TV Stations Gain Ground in Classifieds

By: Jennifer Saba TV stations are winning a growing share of the annual $16 billion U.S. daily newspaper classified ad market, according to a new report from Classified Intelligence, a consultancy based in Altamonte Springs, Fla.

"It is very clear that some broadcasters have noticed the huge opportunity in classified ads and are starting to go after them very aggressively," said Peter Zollman, founding principal of Classified Intelligence. He predicts that within the next three years, "probably one-third to one-half of all newspapers will face a significant threat from local broadcasters."

As of three years ago, some newspapers were generating 50% of their advertising revenue from classifieds. Depending on the paper, that number has dropped to 20-30%.

The new report "Broadcasters and Classifieds: The New Revenue Stream" identifies several markets where broadcasters offer more jobs, homes or cars online than their daily newspaper counterparts by taking a snapshot of activity during one day in October 2003.

In Seattle the study found that the joint Web site for the Seattle Post-Intelligencer and The Seattle Times listed 1,704 new and resell homes. King5.com, the Web site for a Belo-owned NBC affiliate station, had 12,225 listings for new and resell homes during that same time. "This doesn't translate into revenue or better content," Zollman said about the findings adding that broadcasters often charge different rates than newspapers. "The one thing it does translate into is 'Where am I as a user going to find the best information and the best experience?' If I were a newspaper I would look at those numbers and be extremely concerned."

Automotive ads are also up for grabs. In Minneapolis, the Star Tribune has approximately 14,500 used cars listed on its site. The St. Paul Pioneer Press lists 16,768 used cars. Channel4000.com, an IBS TV station, which works with a company called CarSoup, listed 24,839 used cars, the study found.

Earlier this week, the Newspaper Association of America reported that for 2003, classified advertising was essentially flat, off 0.6% to $15.8 billion.