Realtor.com and NRT Inc. have extended their marketing agreement, which enhances the presence of NRT’s local operating companies on the Realtor.com Web site, for an additional two years, according to an announcement today.
Realtor.com is the official Web site of the National Association of Realtors and is operated by Westlake Village, Calif.-based Homestore, d/b/a Move.com. The site includes Realtor-represented home listings from multiple listing services around the country.
NRT, a subsidiary of Cendant Corp., owns and operates residential real estate brokerage companies in more than 35 major metropolitan markets in the United States and the United Kingdom under the banner of the Coldwell Banker, ERA and Sotheby’s International Realty brands, as well as The Corcoran Group and The Sunshine Group.
The extension agreement ensures that all of NRT’s listings will be enhanced through March 2008 and surrenders a portion of the previously committed Realtor.com display-advertising inventory, including inventory in markets that have been sold out, for resale to other customers. The company will recognize a minimum of $24.7 million in revenue over the new two-year term. The extension agreement also calls for NRT to partner with Realtor.com in the sale of Realtor.com’s marketing solutions by sponsoring and hosting events for NRT’s agents.
The extension of the marketing agreement comes at the end of a one-year agreement that was entered into in February 2005. At that time, NRT agreed to enhance all of their listings on Realtor.com and to utilize a significant amount of Realtor.com’s display advertising inventory. NRT also secured two one-year renewal options at fixed prices. Had each of the options been exercised, the total value of the original agreement would have been at least $38 million over three years.
Homestore’s total revenue associated with the initial one-year agreement and the newly-signed extension agreement will be above 90 percent of the potential revenue associated with the initial agreement announced last year, while committing a smaller share of Realtor.com’s display advertising inventory, eliminating any contract renewal risk in 2007, and engaging NRT to assist in the marketing of additional Realtor.com marketing solutions directly to their agents.
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