Staci at PaidContent has some positive news for newspapers worrying about the loss of classified advertising. The San Diego Union-Tribune's free classified experiment seems to be paying off.

About three months ago, the Union-Tribune began offering readers free three-line ads for merchandise below $5,000. Until now, "Call volume is up 27 percent compared to the weekly average for the year, private-party ad placement is up 160 percent and online-placed ads are up 435 percent."

Scott Whitley, the daily's ad director, said the company "realized we needed to do something out of character for newspapers and the results prove the attention-getting effort has been a success. The fact that the number of ads placed via the Internet has skyrocketed proves that we are attracting an audience more comfortable doing business online - most likely a younger audience. We feel it is vital for newspapers to use ad content to grow readership.

Staci doesn't sound as optimistic. She asks, "Are the ads actually translating to readership beyond the classifieds or to real money? Are 90 days enough to be a real success?"

Furthermore, the Union-Tribune allows only three lines of text for seven days. Free classified sites such as Craigslist allow an almost unlimited amount of text with picture capabilities for as long as a user wants to keep the ad active. Which business plan do you think sounds more attractive to consumers?

Source: PaidContent