Cashing in: Broadcasters turn the channel to classified ads

New Study from Classified Intelligence shows TV, radio and cable Web sites embracing classified advertising

Classified advertising, once the mainstay of daily newspapers, is rapidly and steadily growing on TV, radio and cable Web sites and on cable digital services, a new report states.

Television station Web sites in all top 50 U.S. markets offer classifieds, as do radio sites in 47 of the top 50 markets and four out of five of the top MSO cable systems, Classified Intelligence reported today.

In a 61-page report, ìBroadcasters and classifieds: Major growth in major markets,î Classified Intelligence found advertising for cars, homes, jobs and merchandise is available from TV, radio stations and many large cable operators. The free report ñdownloadable from ClassifiedIntelligence.com ñ also reviews classified advertising by broadcasters in Canada, Australia, Germany, the U.K. and other markets.

ìClassified revenue is critical to newspapersí survival, but free classifieds from sites like Craigslist, combined with classifieds offered by broadcasters and cable companies make it even more difficult for newspapers to maintain their dominance of this category,î said Peter M. Zollman, founding principal of CI. ìBroadcasters and cable companies see classifieds as a very bright spot in their business plans ñ a new revenue opportunity with little downside risk.

ìBy offering classifieds, broadcasters and cable companies can create significant ties to local markets that strengthen their Web sites, enhance their revenue and connection with advertisers, and allow them to penetrate new fields like real estate and recruitment that until now have been primarily a newspaper business.î

TV, radio and cable bring an added dimension to classified ads. Using their airtime, stations featured classifieds in promos that drive traffic to their Web sites, turning viewers into visitors. Many offer video clips as part of their classifieds, and cable offers ìclassifieds on demand.î

Classified Intelligence based its report on reviews of more than 400 TV station Web sites and more than 150 radio sites, and a survey of the top five cable multiple system operators. The research was sponsored by CityXpress, a Vancouver-based company that offers classified advertising services to newspapers, broadcasters and other businesses.