Angie’s List Merger Update
In May, Angie’s List rocked the home services world by announcing its buyout from rival company, IAC, also known as HomeAdvisor’s parent company. After a difficult year of poor stock performance, consistent layoffs, and the introduction of their “freemium” model to attract disinterested consumers, Angie’s List has revealed its Q2 Earnings.
As digital marketing experts, we’ve broken down the Angie’s List Q2 earnings and its potential impact on your business.
What’s the Report?
Here are the highlights:
- Angie’s List’s losses increased to $8.1 million
- Revenue from service providers decreased 7% to $62.2 million
- Membership revenue dropped by one-third, garnering $10.2 million
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Their earnings may have shown a lot of reported losses, but Angie’s List is focusing on the bright side of their earnings report. Citing key milestones such as doubling their membership in one year to 6 million, and achieving the highest number of site visitors in the company’s history, they remain steadfast that this is a transformative year for the company.
Will This Affect the Merger?
This merger was founded on the hopes that Angie’s List will bring in customers, while HomeAdvisor will bring in service providers. This plan remains the same. Despite the reported losses by Angie’s List, this doesn’t change the fact that both companies have exceedingly large marketing budgets and will use them to entice new customers to use their services. The less than stellar Q2 earnings may even heighten their audience-boosting campaign by saturating the market with online, TV, and radio ads. You should expect to see a lot of Angie’s List and HomeAdvisor promotion in the coming months.
What Does This Mean for Your Business?
To stay competitive, it’s important to diversify your lead sources to have a consistent influx of new business. Mergers always invite uncertainty, so the best thing you can do is to develop a strategy to ensure your lead flow remains solid and can weather any industry disruption. At Spectrum, we use our digital marketing expertise to generate natural leads for your business. From online reputation, to lead management, to sales reporting, we generate leads and provide you with the tools to nurture those leads into customers.
We'd love to talk with you about gaining better lead generation through high-performance digital marketing. Spectrum can look at your current practices and devise a growth plan, regardless of whether you decide to partner with us. Click below to request a website review or call us at (800) 748-1344.