Tag Archives: online

A Web of Classified Ad Rivals Challenges Craigslist

Here’s some great coverage our client OLX got in BusinessWeek right before the holidays.

A Web of Classified Ad Rivals Challenges Craigslist

Globally, upstarts led by OLX move to edge Craigslist out of fast-growing local classified advertising markets and to crack its dominance in the U.S.

By Douglas MacMillan

Fabrice Grinda is bullish on Brazil and betting big on Internet classified ads in South America’s largest country. This year, Grinda’s New York-based company OLX opened an office in São Paulo, hired locals to translate the OLX site into Portuguese, asked top real estate brokers and auto dealers to offer low-priced listings, and recruited an executive from eBay (EBAY) in Latin America.

That approach has worked well for OLX in Mexico, Spain, Portugal, Russia, and a handful of other countries. And in September, OLX became the leading classifieds site in Brazil, surpassing local rival QueBerato in visitors, according to researcher comScore (SCOR). Craigslist, which has come to dominate the U.S. and other markets by charging no fees for most ads, is a distant No. 42 in Brazil, according to comScore. “I would like to think we have a chance to become the Craigslist of the rest of the world,” Grinda says.

Craigslist is a worthy target. Founded in 1995, the popular site for free online listings has almost singlehandedly replaced the classifieds business of print newspapers and now dominates the U.S. online market. Yet critics say Craigslist has done little to innovate, ignoring opportunities to expand through search, social networking, and wireless communication. It’s also been slow to penetrate some developing overseas markets. Internationally. Craigslist is “asleep at the wheel,” says Grinda.

New players are raring to overhaul online classifieds. “Classifieds have gone through two chapters,” says Craig Donato, co-founder and CEO of classifieds startup Oodle. First came newspapers, then Craigslist, he says. “We are focused on the third chapter.” Craigslist declined to make an executive available to comment for this story.

Most of the innovation in classifieds has happened in specific areas such as job postings on Monster (MWW) and real estate listings on Trulia. “Those sites all have a lot of traffic and they co-exist with Craigslist,” says Greg Sterling, founding principal of researcher Sterling Market Intelligence. Jobs are one of the few areas where Craigslist charges a fee for postings. It also charges for New York real estate listings.

No. 2 OLX tries harder with locals

Newcomers find it tough to challenge Craigslist’s array of listings, which range from used Apple (AAPL) iPods, to beachfront properties in Miami, to solicitations for “casual encounters,” often a euphemism for consensual sex.

Still, upstarts are making headway. In 2009, its fourth year, OLX became the world’s second-most-visited online classifieds property, leapfrogging eBay’s Kijiji sites and approaching Craigslist. Co-founder and CEO Grinda says the site encompasses 90 countries and 40 languages, compared with Craigslist’s 70 countries and 6 languages. Unlike the more established site, OLX works hands-on with locals in all its major markets to translate its services and to relate to merchants in the community, Grinda says. Hands-off Craigslist relies mainly on local sellers to post listings. It does next-to-no marketing.

OLX makes money by promoting ads to the top of listings, charging $2 to $10 a week. The company saw its first profit in June and expects more than $10 million in sales this year. “OLX is the leading classifieds site in a bunch of markets that are small today but have the opportunity to be the same size as Craigslist,” says Jeremy Levin, partner in Bessemer Partner Ventures, which contributed to OLX’s $29 million in funding. “When you add them all up you get something that’s substantially larger than the U.S. market and a business that generates—if it is successful—hundreds of millions of dollars in revenue.” This year, Craigslist is expected to bring in $100 million in sales, according to the AIM Group. The closely held company doesn’t report financial figures.

Craigslist’s dated technology also gives rivals a lever, even in the U.S. Oodle, which started in San Mateo, Calif., in 2005, is pursuing what it considers a missed opportunity in connecting classifieds to social relationships on sites such as Facebook. Classifieds are “not about inviting some anonymous person over to my house to test-drive my car,” says Oodle co-founder Donato. “We’re trying to create a different experience, based on trust and reputation.”

