classified advertising for newspapers

In America Craigslist has pretty much destroyed classified advertising for newspapers (and with newspapers much of their business model).

losing circulation and revenue

But newspapers started losing circulation and revenue long before Craigslist.”

significant ad revenues

The business models of each sector have substantial differences, and the reasons for their struggles vary — newspapers, for example, lost significant ad revenues to web sites like Craigslist.

of revenue from classifieds

Craigslist delivered the first blow, depriving the press of revenue from classifieds, and then Google and Facebook came along and sucked up the vast majority of online ad spend.

$5 billion

Researchers eventually estimated that Craigslist had drained $5 billion from American newspapers over a seven-year period.

the newspaper business

the newspaper business was Craigslist that ruined the newspaper business as a business.

about $5 billion in classified advertising revenue

According to a 2012 study by Robert Seamans, an associate professor at New York University’s Stern School of Business, and Feng Zhu, an associate professor at Harvard Business School, newspapers lost about $5 billion in classified advertising revenue to Craigslist from 2000 to 2007.

on newspapers’ degree of reliance on classifieds at the time of Craigslist’s entry into their markets

The Impact of Craigslist on Local Newspapers, the study explored the dynamics at play over the period 2000-2007, focusing on newspapers’ degree of reliance on classifieds at the time of Craigslist’s entry into their markets.

the advertising lifeblood

Craigslist drains the advertising lifeblood from local newspapers, and local libraries reinvent themselves after the web puts the world in your pocket.

for their own business model problems

A few years ago, newspapers were all blaming Craigslist for their own business model problems.

a dent

But craigslist ’s certainly putting a dent in those areas where newspapers traditionally dominated.

this lucrative revenue stream

With the introduction of cheaper alternatives, like Craigslist, newspapers lost this lucrative revenue stream.

the majority of the majority's classified advertising – once a huge revenue source –

As for advertising, the newspaper business long ago lost the majority of the majority's classified advertising – once a huge revenue source – to sites like Craigslist and various real estate and auto sites.

classified advertising, which was the newspaper industry’s profit cornerstone

Meanwhile the advent of Craigslist decimated classified advertising, which was the newspaper industry’s profit cornerstone.

one of the main challenges an industry encounters

More significantly, Craigslist’s effect on newspapers highlights one of the main challenges an industry encounters when a disruptive technology upsets its market: Not only is the core business broadsided by the fact that the fact's product becomes available at a lower cost, but the task of identifying the emerging competition becomes strategically daunting.

of Craigslist hurt newspapers

Some people might think a creation of Craigslist hurt newspapers, for example, by killing off classifieds.

the classified ad business

For example, many believe that newspapers have lost the classified ad business to Craigslist.

their classified sections

Newspapers, for instance, are slowly surrendering their classified sections to Craigslist and the ability to scoop news to blogs.

money

Craigslist 'took' money from newspapers and largely returned newspapers to consumers, in the form of lower rates for ads.