As reported in this story at Poynter.org, the giant eBay corporation has bought the UK Gumtree classified business along with some others. sBay last year acquired 25% of craigslist – the category killer in the classified advertising space.
It quotes a report from Classified Intelligence Report publisher Peter M. Zollman. I’ve read his excellent report on the craigslist advertising phenomenon and it convinced me that classified advertising in newspapers has no future in its present form and that was before the technology advances of the last year.
Elsewhere here’s I’ve discussed the efforts of newspaper publishers to play in the online advertising space. eBay are growing. Plus there is a plethora of independent sites playing. This has to be good for consumers. What will happen next is playing with the financial models as we saw when the skies opened and airlines were deregulated. New pricing models and new offerings will emerge which make advertisers more powerful.
The businesses not connected with existing media companies will be the ones to watch.