Study: Craigslist revenue to climb 23% to $100M

Craigslist, one of the Internet's top sites for classified ads, is thriving as newspapers & other marketing-driven media are reeling from huge revenue losses, according to a report. Launched as an e-mail list in '95, Craigslist's revenue is on pace to rise 23% this year to reach $100M for the first time, based on an analysis by classified ad industry consultants Advanced Interactive Media Group. Many newspaper execs view Craigslist as a nemesis because it doesn't charge for most ads. As Craigslist and scores of other Web sites have offered free or less expensive alternatives, newspapers' total revenue from the classified advertising in print editions has waned from a peak of nearly $20B in 2000 to $10B last year. Meanwhile, Craigslist raked in more revenue from the ad listings it does charge for in major markets. Most of the money comes from help-wanted ads -- another former cash cow for newspapers that's dried up. Craigslist's annual revenue has risen from just $7M in 2003 to $81M 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 $100M this year, predicted the consultants. Employment ad is expected to account for $85M of Craigslist revenue this year. Other paid categories include housing ads (nearly $9M) & adult-only ads (nearly $4M) that's gotten the company into legal trouble with the law. Craigslist has promised to do a better job of screening its adult listings, formerly labeled erotic, to block solicitations for prostitution & other content that may break laws. Over 40% of Craigslist's revenue is expected to be generated from listings in 3 cities -- NY ($17.7M), San Francisco Bay area ($14.4M) & LA ($12.6M). The analysis found paid ads in 19 other of the over 570 cities covered by Craigslist worldwide. If Craigslist charged to place ads in more cities, AIM Group principal Peter Zollman believes it can easily double or triple its revenue. But Craigslist founder Craig Newmark & CEO Jim Buckmaster so far haven't shown interest in maximizing its revenue growth. Although the AIM Group didn't estimate how much Craigslist is making, profit margins are believed to be impressive because it does n