Get the latest direct to your inbox twice a week. Sign up today. 
NZME explores NZ automotive marketplace with Australian specialist
NZME has announced the signing of a memorandum of understanding with Gumtree Group. The partnership aims to explore the development of a competing digital marketplace in New Zealand’s lucrative automotive market.
Gumtree Group is a division of Gumtree Australia Markets Limited, one of Australia’s leading classifieds businesses.
Michael Boggs, NZME chief executive officer says: “With New Zealand’s automotive listings market thought to be worth around $125.3 million in revenue annually and 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.
“Automotive dealers have been clear with us about the need for a competitive marketplace that offers choice and value. Our success in doing that with our One Roof real estate platform demonstrates our ability to compete strongly in well-established markets,” Boggs adds.
“As the owner of well known automotive brands Gumtree Cars, Carsguide and Autotrader, 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 use 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,” says Boggs.
NZME’s digital evolution continues
The two companies have also entered into a content sharing partnership whereby NZME’s Driven Car Guide will publish selected Carsguide automotive reviews and articles, with advertising revenue shared between the parties.
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 says the partnership with NZME provides an exciting opportunity as there is a significant need for competition in the New Zealand’s online automotive market, powered by Gumtree’s technology and capability.
The MOU outlines a two-phased approach to firstly evaluate and then potentially launch the new venture.
“As one of the largest marketplaces for classified advertising, the automotive market represents a significant opportunity,” says Boggs.
“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.
“This initiative represents another step in NZME’s transformation into a leading digital business, using the skills and talent of established market leaders and technology partners,” Boggs adds.
