December 15, 2005

The Craigslist- (and Google- and Microsoft-) inspired trend for daily newspapers to offer free classifieds inches along.

The San Diego Union-Tribune
is reporting that its free-classifieds program, in place since late
August, is a “success.” It allows private parties to place up to 12
free ads per year which go in the print edition and on the website.
Free ads are permitted in the categories of merchandise, automotive,
boats, jobs wanted, found pets, and found items; goods for sale cannot
be valued at more than $5,000.

What you get for free is a three-line text ad running for seven days;
if you want more text or a longer run, you’ll pay an extra fee. There
are plenty of ways the newspaper can get your money: upcharges for
photos, attention getters, etc.

The site has looked in at how the free program is performing after 90 days. In a press release, it reports:

  • Call volume is up 27 percent over the same period last year.
  • Private-party ad volume is up 160 percent.
  • Ads placed via the Internet are up 435 percent.

No word yet on the monetary results.

We’re seeing an evolution toward free classifieds here. The Union-Tribune
has gone further (I believe) than any other major metro daily newspaper
in the U.S. with its free-ads offering. It’s actually offering free
print ads, which is a major sea change. But online, compared to the
kind of free ad you can place on Craigslist or Google Base, the U-T
free ads are skimpy. Those services allow multiple free photos and lots
of text (and certainly there will be more free features as Base
evolves).

I think you’ll see in time that more newspapers will expand their
free-ads offerings; if Google’s and Microsoft’s classifieds services
take off, they’ll have little choice. As I’ve said before, the R&D
right now should be focused on how to make money from free ads (a topic
I’ve covered here previously).

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Steve Outing is a thought leader in the online media industry, having spent the last 14 years assisting and advising media companies on Internet strategy…
Steve Outing

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