Online Ad Gain Led by Classifieds

Revenue may lie in the small print for the online advertising industry, as Jupiter Research (a unit of this site’s corporate parent) identifies classified ads as a key driver to 2003’s growth.

With a 38 percent increase from 2000 to 2001, representing a surge from $769 million to $1.2 billion, the growth is expected to escalate to $2.3 billion by 2007. Comparatively, the offline classified advertising market registered 15 percent growth through 2001.

Jupiter expects online advertising to experience 10 percent growth through 2003, increasing to $14 billion in 2007, with online classifieds contributing $1.4 billion in spending in 2003. Recruitment advertising leads the charge in online classified revenue through 2007.

Jupiter expects local online ad spending to be dominated by classifieds, reaching $1.2 billion in 2002 and growing to $3.5 billion by 2007. Jupiter found that classifieds attributed to 91 percent of local online ad spending in 2002, with media placements contributing only 9 percent.

Research from Belden Associates confirms the high usage of online classifieds, with two-thirds of those surveyed saying they visited classifieds, and roughly half of that group visited online classified sections in the week they were queried. Another 15 percent indicated a visit in the past month; 17 percent said they visited in the past six months; 9 percent in the past year; and 4 percent in more than a year.

Like Jupiter, Belden found that online job listings were among the most popular classified sections with higher scores going to local newspapers than Monster.com (65 percent compared to 55 percent).

Belden’s research comes from aggregate interviews of 13,952 visitors (of which 1,467 were solicited from online classified sections) from seven participating sites: AJC.com, Post-Gazette.com, Statesman.com, Reviewjournal.com, MyOC.com, ColoradoSprings.com, and EmeraldCoast.com.


Online Classifieds Spending by Industry, 2001-2007, U.S.
(in millions) 2001 2002 2003 2004 2005 2006 2007
Recruitment $683 $799 $923 $1,057 $1,207 $1,354 $1,498
Automotive $97 $115 $135 $157 $182 $206 $231
Real Estate $209 $241 $274 $310 $350 $387 $424
For Sale $8 $10 $12 $15 $17 $20 $23
Personals $48 $59 $71 $84 $99 $114 $130
Other $16 $19 $22 $25 $29 $32 $36
Total $1,061 $1,242 $1,436 $1,648 $1,884 $2,114 $2,343
Note: Sum of categories may not equal total, due to rounding.
Source: Jupiter Research


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