Online Classified Entry Increases Revenues

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Newspapers that use technology to make classified ad-placement more efficient increase revenue by as much as 38% compared to papers that do it the old-fashioned way, according to a study by Classified Intelligence LLC, the consulting group based in Altamonte Springs, Fla.

Based on interviews with classified advertising executives at over 75 newspapers, the study compared papers that accept ads by phone and those that allow users to place their ads online. The study was underwritten by AdStar Inc., the Marina del Rey, Calif.-based application service provider used by many newspaper classified operations.

The study found that ads placed directly online by advertisers averaged 5% to 38% more revenue than ads placed by phone. One newspaper reported $500,000 in revenues from classified ads placed online that executives believe they would not receive without their online system.

“It may be counter-intuitive to newspapers that want a direct, personal relationship with their advertisers, but by letting customers build their own ads online, when they want to, newspapers increase revenue, reduce costs, and improve customer service,” said Peter M. Zollman, founder of Classified Intelligence.

AdStar President Leslie Bernhard said her clients see 40% of their classified ad activity processed during the evenings and weekends, when telephone order rooms are typically closed.

The free report is available for download at http://www.aimgroup.com/reports.

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