Craigslist predicted to post revenue of $100 million
Posted by Simon Day on June 10, 2009 at 9:59 AM
Online classified ad site Craigslist is forecast to earn more than US$100 million in revenue for 2009, according to a new Classified Intelligence report, published by AIM Group, a media and Web consultant firm in Orlando, Fla, The New York Times reported Tuesday.
This revenue estimate is a 23 percent increase from 2008 and giant jump from 2004 when the site earned about $9 million.
This revenue estimate is a 23 percent increase from 2008 and giant jump from 2004 when the site earned about $9 million.
"This is a down-market for just about everyone else but Craigslist," said Jim Townsend, editorial director of AIM Group, according to The Times.
The survey predicts annual earning by counting the number of paid ads on the site for a month and extrapolating a 12-month figure. The firm said its projections were conservative. Conversely, newspaper classified advertising in the U.S. dropped by 29 percent, the largest decline in history, according to the Newspaper Association of America.
The San Francisco based company, which promotes its "relatively noncommercial nature" and "service mission," refused comment on the study. "We are a privately held company and never comment on guesses of our revenue. Nor have we ever commented on any number bandied around in the past," said Susan MacTavish Best, a Craigslist spokeswoman, according to the Times.
Craiglist, which has just 30 employees, provides free private and commercial classified advertising in 570 cities worldwide. However, in 18 U.S. cities recruiters are charged $25, and in San Francisco $75, for help-wanted advertisements. In New York, real estate agents are charged $10 for each individual apartment and housing ad. The company also derives income by charging for listings in its adult services category.
The survey predicted that more than 80 percent of the company's income was derived from the recruitment advertising. The most profitable markets were New York City with an estimated revenue production of $17.7 million followed by San Francisco with $14.4 million, AIM Group said, according to The Times.
The survey predicts annual earning by counting the number of paid ads on the site for a month and extrapolating a 12-month figure. The firm said its projections were conservative. Conversely, newspaper classified advertising in the U.S. dropped by 29 percent, the largest decline in history, according to the Newspaper Association of America.
The San Francisco based company, which promotes its "relatively noncommercial nature" and "service mission," refused comment on the study. "We are a privately held company and never comment on guesses of our revenue. Nor have we ever commented on any number bandied around in the past," said Susan MacTavish Best, a Craigslist spokeswoman, according to the Times.
Craiglist, which has just 30 employees, provides free private and commercial classified advertising in 570 cities worldwide. However, in 18 U.S. cities recruiters are charged $25, and in San Francisco $75, for help-wanted advertisements. In New York, real estate agents are charged $10 for each individual apartment and housing ad. The company also derives income by charging for listings in its adult services category.
The survey predicted that more than 80 percent of the company's income was derived from the recruitment advertising. The most profitable markets were New York City with an estimated revenue production of $17.7 million followed by San Francisco with $14.4 million, AIM Group said, according to The Times.
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