The thing about ad revenue in the information age is that it's a pittance compared to what newspapers used to pull in. Classified ads were a major revenue sourc

The thing about ad revenue in the information age is that it's a pittance compared to what newspapers used to pull in. Classified ads were a major revenue source of revenue for newspapers. Craigslist has cannibalized that business. Craiglist has cost the newspaper industry billions of dollars[1] and made millions in return.[2] Here's a 2009 article:[3] "Many newspaper executives view Craigslist as a nemesis because it doesn't charge for most ads. As Craigslist and scores of other websites have offered free or less expensive alternatives, newspapers' total revenue from the classified advertising in print editions has waned from a peak of nearly $20 billion in 2000 to about $10 billion last year. Meanwhile, Craigslist has been raking in more revenue from the ad listings that it does charge for in major U.S. markets. Most of the money comes from help-wanted ads — another former cash cow for newspapers that has been drying up. Craigslist's annual revenue has risen from just $7 million in 2003 to $81 million last year, according to the AIM Group. Based on its count of paid ads appearing on Craigslist in recent months, the company's revenue should be about $100 million this year, the consultants predicted." Craigslist is that whole "your margin is my opportunity" thing everyone loves to throw around. Craigslist took over the market because they charged less than anyone else, and they could charge less because their margin on classified ads was lower than anybody's. Newspapers couldn't compete with Craigslist on margins because they were using those margins to subsidize the actual news-gathering apparatus, which was a loss leader to get people to buy the paper so they could put ads in it. 1) http://www.reuters.com/article/2013/08/13/ny-nyu-stern-school-idUSnBw135869a+100+BSW20130813 http://www.reuters.com/article/2013/08/13/ny-nyu-stern-schoo... 2) http://aimgroup.com/2012/11/07/craigslist-2012-revenues-increase-9-7-big-four-battle-for-global-classified-lead/ http://aimgroup.com/2012/11/07/craigslist-2012-revenues-incr... 3) http://abcnews.go.com/Technology/story?id=7804695 http://abcnews.go.com/Technology/story?id=7804695