Classified advertising is the most underappreciated and misunderstood category of ads in the online industry.
Newspapers and magazines traditionally provided the bulk of classified advertising and made a tremendous amount of money from it, especially newspapers with the employment, automotive and real estate categories.
That lucrative business has declined dramatically in recent years as advertisers have moved their money from print to online.
But once online, the classified category has largely vanished. Why? (more…)
An effective online classified ad strategy will provide a valuable revenue stream that enhances that revenue coming from other sources such as display ads.
Just to be clear, online classifieds are pure text ads presented in a directly-style format. In effect, they are a form of paid content.
A site that focuses mainly on display ads — say three to four ads per page — will have an RPM limited by those ad positions. But imagine what happens to the RPM when those three to four ads positions are on pages with classifieds. (more…)
Mature online newspapers now generate more revenue from online-only classified ads than classified upsells. Other newspapers rely heavily on upsells and are creating opportunities for online-only competition to win over their customers with lower prices.
A number of papers still sees a significant amount of revenue from classified upsells, while some, even now, don?t charge anything separately for an upsell. They bundle it in with the print ad in one price, which often is used to justify the print side and ends up devaluing the online portion. (more…)
Newspapers that consider offering online-only classified line ads to their customers often do so with trepidation.
The worries are common. We need to build our weakening print liner volume. We don’t need to develop a product with lower revenue and that will encourage our print customers to buy online-only and discourage them from buying print anymore. (more…)