The tail that wagged the market share…

March 10, 2009

Last week one of my clients, upon reading my blog, suggested that maybe I should go ahead and unveil one or two of those ‘smart’ clients to which I alluded.  Disclose what opportunities are being seized.

A quick glimpse into the online rental industry—as of January, the top 49 online rental sites show a “long tail,”— demonstrating the idea that “in a market with high freedom of choice, (i.e. music online), the blockbusters (i.e. Brittany Spears) can be outsold by the many smaller niche products.”  Personally, I imagine Brittany more as a ballbuster, than a blockbuster, but I digress.

The online rental data reveals that 21% of the market share is held by the top site, and that the top three rental sites collectively hold about 48% market share. As the proliferation of smaller sites increases, market share will be whittled away from the leaders.

Enter Hometownrent.com.

Hometownrent.com is an early-stage online listing service for property managers and owners.  Each geography has its own locally-identified url—chapelhillrent.com; burlingtonrent.com; blahblahrent.com; —you get the picture. The company competes with well-established, national players.

Hometownrent.com builds interest in its locations by attracting listings. In many of its markets they own the top search engine rankings, and that boosts the rental search traffic.

Some would say this is a mature market and that it’s useless to compete against behemoths that can outspend them. But Hometownrent.com understands that the present environment favors rental markets and that they are actually competing in a democratic open field that is favorable to stealing market share.

With that in mind, the company has begun a number of well-integrated, cost-effective campaigns to attract property owners and managers with multiple listings. The message is clear and the audience well understood – both key factors for success. It will be fun to watch as Hometownrent.com adds to the long tail of niche market share stealers.

Meanwhile, how are YOU doing—and what are you doing? Give us a MarketingSmack and tell us here – in other words, give us something else to write about.

–Jack

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