Zillow (NASDAQ:Z) shares fell 8.5% on Monday after reports that Alphabet Inc (NASDAQ:GOOG)'s Google is testing a new mobile real estate advertising format that could challenge the online property portal’s lead-generation business.
The search giant’s new ad unit, developed in partnership with real estate analytics and brokerage firm ComeHome, allows users to view live MLS listings directly within Google search results and request home tours through a “Request a tour” button.
The feature is designed to connect prospective buyers with top-rated local agents, with an expected response time of around 15 minutes.
Google’s format includes filters for bedrooms, bathrooms, square footage, price, and new listing status, mirroring capabilities commonly found on dedicated real estate portals like Zillow.
By enabling users to schedule showings and access comparable listings directly on mobile search, the feature could reduce traffic to Zillow and undermine its Premier Agent program, which generates leads for buy-side agents.