Online classifieds a growing threat to newspapers

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Internet-based classified advertising will affect revenues of newspaper classified ad sections in as little as three years, said a report from Editor & Publisher. There are many who would say the threat is already here, however. The report said that classified ad revenue represents 37% of newspapers' overall revenue, and that base will be tested by local online services, local TV station Web sites and national providers of online classified ads. While some newspaper companies such as Tribune Co. have partnered with others to stay competitive (in the case of Tribune, it's a joint venture with America Online to develop Digital City), many newspapers have yet to take full advantage of the potential for online classifieds.

Copyright November 1996, Crain Communications Inc.

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