Newspaper are going to have to change significantly if they are going to stay in business. Classified ads have always been a big revenue source for newspapers. Newspapers are now losing to the internet media classifieds for merchandise, housing, cars, and jobs.
Poynter E-Media Tidbits posts: Consultants: Classifieds Are in Big, Big Trouble. Did you notice this yesterday (from Ad Age)? Consultants from McKinsey & Co. (the same group advising Rupert Murdoch’s News Corp. on Internet strategy) told the Newspaper Association of America convention in San Francisco that newspaper classifieds’ Internet-caused erosion will cost U.S. newspapers about 9 percent of total ad revenues (or 20 percent of classified revenues) by 2007 — or $4 billion.
I tend to harp on things like Craigslist with its free classifieds as being powerful but under-appreciated competition to newspapers, but McKinsey’s Luis Ubinas says the real problem is rather what the pricing of the Internet competition (…) Entry continued… By steve@poynter.org (Steve Outing).
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