How Marketplaces Grow 100%+ Year on Year
Analysis of 6 high performing online marketplaces on the ASX
When a marketplace does well, they’re often acquisition machines, which is why this analysis is going to look at how marketplaces go-to-market.
Marketplaces are notoriously tough to build because you need to acquire on both sides of the business: customers and suppliers. So, marketplaces caught my attention when they made both the Mopoke Cloud Index for 2024 and the short list of compounders.
We’re going to look at how marketplaces acquire through analysing the following:
Mopoke Marketplaces: We’ll look at the six marketplaces that met our Mopoke Index criteria for 2024. A reminder that this criteria filters for technology-driven, product/market fit, <$10bn market cap, >20% revenue growth.
Compounding Marketplaces: This includes 2 marketplaces that have been compounding profit and revenue for a few years now.
Here is an overview of the marketplaces and their go-to-market activities for new acquisitions:
Let’s go through each in alphabetical order.
Airtasker
Airtasker is an online marketplace that connects people who need tasks done with those who are willing to complete them. Users can outsource a wide range of tasks, from everyday chores like cleaning or errands to more specialised work like graphic design or website development.
The key customer acquisition channels for Airtasker are:
Equity-for-media: equity to Australia’s Seven West Media and now UK’s Channel 4.
Paid ads: Airtasker runs ads across Facebook, Google, and probably other platforms targeting specific use cases like moving, cleaning, scratch repairs, and gardening. They don’t run ads on LinkedIn.
Marketplace Stimulus: Airtasker runs jobs for itself to promote Airtasker. For example, it will pay for a job for airtaskers to distribute flyers about Airtasker.
Camplify
Camplify is a peer-to-peer marketplace that lets RV (recreational vehicle) owners rent out their campervans, motorhomes, and caravans to others. It's like Airbnb but specifically for RVs, allowing people to experience the joys of van life without having to own their own vehicle.
The key customer acquisition channels for Camplify are:
SEO: Ranking in the top three results for high intent searches like “campervan hire melbourne” as well as further up the funnel searches like “things to do in a car on a road trip”.
Direct: Brand awareness now brings new traffic and word-of-mouth referrals.
Paid Ads: Camplify is running paid ads on Google and Facebook.
Social: The company has 260,000 combined followers across their social platforms. Their travel-related content lends itself well to being sharable.
Referral: Industry partners send traffic to Camplify. For example, they have partnered with an insurer that actively markets Camplify to its customer base.
Email: A database of 405,000 Camplify and 214,000 PaulCamper registered customers that they can remarket to.
CAR Group
CAR Group is a company that operates digital marketplaces designed for buying and selling vehicles. They own and manage leading online automotive platforms in several countries, including carsales.com.au in Australia, Encar in South Korea, Trader Interactive in the US, and a majority share of Webmotors in Brazil.
The key customer acquisition channels for the CAR Group are:
SEO: Carsales ranks well for many car-related searches. For example, you can search for “buy toyota camry,” and you will see carsales.com.au in first position.
Paid Ads: Carsales also runs paid ads on Google and Facebook (~480 different ads).
Email: The CAR Group uses its email list to market and remarket.
Direct (brand awareness): Given their massive leadership over the competition, they get referrals from word-of-mouth campaigns that drive direct traffic. For example, there is a forum thread on Reddit with people calling out carsales.com.au as the best place to buy/sell a car.
The Market Limited
The Market Limited acquires and operates classifieds and capital markets media properties. It owns Gumtree, Carsguide, Autotrader, Stockhouse, and HotCopper.
The key customer acquisition channels for The Market Limited are:
Brand awareness: The annual report states that 1 in 3 people in Australia visit Gumtree. This market position makes brand awareness a significant driver. Within other focus areas, like car enthusiasts or active retail investors, other properties occupy a prominent mind share.
Paid Ads: The Market Limited buys ads for its websites. For example, Gumtree is advertised on Facebook
SEO: The Market Limited’s properties lend themselves to long-tail search results. For example, HotCopper’s various forum posts rank highly for low-volume search terms on investment-related topics.
Socials: People are likely to share many of the things they post or see to The Market Limited’s various properties. For example, an investor might share a post on HotCopper with friends and colleagues.
Mad Paws
Mad Paws is an online platform that connects pet owners with trusted local pet sitters and walkers. Pet owners can find sitters who offer services like pet boarding, house visits, doggy daycare, and dog walking, providing a convenient and personalised alternative to traditional kennels. They’ve also expanded into additional services for pets, such as insurance.
The key customer acquisition channels for Mad Paws Holdings are:
Paid Ads: Targeted campaigns to acquire sitters in the right area, specifically where they need more people. Interestingly, they aren’t currently running any Facebook ads but are running many Google Ads.
SEO: Mad Paws ranks in the top three, often first, for key terms like “dog sitter” or “dog sitter surrey hills”.
Media Partnerships: They’ve just announced a media partnership with Seven West Media.
Email: Their database across different websites allows for cross-selling opportunities.
Webjet
Webjet is an online travel agency (OTA) based in Australia and New Zealand. It allows customers to compare, combine, and book flights, hotels, holiday packages, car rentals, and travel insurance from a variety of providers.
The key customer acquisition channels for Webjet appear to be:
Paid Ads: Webjet is running ads across Facebook and Google with messaging on flight sales, travel packages, and general holiday fun.
Email: Webjet can use offers to entice people to provide their email so they can remarket to them.
Referrals: They have various industry partners that act as referral sources, from partnerships with insurers to partnerships with travel agents.
Affiliates: You can embed Webjet within other websites and apps as well as other channels in an affiliate-style relationship where the affiliate earns a share of the revenue gained.
Marketplace Go-to-Market
A few observations from the analysis stand out:
Common Acquisition Drivers: Every marketplace is running Paid Ads, SEO and has partnerships that drive them traffic.
Conversion Rate Optimisation: All of these marketplaces are conducting initiatives to streamline their different user flows to improve conversion rates. Airtasker is working to avoid cancelled jobs. Mad Paws redesigned the sitter application process to remove friction. The Car Group is making it easier for people to transact cars digitally.
Brand Awareness: at some point brand awareness kicks in and the brand itself becomes a direct driver of traffic.