Zillow didn't like what the models were telling them to do, so they "turned up the dials".

On Q2 earnings call they said:

"We've been testing price elasticity in this hot housing market and we saw rapid conversion gains throughout the quarter as we improved our offer strength" Image
"The employees' accounts suggested that Zillow's iBuying problems had less to do with a glitch in its computer-driven, algorithmic approach to purchasing homes or unpredictable swings in prices and more to do with the overexuberance of human managers" businessinsider.com/zillow-insider…
"leadership wanted to be aggressive on acquisitions and incentivized all teams to err on the side of growth, which manifested in system overrides."

"Zillow put together a plan to speed up pace and volume of home purchases, dubbing it Project Ketchup. Zillow planned to buy more homes by spending more money, offering prices well above what its algorithm and analysts picked as market value, people familiar with the matter said" Image
"Staffers grew concerned Zillow was paying too much... Analysts whose job it was to confirm the prices of homes found that they were routinely overruled, those people said, because the company had retooled the system to raise the analysts’ suggested prices." Image
Zillow Offers tick tock confirming what we knew. It was a conscious decision by management to override their pricing algorithms in order to buy more homes.

wsj.com/articles/zillo…

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with modest proposal

modest proposal Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @modestproposal1

1 Nov
"A hidden scaffolding of financial incentives underpins the policing of motorists in the United States, encouraging some communities to essentially repurpose armed officers as revenue agents searching for infractions largely unrelated to public safety." nytimes.com/2021/10/31/us/…
"Fueling the culture of traffic stops is the federal government, which issues over $600M a year in highway safety grants that subsidize ticket writing. Although officials say they do not impose quotas, at least 20 states have evaluated police on number of traffic stops per hour"
Read 5 tweets
27 Oct
So billion prices project is now Pricestats and they have an index with state street if anyone wants to pull that. the creator is an economist and has some interesting stuff.

from a paper in Sep, here are changes in online prices across countries through May.
here is a reweighting of the CPI by a more relevant covid consumption basket, also broken down by low and high incomes
Here are his estimates of stockouts by product category in the US, and a cross country comparison
Read 6 tweets
26 Oct
SNAP: "we remain very confident in the underlying performance of our advertising products and when we look at incrementality testing, when we look at first-party data, like on platforms swipes or installs, we see those conversions happening at similar rates they did in the past"
FB: "Targeting is a longer-term challenge. DR products are built on user-level conversions and as a result of iOS changes, we don't see same level of conversion data coming through.. have to rebuild our targeting in optimization systems to work with less data.. multi-year effort"
SNAP: "our first party measurement tools and studies continue to show our ads are effective.. approximately as effective as prior to these changes. it's the really loss of signal required significant changes to our overall technology and we believe mostly a measurement challenge"
Read 5 tweets
25 Oct
Ok, so Facebook did some great free research for the other social platforms. To levelset, here is Facebook estimate of monthly active persons in the US age 16-23 and year over year growth.
Here is a young adults daily journey through social apps. Starting the day with Twitter, like the rest of us junkies. Ending the day financially planning on Reddit is some wild ass euphemism for planning tomorrow's YOLO's on WSB.
Here's how FB thinks young adults view the various social apps
Read 6 tweets
22 Oct
feels like the main Q around IDFA is whether this a loss of measurement problem or is this a loss of targeting i.e. loss of performance problem?

the two main impacted platforms say the former but the latter makes more sense because otherwise why would spend pull back?
On the SNAP call back, roughly:

"if the targeting still works and advertisers are pulling spend aren't they going to lose sales? Why aren't they spending anyway without the measurement?"

I get that you pause to calibrate models/measurement, but is that what we are seeing?
Ok, so smart people have spoken. The iterative nature of measurement feeding back into targeting is causing performance loss.

Read 5 tweets
16 Oct
Some good stats in here, wish there was less editorializing. Marketing at Instagram was. 6%/revs in 19 vs 1% in 21, mostly aimed at teens. Insta DAUs up 24% y/y in Sep 2020. Time spent for teens reached 3-4 hours during Covid up 2x vs 30-45 mins for adults nytimes.com/2021/10/16/tec…
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Thank you for your support!

Follow Us on Twitter!

:(