Classified Information

eMarketer has not at all good things to say about print--or even online--classified ad sales:

[N]ewspapers need to replace every lost reader with between 20 and 100 Web site readers to recover lost income. "We need to make the revenues we earn from online readers equal or more than what we earned from the people who no longer read us in print," he said.

Mr. Crosbie maintained that the US is "the epicenter of a seismic shift in the newspaper business from print to online" and that "speed is of the essence in this shift. Newspapers must serve online advertisers as soon as possible, or forever lose the classified advertising business, plus other forms of online advertising, to 'pure play' Internet competitors."

eMarketer's own projections confirm fears that online classified ad spending does not measure up to other, more vibrant online ad spending formats such as rich media and sponsorships. Although total spending on online classified advertising will continue to grow for several years, it is likely to do no more than match the growth in total spending. Rich media and sponsorships, on the other hand, will grow much more rapidly.

The trouble is that "online classifieds" is a very vague term; no, newspapers' own online classified are not growing hugely, but look at eBay and Craigslist--they're the real destinations for all the former print classified advertisers. And let's not forget, from what I've seen in my own circles, simple e-mailings to friends, acquaintances, colleagues, etc., are replacing classified ads--"I'm selling a [thing]. Anybody know somebody in the market for one?" "I'm looking for [another thing]. Anybody know someone who has it?" I suspect this is becoming more and more common, from my own anecdotal (and sadly data-less) evidence.