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Yahoo (NSDQ: YHOO) is turning to online real estate marketplace Zillow to power real estate listings and handle some of the ad sales on its real estate vertical, which regularly ranks among the most trafficked real estate sites on the web.
During an interview with paidContent, Yahoo Real Estate Head Steve Schultz said the partnership would let Yahoo concentrate on selling ads on Yahoo Real Estate to national advertisers. Zillow’s local sales force will sell advertising and maintain relationships with local real estate agents and brokers. “We see it as a revenue generating opportunity,” he said.
Schultz said that Yahoo was not outsourcing Yahoo Real Estate to a rival — something that the company has essentially done over the last year with several of its other verticals, including Yahoo Health, Yahoo Personals and Yahoo Shopping.
He said that Yahoo Real Estate will have a separate look than Zillow and Yahoo will continue to manage the site, drawing a parallel between the arrangement and Yahoo Autos’ relationship with Cars.com, which powers auto listings on that site. Nevertheless, the move fits with Yahoo’s greater strategy of increasingly putting its own resources into its content and communications properties.
The deal is a coup for Zillow, which will see the reach of its real estate listings “basically double,” according to COO Spencer Rascoff. Zillow and Yahoo Real Estate rank number two and three respectively among online real estate sites in traffic, according to comScore (NSDQ: SCOR) data. Only about 10 percent of the two sites’ audiences overlap, Schultz said.