The Wall Street Journal today wrote an ominous story about one of the underlying causes for the newspaper crisis: the flight of classified ads from traditional print outlets to online competition such as CraigsList.
The nut grafs:
Last March, Baylor Health Care System, a large Dallas-based nonprofit, began purchasing keywords on Google, Yahoo and employment-related search engines SimplyHired.com and Indeed.com. The search-engine ads generated more applicants, at less cost, than the other recruiting methods, says Eileen Bouthillet, director of human resources communications.
In the first six months of the program, Ms. Bouthillet says, the search-engine ads delivered 5,250 applicants, at an average cost of $4. By contrast, Baylor paid an average of $30 for each of the 3,125 applicants who came via job boards, and $750 each for the 215 applicants who replied to a newspaper or magazine ad.
UPS says it received more than 150,000 applications from the campaign, at an average cost 75% to 80% cheaper than print ads. “We’re cutting newsprint wherever we can and trying to move more to online media,” says Matthew Lavery, corporate work-force planning manager. “Google is outperforming other online media.”