
When it comes to advertising, some people simply forgot about very cheap, but very efficient ads — Online Classified Marketplace. Initially, Classified Marketplace is a special site with the “buy/sell” stuff, but ads can be added there. Classifieds advertising price is low, and some ads are free. However, only a few sites let their users use this no-money function. The biggest and most famous one is Craigslist. It is the USA web-resource, but it has become the international one already, as many people use it to buy things and get their ordered via usual mail services (DHL, for instance).
How do ads on classified pages work?
“Classified” is an intricate term, but it means quite a familiar thing: a classifieds site that collects various offers from both individuals and companies. Classified differs from marketplaces like Amazon in that it does not participate in the transaction — it is a “live” market where people themselves determine the cost of goods depending on supply and demand.
When people start searching for something visiting their favorite online classifieds, they use the search line site option, and besides seeing the offers of people, who are eager to sell their own stuff, they meet ads from different companies and organizations that pop-up sometimes. There is a high probability that at least one of 8–10 users of the site will open ads and read it. A part of these guys will take a decision to use the offer. The most popular classifieds that deal with this type of ads are:
- Craigslist;
- eBay;
- Gumtree;
- Oodle;
- OLX, etc.
How does the market of classifieds work?
There are two types of classifieds: vertical and horizontal. The former work for one market segment — for example, only for real estate — and the latter work for several at once. This path is more difficult since separate teams and resources are needed for development in different segments, but it is more convenient for the user: everything you need is collected on one site. Typically, the basis of the horizontal classification is the announcement by individuals of the sale of consumer goods.
The main asset of classifieds is ads since such platforms have a network effect: with an increase in the number of users, they become larger and more attractive. Classifieds earn on additional services such as a promotion or highlighting ads, advertising and on special services for business. The latter include, for example, a subscription — for a monthly fee, the user can open his store and receive a certain number of ads, depending on the tariff.