’s dominance and potentially reshaping advertising and consumer engagement in the space. Investors and industry watchers will be keenly observing the progress of this collaboration and its impact on market share and revenue growth.
Bottom Line?
This partnership could redefine New Zealand’s automotive classifieds landscape—watch for the next moves.
Questions in the middle?
- Will the new marketplace secure significant market share from the incumbent?
- How will existing automotive dealers respond to increased competition?
- What timeline and investment will be required to move from exploration to launch?
