The Newspaper Association of America estimates $4.6 billion in
spending on employment classified ads in daily and Sunday newspapers
in 2004 (http://www.strategiy.com/anews.asp?id=20050305031759 ), 27.7%
of the total of $16.6 billion spent on all classifieds.
The Kelsey group estimates 2004 revenue from U.S. Web classifieds at
$1.95 billion (http://www.xtremerecruiting.org/blog/archives/ss/001382.html),
a number I?ve seen quoted in a number of other places.
A survey by Borrell Associates found that newspaper Web sites
generated 62% of their online-classified revenue from employment ads
(http://www.stateofthemedia.org/2005/narrative_online_economics.asp).
Using that Borrell study as a proxy for the online-classified
industry, we can estimate that 62% of the $1.95 billion, or $1.21
billion, was spent on employment ads.
These percentages (employment ads as 62% of online spending and 27.7%
of print spending) jibe with other commentary on the market, and it is
widely accepted that employment ads have a much larger share of the
online market than of the print market. However these numbers do not
tell the whole story.
Weekly newspapers and other advertising media make up a large
percentage of the market, and are not well documented. Fortunately, we
can extrapolate the overall market size using more NAA data.
According to a story in the NAA?s Prestime magazine,
http://www.naa.org/presstime/PTArtPage.cfm?AID=6651, ?recruitment,
automotive and real estate classified markets are also undergoing
significant structural change. In the employment category, online
recruitment expenditures exceeded $1 billion in 2003 and have grown 22
percent annually since 1999, while online share of total recruitment
advertising has grown to more than 16 percent.?
Assume $1.05 billion in online employment adds in 2003 and 20% growth
in 2004 (overall online ad growth is choppy from year to year, and
expected to slow somewhat this year), and you get $1.26 billion in
online classifieds in 2004, very close to the Borrell estimate. That
suggests the NAA?s numbers are pretty good.
Then we bring to bear the final piece of data: The NAA?s estimate of
the Internet?s 16%-plus share of total employment advertising. If
$1.26 billion is 16.5% of the market, then the total market represents
$7.64 billion in spending.
Using the statistics gathered above, I have collected the following numbers:
2004 employment-ad spending:
Daily and Sunday newspapers: $4.6 billion.
Online classifieds: $1.21 to $1.26 billion.
All other media: about $1.8 billion.
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