A new report says online classifieds site Craigslist cost newspapers in the San Francisco Bay area $50 million to $65 million in employment advertising revenue.
Craigslist has also cost the newspapers "untold millions" more in merchandise and real estate advertising and damaged other traditional classified advertising businesses, according to the report published by Classified Intelligence LLC. The company is a consultant to media companies, dot-coms, yellow page publishers and broadcasters to help develop successful interactive classified advertising services.
Classified Intelligence says its 57-page report, "Competing with Craig: Strategies and tactics for battling Craigslist and its counterparts," is designed to help all classified advertising publishers develop more effective products for auto, employment, real estate and merchandise advertising.
"Craigslist has created an extremely important and valuable marketplace, and perfectly illustrates the changing nature of the classified advertising industry," said Peter M. Zollman, founding principal of Classified Intelligence. "All classified advertising companies should learn from Craigslist and its founder, Craig Newmark, about effectively serving their audiences."
eBay owns a 25 percent stake in Craigslist.
According to Classified Intelligence, classified advertising represents a $28 billion to $30 billion business in the United States, including $16 billion in daily newspapers, and an estimated $100 billion business internationally.
A free preview is available online, the full report costs $250.
http://www.ClassifiedIntelligence.com
