Bye Bye, Classifieds

Posted by: Rob Hof on April 27, 2005

This should be scary for newspapers, if they aren’t scared already. McKinsey consultants Luis Ubinas and Jochen Heck warn (free registration required) that newspapers could lose $4 billion, or 20% of their classified ads, by 2007. And the problem isn’t just sites such as Craiglist, which has vaporized up to $65 million of help-wanted ads in the San Francisco Bay Area alone. It’s that prices for these highly lucrative ads are dropping thanks to the online competition.

Is there any reason to assume that the erosion will stop at classified ads? Don’t think so. After all, Google has just started testing display ads. The first shots may have been fired in classified ads, but traditional publishers may face a longer, bloodier war of attrition than they realize.

Reader Comments

YEN

August 22, 2008 2:12 AM

Media companies are all buying free local classifieds websites.

livedeal.ca sold to the star for 13 million

kijiji buys gumtree.com for 96 Million

yahoo buys classifiedextra.ca for 19 Million

Newscorp buys nowclassifeds for 50 Million

olx.com gets 26 Million in funding.

www.shopandsave.com now Canadas 3rd largest classifieds ( owner unknown)

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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