Newspapers Losing Online Classified Advertising Battle
It looks like the newspapers have lost another battle they could have won. With fully staffed classified advertising departments and an outside sales staff newspapers should be dominating online classified advertising.
Instead properties like Craigslist and other independent classified online sources are dominating the battle. Real Estate has learned that online is where the leads are and newspapers are a moribund money pit, now we need to tell this story to sellers who insist on newspaper advertising.
But time may be running out. Now, for the first time, pure-play Web companies have the biggest share of the local online-ad market. In 2007, Internet companies had a 43.7% share of the $8.5 billion local online-ad market, while newspaper companies had a 33.4% share, according to the media research firm Borrell Associates. Just three years ago, newspapers had 44.1% of the local online-ad market. (Directories such as the Yellow Pages have 10.1%, and local television outlets 9.3%.)
Local media companies, because they are based in the communities they serve, would seem to have an edge over Internet sellers when it comes to persuading the diner or corner hardware store to take out an ad. But they have largely failed to convert that advantage into sales. Instead of tailoring their sales to local businesses, many newspaper companies initially focused on selling ads to bigger advertisers who were already buying space in their print products. More at WSJ.com.
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Comment by Straight Digs on 19 December 2007:
Thanks for reinforcing what we suspected in our neck of the woods. Placing a classified in our local paper, the Orange County Register, gets you an online ad as well. Not only does it cost infinitely more than a Craigslist ad, but we get far fewer calls as well.
Comment by LANDFLIP - Land for Sale on 20 December 2007:
We hear it time and time again from our customers that newspaper and print advertising is losing traction in their ad budgets. I suspect this trend will continue for some time. It all boils down to more exposure for less money in favor of the Internet.
Comment by Joe P on 20 December 2007:
Working with a online real estate advertising company I hear from agents who literally have cut $30,000 print ad budgets in favor of spending 80% but have the advantage of a national audience for their properties.
Comment by Brett Childress on 20 December 2007:
It actually strikes me funny that the most of the newspaper suits can’t seem to wrap their heads around the fact that they could be in on the online action too. They think they have to battle it out for their print profits but most websites’ business models revolve to some degree around their traffic volume becoming an appealing advertising vehicle to big online businesses for whom classified marketing isn’t an option. So they make their money on the banners, not the classifieds. One of the few good examples of a news agency burying the hatchet and jumping on board is ksl.com, based here in utah. It’s a local NBC affiliate that provides free online classifieds and definitely makes its online money elsewhere. Too bad the rest can’t figure it out.
http://www.vareficenter.com
Comment by dean on 21 December 2007:
Brett,
For the “local suits” to admit that online advertising is both viable and a supercharged revenue stream would be to admit that the print media model is DEAD.
It is only a matter of time, and that time is short, that print media will be greatly reduced in size and power. Bloggers and online media are taking over to the betterment of the consumer and radical transparency.
To those mainstream journalist who scoff or snub their nose at bloggers as ill trained, unadvised, uncouth, wanna be’s I have one thing to say:
Bloggers are taking over the media landscape so rather than fight us try joining us. It is only a matter of time!
dean
Comment by orange county print advertising on 10 September 2008:
I believe,local media is still such an important tool for the companies. To hold something printed is more specialized and carries personal messages.