Zillow pushed back on the idea that Google’s expanded Home Listings Ads pose an immediate portal-traffic threat, telling Barron’s that most of its traffic comes directly to its website. The response followed Google’s expansion of Home Listings Ads across mobile search results in all 50 states.
Zillow shares fell 4.9% after the announcement, while CoStar shares dropped 3.6%, according to the same report. The stock moves put a sharper spotlight on whether more home-search activity could shift directly into Google Search.
Why Zillow sees limited near-term risk
The direct-traffic point suggests Zillow sees less near-term exposure to Google Search than portals that rely more heavily on generic search traffic. Buyers who already open the Zillow app or type Zillow into a browser are not necessarily starting with a query such as “homes for sale near me.”
Portals still offer a broader search workflow than a mobile ad: saved homes, listing comparisons, price-change tracking, neighborhood browsing, and repeat visits. Google can surface listings during high-intent search moments, but the ad format does not yet replace the full portal experience many buyers use throughout their search.
The current Google product also has practical limits. It is mobile-only, and listing eligibility depends on participating MLSs or direct MLS data feeds. A national rollout does not mean every listing in every market will appear.
Inside Google’s Home Listings Ads
Google’s Home Listings Ads appear within Local Services Ads on mobile search. They can display property details such as price, images, the listing agent, neighborhood maps, school information, and walkability scores.
Buyers can call or message a local buyer’s agent from the ad. Agents pay for leads rather than impressions or clicks, and participation requires an active Local Services Ads account, a verified Google Business Profile, standard verification, and the buyer’s agent or seller’s agent job type.
Listing data comes through HouseCanary’s ComeHome platform and participating MLSs. Coverage depends on which MLSs participate and how their rules allow listings to appear.
Where lead budgets could move
The longer-term question is whether Google can capture more of the first interaction between buyers and agents. Paid buyer leads are already a major budget category, and agents may compare Local Services Ads more directly with portal programs if the format produces measurable calls and messages.
That comparison will take work. Google’s reporting does not break out performance by ad format, though leads generated from a specific property listing can include a property ID in the leads inbox. Agents tracking lead quality will need to monitor source details, appointment rates, and close rates rather than relying only on lead volume.
What brokers should ask their MLS
Agents already using Local Services Ads should review cost per lead, appointment rate, and close rate before shifting budget from portals or other channels. Agents not using Local Services Ads should first check whether their MLS participates or plans to participate.
Brokerage leaders should ask how listings are included, how attribution appears, whether opt-out options exist, and whether agents need individual ad accounts to receive paid leads. They should also decide whether Google leads should be tested at the brokerage level or left to individual agents.
Zillow may not be sounding the alarm, but agents should still watch the signal. If Google’s Home Listings Ads expand coverage and produce qualified leads, brokerages will have to decide whether Google belongs beside portals in their buyer-lead budgets.