Craigslist ads search poorly

Oodle’s approach is best demonstrated on Facebook Marketplace, a classifieds site on the social network. There, Oodle lets users buy and sell items in an environment where people and merchants use real names; users can quickly share good deals with Facebook friends. The company earns revenue by taking bids for prominently placed ads, similar to OLX, and through a subscription service that helps real estate brokers and other professionals find customers. Besides Facebook, Oodle has partnered with Wal-Mart (WMT), AOL, and News Corp.’s (NWS) MySpace. Oodle has raised more than $20 million in funding, including some from Greylock Partners.

Another complaint about Craigslist is that it lacks sophisticated search. Shoppers can’t search within a limited geographic area—say, a tri-state area. Its listings typically don’t get picked up by search engines such as Google (GOOG). San Francisco-based Vast is trying to help online classifieds become more searchable by working with publishers to help users quickly retrieve listings tailored to them. For example, Vast powers the search for cars on the Web site of Kelley Blue Book.

Such online niche sectors as travel, autos, and real estate are already worth at least $1 billion apiece, says Vast CEO Kevin Laws. His company collects most of its money from fees paid by advertisers each time the search engine refers a customer. Some real estate brokers end up sharing a significant percentage—sometimes more than $1,000—upon completion of a sale.

Craigslist’s new competitors may not soon edge out the classifieds king, says Kelsey Group analyst Peter Krasilovsky. Craigslist has the critical mass of millions of users that many upstarts struggle to achieve, he says. In the U.S., the service had 44.1 million unique users in October 2009, up 20% from a year earlier, according to comScore. “There’s no evidence that Craigslist has been cannibalized,” says Krasilovsky, who nevertheless contends there’s room for new players to grow. “There’s more participation in classifieds than there’s ever been before.”

A Web of Classified Ad Rivals Challenges Craigslist

Social Media Promotes Your Business

: Image by luc legay via Flickr

You are not too late to enjoy the benefits of social media — you will never be too late — because the spoils in social media marketing go to the company that can maintain its social media participation over the long haul over the long term. Start now, start later, and I guarantee that if you’re a lion-hearted social media marathoner, you’ll probably best your competition. Anyway, Joseph Ratliff did a brilliant job getting you motivated in How The Social Media Promotes Your Business:

The great thing about social media marketing is it offers a place to talk about your business in a new setting that is a lot less threatening than many other types of advertising. Social media is not about the hard sell. Instead, it focuses on creating relationships with people. Social media allows business people to share some of their personal lives with others. This helps to overcome any fear or reservations connected to buying from people online.

If you’ve started a blog for your business, you already have your foot in the water. The next logical step is to begin commenting on other blogs related to your business. Spend some time searching for a few blogs that you enjoy and subscribe to them via an RSS feeder to manage your time. This will allow you to follow several blogs without having to go to each one every day. When you find a post you can contribute a useful comment to, go to the site and offer your thoughts. Leave a link, if you can, so the audience can link to your own blog. Make this a part of routine at least three times a week.

Next, choose one or two social media communities to join. There are dozens and dozens out there, so do not try to become visible everywhere. Two of the most popular social media communities for business networking are Twitter and Facebook. Both of these are effective sites to increase your relationship building skills with prospects. Combine some personal tidbits with some business information until you discover the perfect mix of both. Do not just focus on building big numbers of friends or followers. It isn’t all about the numbers. Instead, build a little slower and spend your time interacting with the people you meet.

Online Marketing and Online PR Converge

I got trained up in marketing and evolved into PR and there is a convergence going on. Not just between PR and marketing but also with advertising and … SEO (yes, I said it). David Hargreaves of Bitemarks agrees that there is a strong convergence — and so does the originator, Jeremiah Owyang:

Jeremiah Owyang produced an interesting piece earlier today asking what will happen to PR firms in a recession based on research among 200 PR agencies. I must confess I am not surprised to see that a small majority of firms are predicting that PR budgets were smaller than they were in fiscal 2008, but then if you if you look at any operating cost, I would be surprised if this wasn’t pretty much tracking the downward pressure on all operating costs.

Having said that I think cost reductions fall into two categories: reducing costs because in this climate ‘you can’ and ‘you need to be seen to’ and then there are those companies that are having to reduce costs because ‘they must’. I wonder what if the PR budget reductions are greater or smaller than comparable ad budgets?

I both agree and disagree with the second point Jeremiah makes when he says that “things don’t look too rosy for the PR industry.” If you are a traditional PR agency doing the same old stuff then I would be worried. However, if you accept that the world has changed and embracing social media is neither an option or an add on to your traditional offering then the world looks rosier.

