Bye Bye, Classifieds

Rob Hof

This should be scary for newspapers, if they aren't scared already. McKinsey consultants Luis Ubinas and Jochen Heck warn (free registration required) that newspapers could lose $4 billion, or 20% of their classified ads, by 2007. And the problem isn't just sites such as Craiglist, which has vaporized up to $65 million of help-wanted ads in the San Francisco Bay Area alone. It's that prices for these highly lucrative ads are dropping thanks to the online competition.

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