Making a Quiet Splash - Craigslist Projected to Make 100 Million in Revenue for 2009
According to a recent report from Advanced Interactive Media Group, Craigslist - the 'free internet classifieds site' - is poised to break the 100 million dollar mark for 2009. Yes, you read that right, they are projected to surpass 100 million dollars in revenue for 2009. Confused? How can a 'free classifieds' site make that much money with no obvious banner ads or other method of advertising?
I was wondering the same thing. Though the majority of the classified ads on the site are free, there are several types of ads that craigslist does charge for: help wanted, housing, and "adult." A recent article from the San Francisco Chronicle reports that the majority of their revenue comes from the $25 they charge for help wanted ads ($75 for the same ad in San Francisco).
The genius here is running a site that appears like a free service to the majority of web surfers, yet, charges for a small percent of the ads on their site. So what do advertisers get for their $25? Traffic, and lots of it - 20 Billion page views and 50 million users each month, across all craigslist sites. Not too bad of a deal for the advertisers. The real surprise here is the sheer volume of advertisements it takes to generate 100 million dollars. That is a whole lot of help wanted!
I was wondering the same thing. Though the majority of the classified ads on the site are free, there are several types of ads that craigslist does charge for: help wanted, housing, and "adult." A recent article from the San Francisco Chronicle reports that the majority of their revenue comes from the $25 they charge for help wanted ads ($75 for the same ad in San Francisco).
The genius here is running a site that appears like a free service to the majority of web surfers, yet, charges for a small percent of the ads on their site. So what do advertisers get for their $25? Traffic, and lots of it - 20 Billion page views and 50 million users each month, across all craigslist sites. Not too bad of a deal for the advertisers. The real surprise here is the sheer volume of advertisements it takes to generate 100 million dollars. That is a whole lot of help wanted!
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