By putting social media at the centre of what we do, we have a fantastic opportunity to extend our remit more broadly into the world of online marketing. Far from being gloomy, as someone who has been involved in the PR industry for 20 years and who has always embraced technology, the future for the industry has never been more exciting.

SEO Strategies Aren’t Either Or But Both

Nick from Search Engine Optimization Journal says it short, sweet, and right on, Is Organic SEO Really Your Best Option?

For years SEO practitioners have been proclaiming the virtues of organic SEO. It’s free. It’s easy. It’s not PPC. Etc. By the same token, PPC experts have been signing the praises of PPC – it’s fast, it’s dynamic, it’s targeted traffic, and it’s not organic SEO. Does it really matter?

Personally, I think that your Internet marketing efforts should all work together. It’s not a matter of SEO vs. PPC. It’s more a matter of whether or not you are targeting your traffic through the tools that are available to you, and organic SEO is one tool at your disposal. And it’s a valuable tool.

Organic SEO is about targeting the keywords that are important to your business and achieving business results for your targeting efforts. There’s more to it than simply picking keywords out of a vacuum and throwing them against the wall. The idea is to target the keywords that searchers looking for a service or product like yours would use to find it. If you can identify the keywords that the market thrives on then you can drive traffic to your website. You can do this through organic SEO and PPC as well as through other avenues.

The only thing I might add is the power of digital PR, blogger outreach, and online engagement to help out your war of search placement; otherwise, this is the best I have read in quite a while.

This is not a game of panaceas, it is a game of content-creation, site architecture, organic SEO strategies, PPC, and all the rest, over time. SEO is about consistance, predictability, and is much more of a war than it is a battle.

Mind you, try not too lose to many battles along the way.

Sage Advice to a PR Professional of Tomorrow

Earlier this week, I guest lectured on digital PR at the American University and reported on the experience, Public Relations and Communications’ Future is Bright!. I said that I would not write anything nice unless someone sent me a thoughtful email from the class.

Well, I received two nice notes, one from Juliana Serafini (who promises to email me again next week) and one from Kari Elam, who had a lot of great question. I will not expose her questions, but the long story short is that Kari is writing for music, culture, arts, and society blogs and wonders if that it good enough as a way of writing herself into a smashing agency job in PR and I told her that while it couldn’t hurt, it is also essential for her to go a little further.

Well, here is the ‘sage’ advice I give to Kari: Kari, what you’re doing for your current blogs is more editorial writing. While editorial and column-writing might very well help you with a publishing career in the future — and doesn’t hurt your portfolio — I must underscore the fact that while blogging about music — being a blogger — is super-important when it comes to being a respected part of the community — the “who the hell are you?” factor, there is another more important blogging strategy to pursue if you want to end up in a top-ten national PR firm.

What you need to do, in addition to blogging is “meta blogging,” — blogging about social media, about digital PR, about public relations, about advertising, etc… It is really important to make sure you’re always taking a step back and think not only about the what of social media but also about the why and how.

What this could look like is a blog about your studies of PR at AU and what you’re learning and how it contrasts with what you’re learning at your PR Internship. If you’re interested in music, society, the arts, and culture, explore it in the context of the Internet, of online branding, ads, Twitter, Facebook, MySpace, and even television and radio. How do you see what you’re learning about traditional PR dovetailing into social media marketing and digital PR? Can you see a continuum? Can you maybe help the fogies of traditional PR find their way to digital PR? If you can light the path and maybe even map the way, you’re golden. Move to NYC and start shopping for apartments, you’ll be on Madison Avenue in no time.

However, don’t forget the basics. As a PR consultant, you will be required to know how to not simply consume content (read blogs), not only produce content (blog), but analyze and understand how to conversation works, how best to leverage and participate in conversation, and also how best to manage conversation and manage reputation. Being a PR professional is about knowing how things work behind the curtain. And, since you are young and “cyber,” people assume that you have a valuable and important insight into the future.

PR firms are beginning to realize that “all kids get the Internet” may be true, but not in the way they thought — that “kids” get the Internet with only the level of sophistication that people from 35-50 get television — as a source of entertainment and information.

