
Uh, Oh....Lucy - Google Classifieds Coming to a Local Newspaper Market Soon?
So, if you are a newspaper “new media” person you are feeling a bit anxious today.
The lion-share of any newspaper new media revenue is classified move-over money from the printed product. I don't care how you spin it, it is. (Just ask any print classified Ad manager. Ask them about how they feel when the new media ad manager gets a big pay day just because her MBO is based on revenue that is coming her way not because she's particularly bright, but because she happened to be standing in the right place in the road when the migration from print classified ads started flowing in her direction.)
Now, it appears, the flow may start moving in a new direction entirely.
If Google really does get into the game of local, online classifieds, game over for newspaper web sites as profitable enterprise.
Why? Well, look at something like cars.com for example. This is an Internet "pure-play" owned in big part by newspaper companies. (I love the irony there)
Newspapers sell this solution to local car dealers. This is where ALL the newspaper's local auto classified ads are posted online. This creates a, keyword searchable marketplace for auto dealers to draw leads from their local markets.
Here's the rub...most of those leads are generated through search engine traffic. Search engines exactly like Google.
Yahoo! partnered with AutoTrader.com a while back. A nice fit it appears. One has the traffic, the other the relationships with the dealers. Nice.
However, with Google it appears unlikely a partnership with one vendor or even all vendors is likely to happen. Google just does not need a partner.
Why? If they really do have up to 60% of all searches (and most seem to agree they do) and it is obvious they need no one's help with the technology of key word search, the only think missing is dealer relationships.
Auto Dealers will go where the eyeballs are.
Ask most dealers and they will tell you they really despise the stranglehold they perceive the newspapers to have on them. Kind of a “sleeping with the enemy” relationship. (Again, ironic. Most newspapers are scared to death they are losing the dealers. Not to mention new home builders, real estate and the already lost employment category which is never coming back...) They will tell you newspaper companies charge them more every year for less. Less distribution. Less readership. Less return on those Ad dollars.
If a dealer or an employer or real estate broker or new home builder, can be shown that Google is a replacement for their newspaper Ad buys, they will flip faster than you can say “O% down on approved credit.”
This is going to me amazing...if it is happening. I guess We'll see.