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Classified Platform Market Segmented By models such as Horizontal Model and Vertical Model.
In the past, classified ads were part of newspapers which offered advertisers cheap, small type notices arranged under specific categories. The media industry has witnessed switch from print media to digital media and has proven itself quite lucrative for classified platform players. Growing number of sites are providing specialized classified marketplaces online catering to niche categories including products and services such as boats, pianos, pets, and adult services. Classified platforms market includes both business to consumer (B2C) and consumer to consumer (C2C) categories.
Despite of several advancements in the online classified platforms, the market is currently at a nascent stage due to large of consumers spending time on the print media; however, with increasing internet subscribers and growing number of subscribers on social media, the market for online classified platform is expected to hold promising revenue opportunity during the forecast period.
Online advertising of a particular product or service through classified platforms enables consumer to explore and compare a particular product or service in a better way than print advertising. Few of the classified platforms also provides 360 degree view of products which enables consumers to better understand the dimension and esthetics of a product, thereby enhancing consumers’ experience. Moreover, with the proliferation of business applications on mobile platforms, classified ads platforms is providing greater opportunity to both buyers and sellers in terms of saving time and cost.
As classified advertisement platforms do not charge for posting an advertisement, few of the classified platform websites displays clutter of information and lack of genuine content. This is acting as a challenge for classified platforms market. Leading players in this market need to focus on building intelligent processes in order to have genuine content without comprising scale of their business.
This model offers a wide range of categories such as mobiles, electronics & accessories, cars, bikes, furniture, pets, books, fashion, jobs, real estate, and home services. Although, horizontal players are capable enough to drive large audience base on their platforms, they often lack specialized product offering.
Vertical model focuses on single categories such as cars and real estate. Usually these kind of business models charge consumers to for listing their products on the platforms. Vertical model comprises advertisements of all the entities in the ecosystem of a particular industry.
Countries in Europe region such as France and Norway are witnessing increasing popularity for horizontal classified model. Most of the consumer in the Europe are using classified platforms for searching second hand merchandise across a range of categories. Countries such as U.K and Germany have witnessed increased popularity for online classified with vertical business models.
In the North America and Latin America regions, the market of online classified is yet to go as a mainstream business. Few of the enterprises in the countries such as the U.S. and Brazil, prefer advertising their product or service on print media as against online digital media.
Although overall e-commerce market in Asia-Pacific region is booming, online classified platform market is witnessing moderate growth. In countries such as China and India, the online classified ad penetration is low, primarily due to presence of this platforms in only tier 1 and tier 2 cities.
Craigslist Inc., Finn.no, Gumtree (ebay), Quikr India Private Limited (Commonfloor.com), OLX, Inc., Rightmove plc, Backpage.com are some of the key player of global classified platform market.