Industry News

Craigslist pounds newspapers

Stealing classified ad revenue, says new report

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Craigslist, the free community Web site that generates more than 1 billion page-views each month, has cost newspapers in the San Francisco Bay area $50 million to $65 million in employment advertising revenue, a new report shows. Craigslist, which is one-quarter owned by EBay Inc., also has cost the newspapers untold millions more in merchandise and real estate advertising, and has damaged other traditional classified advertising businesses, the report shows. The 57-page report, "Competing with Craig: Strategies and tactics for battling Craigslist and its counterparts," was published by Classified Intelligence LLC, a consulting group. The report is designed to help all classified advertising publishers - newspapers, dot-coms, broadcasters and yellow pages - develop more effective products for auto, employment, real estate and merchandise advertising. Craigslist has created an extremely important and valuable marketplace, and perfectly illustrates the changing nature of the...