CLASSIFIEDS ONLINE: Where now? Where next?

This report considers recent developments, trends, opportunities and threats in classified advertising markets in the UK, Europe and US. As well as addressing the key issues and recent developments in the jobs, homes, cars and small ads sectors, the report discusses lessons that can be learnt in the UK from the US and possibilities for further interaction with European players in this sector. In addition, the report contains up-to-date figures on this market from the World Advertising Research Centre (WARC).

UK Jobs

This is the classified sector that is generating most profits online. UK publishers, both newspapers and niche magazines, were reasonably early adopters and are now seeing substantial revenues online to counterbalance print losses in this area. While print recruitment classifieds are holding up well, it remains to be seen whether the UK will follow the US in a much more radical shift online in this sector. The US experience has been that the new online revenues do not even begin to make up for those lost from print publications.

fish4jobs and Reed Elsevier?s TotalJobs are competing for the leading role in this market, with recent measurements still leaving the number one spot in doubt. fish4jobs, however, is expecting strong audited January figures.

Hot Topics

This focus report looks closely at recent developments in public sector recruitment, and in particular at the new NHS jobs site currently at the pilot stage. We consider who the likely winners and losers will be as the beginnings of a revolution unfold in this sector.

The report also considers:

• the roles of niche sites and corporate recruitment web sites in this sector;

• the move by some newspaper groups to offer explicit pricing for online classified ads, rather than bundling them with print; and

• current uses of CV databases and job matching technology.

UK Homes

Rightmove is dominant at the moment - but not perhaps as dominant in terms of users as some of the measurement figures suggest. Experts expect further consolidation in this market but differ on how the market will shape up. Rightmove remains confident that it can emulate Homestore in the US by becoming a single dominant player, while fish4 and other competitors point to the appetite amongst independent agents to see a homes portal not owned by major corporate agents. fish4homes and Findaproperty (owned by independent agents in Brighton and London) have local advantage here.

The report also considers:

• The possible move of fish4homes towards charging its existing estate agent shareholders for listings;

• Resolving the issue of quality in property adverts;

• Likely opportunities offered by the arrival of House Information Packs.

UK Cars

Autotrader is dominant here and as yet a number two player has yet to emerge. Speculation about the possible interest of eBay Motors in the UK market, following its acquisition of Mobile.de in Germany, has so far foundered on the absence of a likely independent player for eBay to purchase. fish4cars and Exchange & Mart are both also playing in this market, but neither seems a possible route in for eBay.

UK Small Ads

Loot and Exchange & Mart contest this market. As both print publications have always been sold on a free listings and cover price model, the move to the web has been challenging. Loot is addressing this issue by upselling free ads and building up its core trade buyers. Exchange & Mart has concentrated in the last year on alternative delivery channels, launching a QVC-style interactive TV channel on Sky Active which allows users to click through to listings and setting up a WAP deal with Bango for access to Exchange & Mart content.

A look at Europe

While experts interviewed in this report concluded that there were few opportunities for cross-border classified advertising, fish4 has benefited from its two European alliances