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interactive local media

Interactive Local Media Advisory

Classified Advertising at a Crossroads
Michael Boland,Greg Sterling , 5/17/2005

Summary: Classified advertising in the U.S. is at something of a crossroads. The U.S. print newspaper industry is in a very similar position to the U.S. print Yellow Pages industry; growth is largely online while revenues remain largely offline. At just under US$2 billion, online classified revenues are significant, but they dont compare to the US$16.6 billion in print revenues. Yet the data collectively indicate that consumer trends are not in the newspapers long-term favor. While online newspaper sites are arguably in a better position, the Internet is much more competitive than traditional newspaper markets.

The issue for print classifieds publishers, then, is figuring out how to preserve existing revenues while growing the online pie in a very competitive environment. The challenge for the online, and often free classified vendors, by contrast, is to develop a model that doesnt simply put price pressure on traditional classifieds and ultimately undermine any sort of classifieds business model on the Internet.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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