Companies like Seek – whose Chinese online recruitment site Zhaopin is expanding into education – enjoy a ‘first-mover’ advantage, a report says.

Research company IbisWorld report said this week that effects of this advantage were still evident in internet publishing and broadcasting industries.

“The operators that were first to enter their respective domestic segments now command considerable market share, which is unlikely to weaken in the near future,” it says.

It names Australian online publishers such as Seek, Carsales.com and REA Group (whose website is pictured) which “collectively account for almost 65 per cent of the market”: REA Group – operator of the Realestate.com.au and Realcommercial.com.au websites – commands almost 32 per cent on its own, the report says.

“The company’s sustainable business model is core to its strength, allowing for domination of the domestic segment and expansion abroad.”

REA Group, Seek and Carsales.com were all among the first players in their respective segments. Over time, each has amassed a large and loyal customer base. REA Group, for example, commands over 60 per cent of market share in the residential real estate advertising industry.

“As the rest of the market is highly fragmented, there are few feasible alternatives for disgruntled consumers,” says IbisWorld. “Additionally, customers wishing to change to competitors face high switching costs, as over half of their potential buyers (and their competitors) are using REA Group sites.”

It says the success of REA’s business model has been demonstrated in its revenue growth and profit margins: The company’s five-year annualised growth rate is over 20 per cent, which is significantly better than the internet publishing and broadcasting industry as a whole over the same period.

Low interest rates have kept property in high demand, driving higher postings and traffic on REA’s websites. The increased use of mobile devices among the general population has made accessing the industry’s services easier and more convenient. According to reports from The Australian, 44 per cent of visits to REA Group pages now occur through mobile devices and apps. Low ongoing costs have allowed for incredible profit results – REA Group’s 2012-13 profit margin was a remarkable 45.9 per cent. The company’s ability to generate strong cashflow allows expansions to be financed internally, which is important when local demand is growing and overseas expansion is a goal.

Like Seek and Carsales.com, REA Group has been actively expanding into international markets, primarily Asia, in order to maintain its strong revenue growth. REA Group has taken its real estate advertising model to countries including France, Italy, Germany, Luxembourg, Hong Kong and New Zealand. In July 2014, the company acquired a 17 per cent stake in Malaysia-based online property business iProperty Group Limited. The ASX-listed iProperty operates online property advertising platforms in Malaysia, Indonesia, Hong Kong, Macau and Singapore, and holds investments in India and the Philippines. REA Group’s acquisition recognises the growth of the Asian property market, which is being fuelled by the rapidly growing middle class across Asia.

REA Group, Carsales.com and SEEK have a bright future in the internet publishing and broadcasting industry. First-mover advantage has been hugely significant in this segment, allowing these three players to quickly establish dominance in the local market. Overseas expansion is offering strong ongoing growth prospects, and with a simple, proven business model, these companies are well poised to succeed. IBISWorld forecasts growth of 8.1% for internet publishing and broadcasting in 2014-15, but expects these companies to outperform the industry.

The Australian reported today that Zhaopin, owned 67 per cent by Seek and 16.7 per cent by James Packer plans to roll out educational services in the world’s fastest-growing economy over the next 12 months, fresh from its listing on the New York Stock Exchange.

“It is also looking to export new technologies and services that have been successfully introduced in Australia into its Chinese product offering as the business expands into new geographies,” it says.