Thursday, 18 November 2010 20:48
European publishers, rushing to develop ever glossier applications for Apple Inc.’s iPad, are turning to an old-fashioned prop for growth: the classified ad.
Hit by falling circulation as readers increasingly get their information from the Internet, publishers of newspapers and magazines are buying up online classified-ad sites, mostly for real estate, jobs and cars. The moves are aimed at regaining ground in an advertising market they once dominated and that has been taken over by websites where posts can be placed for free.
“The motivation to develop online classifieds is very strong,” said Alex DeGroote, a media analyst at Panmure Gordon in London. “Traditionally, classifieds were what supported the journalism.”
Germany’s Axel Springer AG, whose publications include “Bild” and “Die Welt,” and Norway’s Schibsted ASA, which puts out “Aftenposten” and “Dagens Medisin,” are among companies that have been on the prowl for such classified sites.