January 30, 2019
The most unappreciated and misapprehend category of ads in the online industry is Classified advertising. A lot of money is generated from newspapers and magazines by traditionally providing the bulk of classified advertising, especially newspapers with the employment, automotive and real estate categories.
In recent years, the lucrative business has declined dramatically. It is because advertisers have moved their money from print to online.
But once online, the classified category has largely disappeared. Why?
The Internet Advertising Bureau offers quarterly and annual reports about the state of online advertising. These reports rank the following five categories:
Search – 38 per cent of the total
Mobile – 25 percent
Banner – 13 percent
Video – 7 percent
Classified – 5 percent
More importantly, the IAB reports reveal a steady decline in total revenue for classified advertising. But these numbers are ambiguous because of how the IAB defines each category.
Classified Revenue is Alive and Well
It has been noticed that for more than a century, a typical classified ad has been a brief text ad. In contrast, a display ad is a larger format image ad. Display ad usually doesn’t have any graphics while the second one does. The billions of dollars of classified advertising aren’t disappearing. They are simply being engrossed into what IAB calls the search and mobile categories.
Search advertising comprises of ads that display on the search engines — such as Google, Bing and Yahoo! — as well as on their partner sites. You can see that most of those ads comprise of a block of four or five text ads excluding display graphical ads.
Making Money from Classifieds
If you will think that classified advertising isn’t worth pursuing because it is in decline, it would be a terrible mistake. But classifieds are doing good. They display all over in two important forms A. Desktop B. Mobile sites.
A. The first form is a type of display ad that contains one or more classified text ads.
B. The second and more traditional form is a straight list of ads that may fill an entire page.
It helps a site publisher to encourage these small and simple text ads as a way of producing extra revenue and filling unsold display inventory.
Because of their small size, they are best sold by an automated process or as part of a longer-term contract. It permits an advertiser to post multiple versions over a period of time.
Don’t be wobble by unsound terminology. Classified advertising is quite alive, well and paying big dollars.