So, it is your job to publicly and prove, on a daily basis, on a blog, that you get what’s going on, that you’re current with the movers and shakers, that you have a passion for that space, and also that you will be able to prevent the future from blindsiding your PR VP and your client by keeping on top of technology, social media, new PR, and new and important channels through which you need to use to promote and protect your clients.

Your music blogging and your trend blogging and your other blogging means that you can now think like a blogger and that you’re accepted into the blogosphere — which is an important first step. The second step is proving you can strategically and even tactically make the Internet work for your clients and your agency.

Not to insult us marketing, advertising, and PR bloggers and blogs but there is a lot of room in the Power 150 for more voices, that’s for sure. If you start today, you may very well shoot up the list. A new voice is always welcome. Also, don’t be intimidated by what this sort of blogging means. You don’t have to act out of your focus. Take what you already love and then just spend some time getting meta on it — spend some time playing. Spend some time taking the articles you’re writing elsewhere and slice them and dice them a little academically. Do things like create your own case studies and give away the sort of campaigns you might recommend yourself. Feel free to critique or compliment campaigns and brands and firms and agencies — especially the ones you’d like to work with.

I swear to God, you can write yourself into this business. You can write yourself into a very fine career as a PR professional. You’re good as gold if you can prove that you’re both someone who has been trained in traditional PR and who gets digital PR; that you’re someone who gets both theoretical social media as well as practical social media.

And, good luck to you, Kari!

Via Chris Abraham

Advice to a PR Professional of Tomorrow

And, good luck to you, Kari!

An Interview with Martin Oetting of Germany's trnd

Cross-posted on SocialMedia.biz — As part of my exploration of branding and communication around the world, I am starting a series of interviews with as many European and world-wide movers-and-shakers as are willing to submit themselves to my barrage of probing questions.

I was inspired to start this series of interviews while at lunch with today’s interviewee, Martin Oetting, partner and director research at trnd. We met at a bistro in Prenzlauer Berg, a trendy neighborhood in Berlin, where Martin lives. We ate and talked and realized we had both a lot of thing and a lot of people in common. After we both pedaled away on our bikes, it occurred to me that it would be super cool to be able to share all of this great stuff with you – and it would be great to be able to ask a bunch of questions to as many people in the branding, new media, and communications as possible.

With no further ado, here’s my interview with Martin Oetting:

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Is email marketing still relevant in a 2.0 world?

When I realized that I could download the OPML file from the Power 150 site and then hack it around into a contact list of over 900 of the top advertising, marketing, PR, and SEO bloggers on the planet, I did so.

Ever since, I have been scheduling calls with all of the folks I have been admiring on a daily basis. Two days ago I spent an hour on the horn with Lee Hopkins, “one of Australia’s leading thinkers on communication strategy in an online environment,” who is, in fact, one of the World’s leading thinkers on communication strategy in an online environment. We had a great chat — and amazing talk!

At the end, Lee asked me if he could blog the conversation and I jumped at the opportunity and late last night Lee published Is email marketing still relevant in a 2.0 world? which is not only the most complete description of what we at Abraham Harrison LLC do on a daily basis but it is said in a better, more comprehensive, way than I could even conceive of doing myself. Here it is, in full. Be sure to visit (and subscribe to) Better Communication Results, Lee Hopkin’s blog.

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Lee Hopkins on Email Marketing in Digital PR

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Using Directories for SERM and ORM

I think you should check out Michael Gray new article, Using Directories for Search Engine Reputation Management, because it is a very interesting article — essential reading — I have only excerpted a wee bit of it here because I think you need to go over there and spend some time with the article, which is really valuable and essential as a way of inoculating your brand in advance of anything going wrong.

Search engine reputation management (SERM) is a growing discipline under the larger umbrella of search engine optimization (SEO). If you deal with client services, and you don’t already have at least one reputation management client, chances are you will in the very near future. The more tools or options you have at your disposal for this type of project, the easier the task will be. In this article I’m going to look at one of those tools; directories. (via Marketing Pilgrim)

I think it is really important for me to start writing more on this topic. I have written a few things on this topic: I, Online Reputation Manager, The Powerful SEO Benefits of Blogger PR Outreach, An El Al Jumbo Jets Chaffing and Flaring the Skies Analogy, Online Reputation Defense: Resistance is Futile, Online Reputation Management, and Online Reputation Management Needs to Be Proactive. Via Marketing Pilgrim and Chris Abraham.