Classifieds – GenerallyGlobalClassified advertising is now moving to the next stage, one in which free classified ads willserve as content opposite targeted, paid-for display ads, much like any other form <strong>of</strong> content,such as news or feature stories, according to a new report from Jupiter Research. In theprocess, major national sites will emerge to dominate classifieds using this new model,sapping them away from traditional local classified vehicles, such as daily newspapers,predicts the study. “New competitors will use networked classifieds to do to classifiedadvertising what the web did to content,” says the report. And as these new competitors,which will include the likes <strong>of</strong> Micros<strong>of</strong>t and Google, wrestle for control <strong>of</strong> the classifiedmarketplace, it will have an enormous impact on local papers. “They are going to getremade,” says Barry Parr, lead author <strong>of</strong> the Jupiter Research report, referring newspaperclassifieds. “You won’t see online killing them right away. But you clearly would seerevenues decline, and you could see more creativity in the way they are presented.” In thereport, called “Classified Advertising: Seizing Opportunities during a Second Wave <strong>of</strong> MarketDisruption,” researchers forecast that the online classified market will grow some 60 percentover the next five years, for a compound annual growth rate <strong>of</strong> 10 percent. While that’s notquite as fast as the 79 percent they are forecasting for search marketing over the five-yearperiod, classifieds are expected to hold their share <strong>of</strong> the online advertising market, currently22 percent. But the forecast for a static market share belies the huge changes as what has longbeen a local business falls increasingly under the control <strong>of</strong> a small number <strong>of</strong> nationalcompanies. These companies will be able to use information learned about someone searchingthe classifieds, such as where they live, what sort <strong>of</strong> job they do or where they are interestedin buying a house, to help deliver highly targeted paid display ads. Already Google andMicros<strong>of</strong>t are in the early stages <strong>of</strong> pushing in and reforming the market. And Parr expectsCraigslist and Yahoo to enter too. “This is really early on in the market. It’s not as if you havethree or four major operators duking it out for control <strong>of</strong> the majority <strong>of</strong> classified advertising.But a year or a year and a half from now it could look a lot different,” says Parr. Already outthere is a site called Simply Hired, which was developed by a small company for jobclassifieds. It follows what Parr sees as the new model. It spiders the web for job ads fittingthe user’s search and presents these opposite targeted, paid-for display advertising. The bones<strong>of</strong> the new world are also in Micros<strong>of</strong>t’s Windows Expo Live, currently a beta version <strong>of</strong>feredin Seattle. The product gives away classified advertising but aims to make money by upsellingfeatured listings to advertisers and selling targeted contextual advertising against theclassifieds. Another expected competitor is Craigslist, which despite shaking up the marketinitially, has not yet made the jump into using its site to sell display advertising against theclassifieds. The potential for such a system is also present in Google’s Google Base, a productthat attempts to build a universal database that can store all information. While currently most<strong>of</strong> this potential is unrealized, Parr believes Google will develop this application. As this newmarket develops it will have a great impact on newspapers, believes Parr, who says those thatdon’t have a relationship with a national online classifieds partner are at a competitivedisadvantage relative to the national players. The new world will force changes in newspaperprint classified sections. While it is as yet unclear exactly what form they will take, Parranticipates print classifieds may take on more <strong>of</strong> a display advertising quality, moving towardbrand advertising. “I don’t think that it will all shift online,” says Parr. “But it may becomeunrecognizable as classifieds.”http://www.medialifemagazine.com/artman/publish/article_4606.asp; May 9, 200626
ZambiaThe overwhelming success <strong>of</strong> a new classifieds supplement has turned it into a major revenuegenerating tool for ‘The Post’ newspaper in Zambia. A unique design, clever brandinginitiatives, and a far-reaching distribution network have contributed to the success <strong>of</strong> thesupplement, aptly called Sangwapo, which translates into ‘the place to be’. ‘The Post’launched the classifieds supplement to carry personal announcements such as anniversariesand marriage announcements in June 2005. The supplement, originally a four-page pull-out,proved so popular that six months after its launch, the newspaper decided to increase thenumber <strong>of</strong> pages to twelve. Today, it is looking to grow the number to a total <strong>of</strong> 16 pages. Thesupplement also carries advertising space for small enterprises that cannot afford to buytraditional ad space in the rest <strong>of</strong> the newspaper, and in doing so, has also increased theoverall revenues from advertising. This has not led to a loss <strong>of</strong> traditional advertising for thenewspaper. In fact, the main advertisers are doubling the space they are buying because theirsmaller competitors are advertising in the supplement so they want to appear there as well.Fifty percent <strong>of</strong> the newspaper’s sales are to readers in the capital <strong>of</strong> Lusaka. The Copper Beltregion makes up ten percent its sales and the remaining forty is distributed through Zambia’sother provinces. Circulation for ‘The Post’ is approximately 40,000, but this numberfluctuates with sales being higher during the week. Forty percent <strong>of</strong> the newspaper’s revenuescomes from advertising and sixty from sales. It is the highest circulation newspaper in thecountry. The RAP 21 Newsletter No 4/2006, February 27, 2006Real Estate Advertising OnlineUnited States <strong>of</strong> AmericaForSaleByOwner.com announced it has partnered with USATODAY.com, one <strong>of</strong> the nationslargest newspapers to provide a newly launched buy owner real estate center onUSATODAY.com giving millions <strong>of</strong> online newspaper readers the tools to buy and sell realestate without having to pay a broker commission. The deal is ForSaleByOwner's firstalliance with a media company. Under terms <strong>of</strong> the partnership, USATODAY.com will directits more than 9.8 million monthly visitors to an exclusive, jointly branded site <strong>of</strong>fering the fullrange <strong>of</strong> ForSaleByOwner.com services including listing packages, homes for sale by owner,city pr<strong>of</strong>iles and school reports as well as detailed information and tips that outline every step<strong>of</strong> the home selling process. Based on a broker's standard commission <strong>of</strong> 6%, a person sellinga home for $250,000 could save as much as $15,000 using ForSaleByOwner.com. In additionto property listings, ForSaleByOwner.com provides a comprehensive set <strong>of</strong> services includingcity comparisons, school district reports, moving company finders and cost <strong>of</strong> livingcomparisons that are invaluable for consumer who are relocating or buying vacationproperties. According to industry estimates, currently one in four homes are sold directly bytheir owners, and it is also reported that more than 74% <strong>of</strong> buyers look at homes online beforeviewing properties in person.http://finanzen.net/news/news_detail.asp?NewsNr=372631; February 13, 2006Advertising Design / Creativity / Campaigns / AwardsAustriaThe Austrian Newspaper <strong>Association</strong> is joining the European-wide "Best Y.E.T." advertisingcompetition to help promote newspaper advertising among young creatives. The associationis, for the first time, organizing a national competition to start in mid-February, with the twowinning teams to enter the European Best Y.E.T. event. Contact: Walter Schaffelh<strong>of</strong>er,27
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