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June 26, 2024 | Article
This is the second article in a series of three publications comparing Horizontal Marketplace and Classified platforms. In the first article (available here), I provided a comprehensive comparison of the differences between both platforms. As promised earlier, this article will focus on performance comparison.
In general, one of the most critical questions in modern online sales is which type of platform performs better: Horizontal Marketplaces or Horizontal Classifieds? Both groups are crucial for today's online sales landscape and are rapidly advancing the digitalization of sales processes. I have spent a significant amount of time analyzing both types of platforms, and by the end of this article, you will have a clear understanding of the topic. So let's begin!
Preparation for Analysis and Methodology
To create a comprehensive comparison of performance, I selected the 10 largest European Horizontal Marketplace and Horizontal Classified platforms based on Monthly Visits.
Horizontal Marketplaces:
amazon.de, amazon.co.uk, ebay.co.uk, allegro.pl, ebay.de, amazon.fr, amazon.it, amazon.es, bol.com, otto.de
Horizontal Classifieds:
kleinanzeigen.de, leboncoin.fr, olx.pl, subito.it, olx.ua, finn.no, marktplaats.nl, milanuncios.com, willhaben.at, blocket.se
The reference period is from November 2023 to April 2024. Six months is sufficient to create a comprehensive comparison, especially for older and established platforms that are relatively stable.
To measure and compare the general performance, I will use basic web analytics metrics, namely:
Total Visits - the sum of visits (session) to a website.
Bounce Rate - the percentage of visitors that leave a webpage without taking an action.
Pages Per Visit (Session) - an engagement metric that measures the average number of pages visitors view on a site within a single visit (session).
Average Visit Duration - the average amount of time a user spends on a website during a session (visit).
Direct Traffic - all those visitors who find a website by typing the URL (web name) or through a bookmark.
Organic Traffic - all those visitors that land on your website from unpaid sources, namely search engines.
Paid Search Traffic - paid search results appear at the top of the SERP (Search Engine Results Page), and they feature a little green box with the word "Ad."
I'm not going to analyze the influence of video ads, affiliate links, or banners for specific reasons.
Comparison and Analysis
1. Average Number of Total Visits and Average Month-over-Month Change within 6 Months
It is evident that the number of visits to Horizontal Marketplace platforms is more than three times higher than that of Horizontal Classifieds. However, over the same period, the number of visits to Horizontal Marketplaces is declining by more than 3% monthly, whereas Horizontal Classifieds are gaining visitors at almost 1% monthly.
2. Average Bounce Rate and Average Month-over-Month Change within 6 Months
Horizontal Classifieds have a lower average Bounce Rate, and interestingly, the Bounce Rate is decreasing for them. In contrast, the Bounce Rate is increasing for Horizontal Marketplaces.
3. Average Number of Pages Per Visit (Session) and Average Month-over-Month Change within 6 Months
Horizontal Classified users are more engaged with the platform compared to Horizontal Marketplace users. On average, a Horizontal Classified visitor views 3 more pages per visit than the average Horizontal Marketplace user, which represents an increase of nearly 20%.
4. Average Visit (Session) Duration and Average Month-over-Month Change within 6 Months
Horizontal Classifieds users spend more time on the platform, staying nearly 2 minutes longer on average, which is a significant difference. However, the average time spent on the platform is decreasing for both types of platforms over the six-month period.
5. Average Percentage of Direct Traffic and Average Month-over-Month Change within 6 Months
Direct traffic metrics favor Horizontal Classifieds, with over 70% of users accessing their favorite Horizontal Classifieds directly, without relying on search or advertising. In contrast, for Horizontal Marketplaces, this number is 57%.
6. Average Percentage of Organic Traffic and Average Month-over-Month Change within 6 Months
Organic traffic is slightly better for Horizontal Marketplaces. This means that if a user is searching for a product on the internet via a search engine, they are more likely to click a link leading to a Horizontal Marketplace. However, the discrepancy between the two platform types is negligible.
7. Average Percentage of Paid Search Traffic and Average Month-over-Month Change within 6 Months
In my opinion, this is the second most interesting metric in the whole comparison (after Average Total Visits). Horizontal Marketplaces spend more than 7 times as much as Horizontal Classifieds to attract users without a clear platform preference through paid search traffic. In other words, they compete more aggressively for every undecided visitor.
Let's summarize:
Both types of platforms represent successful evolutions in seller/buyer interactions and are developing well, reaching new heights in their respective markets. However, I have a strong impression that Horizontal Classifieds are thriving better and are more stable. Why is this the case? It's a good question and will be excellent material for the next article.
About the author
Mark Malinovski
mark@tonrock.com, if you have any questions, don't hesitate to contact me.
Data source: similarweb.com and semrush.com
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