craigslist's revenue for 2009 is estimated at more than $100 million, according to a study from Classified Intelligence Report, a publication of Orlando-based web consultant AIM Group, via the New York Times.
The San Francisco-based online classified ads company, which promotes itself as non-profit oriented and service minded, seems to be doing well. The figures show a 23% increase compared to estimates for 2008 and a huge increase since 2004, when revenues were projected at $9 million.
By contrast, classified advertising in newspapers in the United States had its worst ever drop (down 29%) last year, according to the Newspaper Association of America.
In typical manner, craigslist declined to comment on the study. The firm did not project profits. With just 30 employees, the company keeps its expenses in check.
The popular web destination allows people and companies to post free classified online ads in 570 cities around the world. In 18 major American cities, the company charges a flat fee of $25 ($75 in San Francisco) for recruitment ads. In New York, real estate brokers pay $10 to post individual listings for apartments and houses.
craigslist also charges for ads in its erotic services category, renamed "adult services" after state attorneys general decided the category had become a marketplace for prostitution and forced the company to take measures to monitor the postings. craigslist reportedly donated money made from that category to charity.
Over 80% of craigslist revenue comes from recruitment ads, and most of the remainder from housing ads in New York. Its most lucrative markets are New York City (an estimated $17.7 million in 2009), and San Francisco ($14.4 million), the study said.
eBay owns 24% of craigslist, and the two companies sued each other last year over corporate governance issues. The trial is scheduled later this month.
A recent study found that nearly half (49%) of global online adults used online classified ads at some point - compared to 2005, when 22% of online adults had used them. On any given day, one-tenth of online users (9%) visit an online classified site, up from 4% in '05.
