Newspapers Grow Revenue By Selling Print Classified Ads Online
- by February 18, 2002
The study, "Selling Print Classifieds Online," showed that ads placed directly online by advertisers averaged 5 to 38% more revenue than comparable ads placed by phone. One newspaper developed 20 new display and classified-display advertisers through an online ordering system - and all 20 became repeat advertisers.
The report also says that one newspaper generates an estimated $500,000 annually online with ads that it believes it would not receive otherwise. A small-market daily is generating an average of $1,000 per day in ads placed online - almost 10% of its transitory classified ad business.
"By spending more money, some advertisers prove they prefer to place their print ads online," said Peter M. Zollman, founder and executive editor of Classified Intelligence. "Obviously, newspapers must maintain strong telephone sales efforts - but they also should offer easy, comprehensive online ad-input systems to serve their customers better."
"It may be counter-intuitive to newspapers that want a direct, personal relationship with their advertisers - but by letting customers build their own ads online, when they want to, newspapers increase revenue, reduce costs and improve customer service," Zollman said. "It's a 'no-brainer' for newspapers that want to find new business models for interactive-media services, and provide the best possible service to their advertisers."
The 37-page report was based on interviews with classified advertising executives at more than 75 newspapers throughout the U.S. The report was researched and written by Classified Intelligence. L.L.C., a consulting group focusing on interactive and print classified advertising. It was sponsored by Adstar, Inc., an application service provider that works with dozens of newspapers to support online sales of print classifieds.
