The Hidden Dynamics Of Print?online Competition In Classified Advertising Markets

Classified advertisements are an important revenue source for newspaper publishers and they constitute a large share of non-editorial content, highly valued by readers. By matching supply and demand in the corresponding markets for goods and services, publishers of classified advertisements serve as information brokers increasing transparency and driving market clearance.

These days specific online services for each category of classified advertisements promise a far more efficient matching mechanism at a lower price and compete with the incumbent print players. With reference from different sources such as IAMAI report and other research company an empirical analysis of classified advertisements in the categories of recruitment, real estate and automotive, based on data from India result to tremendous growth in internet classified business.

The substitution dynamics hidden by fluctuating overall market developments are derived from a simultaneous fit of the market dependence of advertising space in newspapers and a time-dependent substitution term. The results show that approximately half of the classified print advertisements have already migrated to online players. However, this substitution seems to have reached at least a temporary saturation. Apparently, the so-called Riepl's ?law?, formulated at the beginning of the twentieth century, still holds true today. This ?law? states that once a specific technical medium has established itself in social practices it will exhibit a strong resistance to change.

Job Portals such as Naukri.com and monster.com does not seem to have threat from print media as presumed earlier. Timesjobs.com having a strong backup of print media could not shake the online market. Online players have their own kingdom to rule, shaadi.com, bharatmatrimony.com, jeevansaathi.com and timesmatri.com have their own story. Shaadi and Bharatmatrimony fighting hard to win the market but again here the print media don?t make much of difference to uplift timesmatri.com in online matrimonial classified business. Realestate portal just started in India and picked up the market soon has players such as 99acres.com, realacres.com, indiaproperty.com, persquareyard.com and magicbricks.com. Persquareyard.com and magicbricks.com has supporting print classifieds sections Sulekha and Times of India respectively but again the online market did not move down due to the print media presence.

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