How will REA Group counter CoStar's marketing surge post-takeover of Domain?

REA Group is preparing to counter CoStar's anticipated increase in marketing efforts following its takeover of Domain. Here's how REA plans to respond: 1. **Cost Management**: REA has guided for high single-digit growth in core operating costs for the 12 months through June 2026, which is below its targeted revenue growth rate. This strategic cost management will help REA maintain profitability despite the expected rise in marketing expenditures by CoStar. 2. **Marketing Strategy**: REA's CEO, Owen Wilson, has stated that the company's cost guidance has factored in CoStar's entry into the market and any potential impact on audience. Wilson expects CoStar's marketing efforts to be significant, but believes REA Group is well-positioned to counter them. REA has been preparing for this event since mid-2024 and is confident in its ability to maintain its audience share despite the anticipated increase in marketing outlay by CoStar. 3. **Strategic Shifts**: Wilson's move to join Carma as board chair is seen as a strategic shift, bringing extensive experience in the listed market to the new role. This move may signal a new era for REA, positioning it to adapt to the changing competitive landscape. In conclusion, REA Group is taking a proactive approach to counter CoStar's marketing surge by managing costs, anticipating market moves and preparing for the competition.