Google Base called "biggest threat yet" to classified ad industry

Altamonte Springs (FL) - Google has radically disrupted the $100-billion a year global classified advertising industry with its launch of classified listing services in the new user-generated Google Base database, a report from Classified Intelligence claims.

In its study "Classifieds.Google.com : Threat ? Or opportunity ?" Classified Intelligence states that along with titan companies like Microsoft and EBay, Google poses an increasing threat to traditional classified advertising publishers that have been dealing with intense new competition ever since the advent of the commercial Internet.

"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."

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.

"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. 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."