Classified Ads Market: How To Make Money In It

In this article a survey about one of the hottestIn little market like Italy classified ads are hot too.
market on Internet: online classified ads. With GoogleTrader Classified Media, one of the largest classified
and Microsoft now offering free classifieds, Craigslistadvertising companies in the world, has recently
( ) and its free classifieds growing into an internationalfinalised the acquisition of Annuncigratuiti.it (classified
force, and EBay investing more than $1 billion inads site with about 70,000 listings) for EUR1.4 million.
classified advertising sites worldwide, this market canMoreover, a Kijiji clone, Annunci.net ( ) is starting its
be considered the new Eldorado.activities in Italy.
Free online classified ads market starts in 1995 whenWith this market it is clear that some advertising is
Craig Newmark began sending friends in Sanmoving from print to online, and it can only be
Francisco e-mail messages with lists of local events.assumed that this trend will continue relentlessly. Most
This became Craig's List, a massive not-for-profitof the classified market will shift to the Internet. The
community service which has expanded across thecompetition on the Internet is more intense, causing
most important cities in the United States and manylower margins, with lower profitability of printed
cities in other countries. The service gets 4 billionproduct.
page views and 10 million unique visitors everyWhat is the key factor in order to have success in
month, with a staff of just 21. Annual revenue ofthis busy market? Innovation.
Craigslist approached $10 million .Mobile is set to revolutionise the media and
In Europe in 1999 Het Goed Beheer BV, a companycommunications in a way that nothing has done to
that owns second-hand retail shops in Thedate. Already more media consumers use mobile SMS
Netherlands, founded Marktplaats.nl ( ), a websitetexting services than do the Internet.
where buyers and sellers can meet to trade a wideMobile offers a range of specific benefits in the
array of items, from clothing and collectibles to carsclassified arena. It allows advertisers to place and
and household items.receive advertisements where and whenever they
Today it is the most popular classifieds website inwish. Charging for the advertisement (or alert) can be
The Netherlands with more than one million listings atintegrated into the phone billing service, making
any given time. In 2003 they launched an internationalpayment a seamless aspect of the service; Moreover
version of the service, Intoko.com, into Spain andmobile phones can now carry advertisements with
Germany, shortly followed by Canada and Turkey.pictures. The next generation of phones will be able
In November 2004, eBay acquired Marktplaats.nl fromto carry video-clips or internal views of rooms in
HGB. Ebay paid EUR225 million for a company thathomes.
was estimated at the time to be turning over EUR12AdsML will be an international standards initiative to
million - a multiple of 18.8 times turnover, against acreate the first truly global, comprehensive standard
norm for newspaper companies of around 3.2.for end-to-end advertising workflows.
It is clear that eBay is confident that theThe initiative was set-up to provide participants in the
Marketplaats business model will work across theadvertising supply chain with a set of internationally
world, and that further expansion will justify theiradopted XML based specifications and business
heavy investment.processes that will create value and reduce costs by
Marktplaats.nl was only an acquisition of Ebay in theproviding standardized electronic processes for all
classified ads space:o on August 13 2004 eBay tooksectors of the advertising industry.
a 25% stake in Craigslist;o in February 2005 EbayAdsML provides an XML framework for unifying and
launched Kijiji ( ), a Craigslist clone for posting localextending XML advertising standards.
classified ads;o in May 2005 eBay acquired Gumtree,These are all factors that need to be facilitated by
a network of UK local city classifieds sites;o on Mayintegrated technical solutions, which enhance the
18 2005 eBay acquired the Spanish classifieds sitegeneral listings and add to the value and usability of
Loquo;o at the end of June 2005 eBay acquired thethe site.
German language classifieds site Opus Forum;