Craigslist Chews up Millions in Newspaper Ad Revenue

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Craigslist Costs Newspapers Millions In Classified Ads Revenue
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Social classifieds site Craigslist is eating up millions in ad revenue that would have otherwise gone the way of newspaper classifieds:

The non-profit site has also cost newspapers millions of dollars more in merchandise, real estate and other traditional classified advertising businesses, Classified Intelligence LLC said in a recent report on the self-service site's impact. Craigslist, which is a quarter owned by EBay Inc., has grown to a billion page-views a month.

"Craigslist has created an extremely important and valuable marketplace, and perfectly illustrates the changing nature of the classified advertising industry," Peter M. Zollman, founding principal of Classified Intelligence, said in a statement.


Its the community, stupid

Craiglist/ebay wiped out the middle-man in the newspaper classified industry that had been built up over previous generations. Not only did they offer free or cheap ways to list your items but both websites offer a community forum. The community forum created instant feedback mechanisms for classifieds not previously available by traditional newspapers.

To this day, I am not sure why traditional newspapers have not made more of an effort to tap the communtity aspect of their readership.

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