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Google Looking at Classifieds Business

Google has asked classified-advertising sites for direct feeds of their listings, according to Classified Intelligence Report, writes paidContent, which quotes CIR analyst John Zappe: "Commercial classifieds sites such as CareerBuilder, Cars.com and others have to weigh the additional audience Google could deliver against the potential loss of revenue. Analysts, including us, predict that advertisers will move to free sites if they become convinced that they will reach an audience as large - or larger - on a search engine than on a paid advertising site."

Recruitment site CareerBuilder is in discussions with Google, Zappe wrote in a research note on Tuesday; Adicio, a provider of software that powers newspaper job sites, told him that it was talking with affiliates to determine a response to Google, writes InternetNews. A Google spokesperson said he couldn't confirm speculation.

CIR Editorial Director Jim Townsend told InternetNews that Google's move would certainly change the classifiedsd game. On the one hand, search would provide additional distribution of the ad; on the other, ads that are freely available through search could destroy the pricing model used by print and online classifieds publishers.

Townsend said that the online classifieds industry would likely move from the pay-for-listing model to a pay-for-performance one: Instead of charging for posting ads, sites would get paid only if when someone clicks on the ad.

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Related stories: - Monster: We'll Vie with Newspaper Classifieds - Classifieds to Drive Local Online Ad Growth to $3.2B - Yahoo Now Offering Jobs Search - Papers Might Lose Billions in Classifieds to Online

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