Commentary

Online Classifieds Take Newsprint Down

According to the findings of an April 2009 survey by the Pew Research Center's Internet & American Life Project, the number of online adults who have used online classified ads has more than doubled in the past four years. Almost half of internet users say they have ever used online classified sites, compared with 22% of online adults who had done so in 2005. And, on any given day about a tenth of internet users (9%) visit online classified sites, up from 4% in 2005.

Use of Online Classified Ad Sites (2005-2009)

Year

% of Online Adults Who Have Ever Used Online Classifieds

Use Online Classified on a Typical Day

2005

22%

45

2006

30

4

2007

32

6

2009

49

9

Source: Pew Internet & American Life Project, March-April  2009

The growing importance of such sites to internet users reflect the changes in the audience for classified ads, both those who place them and those who make purchases, that have devastated a key revenue source for traditional newspapers.

Newspaper Classified Ad Revenue (1980-2008)

Year

Revenue in Million $

1980

$4,222

1985

8,375

1990

11,500

1995

13,742

2000

19,608

2005

17,312

2008

9,975

Source: NAA Business Analysis & Research, May 2009

In the world of online classified advertising, Craigslist is by far the most used website in the United States. In March 2009, classified sites averaged 53.8 million unique visitors, up 7% from February. Craigslist had 42.2 million unique visitors in the month of March.

The free, no-frills, user-generated and self-policing classified ads site has grown tremendously since its start in 1996 in San Francisco. As of April 2009, Craigslist had established itself in over 500 cities across 50 different countries.

Classified ads sites are a one-stop-"shop" for everything from jobs to apartments to furniture to movers to puppies. However, users don't buy anything directly on classified websites, they use the sites to set up meetings, and transactions are conducted in person or by mail, a characteristic which separates online classifieds from auction or shopping websites like eBay and Amazon.

And, some demographic information about Online classified advertising users:

Online Classified Ad Use by Age

User (Age)

% Ever Using Classified Site

% Using Classified Site on a Typical Day

All Internet Users

49%

9%

18-24

49

11

25-34

62

16

35-44

57

10

45-54

48

7

55-64

35

4

65+

26

3

Source: Pew Internet & American Life Project, March-April  2009

 

Online Classified User Demographics

User

% Ever Used Classified Site

% Using Classified Site on Typical Day

Increase in Classified Use 2005-2009 (% Points)

All Internet users

49%

9%

27

Gender

   Men

51

12

28

   Women

47

7

25

Race

   Whites

49

10

26

   Blacks

44

8

27

   Hispanics

49

10

28

Education

   < High school

40

7

24

   High school grad

45

8

28

   Some college

49

12

25

   College grad +

54

9

26

HH Income

   < $30,000

42

6

23

   30-49.9

47

9

29

   60-74.9

56

13

31

      75 +

56

12

26

Community Type

   Urban

47

10

na

   Suburban

47

10

na

   Rural

32

4

na

Source: Pew Internet & American Life Project, March-April  2009

More information on the Pew Internet Report can be found here.

1 comment about "Online Classifieds Take Newsprint Down".
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