Report: Google to Dominate Online Classifieds

Posted on December 13, 2005

A new report from Classified Intelligence says Google's new Google Base service is a serious threat to the growing Internet classifieds industry. Classified Intelligence founder Peter M. Zollman says Google Base could get bigger than Craigslist and eBay.

"Google Base could soon become the largest free-classified service anywhere, eclipsing even Craigslist and EBay's services," said Classified Intelligence founder Peter M. Zollman. "It's the biggest threat yet to established classified businesses, both print and online."

Google Base launched last month as a free service that allows people to post ads for items, job listings, personals and other content. Classified Intelligence also considers Google Base a threat to job services like Monster.com and real estate services like Realtor.com.

The report notes that most classified advertising publishers, including newspapers and online leaders like Monster.com and Realtor.com, follow the traditional pay-for-placement model, but Google is providing free listings and plans to make money through paid ads placed alongside the free content and through upgrade sales to advertisers.
The report examines Google's strategies and potential problems in the classified field, and outlines ways more traditional publishers have to strengthen their classified services to remain competitive.
"Google is being disingenuous, at best, when it claims Google Base isn't targeting classified advertising," Zollman said. "It's making a strong push into classifieds, as we show in this report. The company should be more honest about its plans, both with potential partners and the public. Microsoft, at least, has been straightforward about its 'Fremont' classifieds project."

Google Base also has a blog to help you keep up with its new service.