Continued contempt for Craigslist: newspapers regret
It is pretty universally accepted that the free classified advertising website Craigslist has newspaper executives cowering in fear. However, the tone of a Wall Street Journal column in which editorial board member Brian M. Carney chats with Jim Buckmaster, CEO, CFO, and COO of Craigslist, you might think that those executives are instead fuming in regret, regret that the didn't come up with the ideas themselves.
After spending a relaxed Sunday afternoon with Buckmaster, the financial daily's journalist can't seem to figure out why the world's 7th most popular Internet destination is not maximizing on its popularity for profit. A simple addition of banner ads to the plain lists from Craig would by some estimations spike the site's profits 20 times.
As interviews with the Craigslist team go, WSJ's is standard, notably when the discussion turns to the havoc the site is wreaking on the newspaper industry, ("Are those guys communists? Do they hate newspapers?"... Buckmaster suggests that newspapers escape the profit pressures of Wall Street and get back to what they're meant to do; serve their communities).
But even after Buckmaster takes the time to drive Carney back to his San Francisco hotel, the WSJ correspondent ponders somewhat cynically, "If...Craigslist doesn't need or seem to want all the ad revenue it declines to collect, maybe we, as end-users, should ask them to post some banner ads and give us (end-users) the money instead."
Although Carney closes by admitting this reasoning is wrong, why didn't he use the words to suggest something constructive for newspapers such as, why don't newspapers adopt a similar classified ad model?
The fact is, as seen with Craig, if you don't do it, somebody else will. So what's to stop any idiot with decent server capacity to start a Craigslist-like site for his or her own community. Before you could say "missed opportunities," this individual could steal a local newspaper's classified and personal business, not to mention begin soliciting local advertisers to divert their resources to the site, draining newspaper finances even further.
If Craigslist could boost its profit 20 times just by putting up some ads, why aren't local papers mimicking Craig's free classified idea but with the addition of local ads?
If they want to hold on to any portion of the still lucrative classified market, local papers had better do so quickly. Last week Craigslist launched in 100 more cities and is certain to keep growing unless more local ventures can provide an even better service for their immediate communities.
Source: Wall Street Journal
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Free has its drawbacks. Free means no responsibility, which is why the authorities are now on the backs of Craigslist for some of the adult materials posted on it. But then again, it could be that Craigslist is trying to use this opportunity to end their free period and finally rear its fangs after gathering the masses with gossips & event notices.
I think people should pay for what they post. Already the internet is full of irresponsible statements.
Try this at piref.com.
http://www.piref.com
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