Opendoor Doubles Its Ad Spend

Opendoor's advertising spend has skyrocketed this year, higher during the first six months of 2022 than ALL of last year.

Why it matters: Even in a slowing market, Opendoor's foot is firmly on the accelerator, growing the business and educating consumers at a scale never seen before.

• In addition to key partnerships , Opendoor is taking its message of a quick, instant sale directly to consumers in a big way.

Opendoor's increased advertising spend is driving an increase in home purchases; it's already purchased nearly twice as many homes in the first six months of 2022 compared to the same time last year.

Opendoor is becoming a real estate advertising juggernaut as it strives to become a leading consumer brand.

• Compared to the same time last year, Zillow spent $12 million less on advertising (largely due to its exit from iBuying), while Opendoor's ad spend surged $71 million.
  

• At its current rate, Opendoor could eclipse Zillow's ad spend in 2022.

The bottom line : At a time when other real estate companies are slowing down and cutting expenses , Opendoor is accelerating.

• It's notable that Opendoor hasn't enacted layoffs, isn't unilaterally cancelling purchase contracts , and has increased its advertising spend.
  

• With a strong balance sheet, Opendoor is taking a long-term view of the business and enthusiastically investing now for future growth.