As the population throughout the world increases there is a huge increase in service and product bases companies all around the world which has led to the need for a Classified Advertisements Services Market that can manage all the advertising strategies for different companies and can help in the development of the companies. Therefore, the development of the companies is related to the advertisement so that it can reach as many people as required. So, it is necessary for the Classified Advertisements Services Market and would grow in upcoming years with good competition.
Driving factors of the Classified Advertisements Services Market
Several factors are driving the Classified Advertisements Services Market some of them are as follows:
1. Growing demand from small and medium-sized enterprises: SMEs are increasingly relying on classified ads as they offer low-cost, effective marketing opportunities to connect with potential customers. This has resulted in increased demand for these services, driving the market’s growth.
2. Rise of mobile devices: The proliferation of mobile devices has made it easy for consumers to access classified ads anytime, anywhere. This has further boosted the demand for these services, contributing to the market’s growth.
3. Increased focus on online advertising: The shift from traditional media such as print and television to online advertising is increasing investments in digital marketing initiatives, which is driving up the demand for classified ads services.
4. Growing trend of social media marketing: Social media platforms have become an important channel for marketers to reach out to their target audiences and capture new leads. Additionally, campaigns on social media platforms are cost-effective, making them a preferred choice among advertisers, thus driving the growth of this market.
Advantages of the Classified Advertisements Services Market
There are advantages of the Classified Advertisements Services Market some of them are :
1. Cost-Effective: Classified Advertisements Services are very cost-effective and offer great value for money. They are usually cheaper than traditional advertising methods and can be used to target specific audiences.
2. Reach: Classified Ads can reach a very wide audience due to the internet, which is now a global platform for advertising.
3. Flexibility: Classified Ads services are highly flexible, allowing users to easily change or adjust their ads as needed to maximize results.
4. Accuracy: Classified Ads services provide accurate targeting of potential customers based on location, interests, gender, and other criteria set by the user. This helps ensure that the ad reaches its intended audience more effectively than traditional methods of advertising.
Market size and Value of the Classified Advertisements Services Market for 2021 to 2031
The global Classified Advertisements Services Market is predicted to grow at a CAGR of 10.5% during the forecast period 2021-2031. It is expected to reach a market size of US$ 68.8 billion by the end of 2031 from US$ 28.4 billion in 2021.
The rise in digitalization and penetration of the internet, shift towards online classified websites, growing demand for mobile applications, increasing e-commerce activities, and rising investments in digital advertisement platforms are some of the major factors driving the growth of the classified advertisements services market.
The North American region is expected to dominate the global classified advertisements services market throughout the forecast period due to its significant contribution towards technological advancements and high adoption rate of digital advertisement platforms. Moreover, Asia Pacific will witness significant growth opportunities in this market due to increasing disposable income and investments made by companies for online marketing activities in the region.
Challenges faced by the Classified Advertisements Services Market/ Restraining factors of the Classified Advertisements Services Market
Some of the restraining factors of the Classified Advertisements Services Market are :
1. Increasing competition from free classifieds websites: Free classifieds websites such as Craigslist and Kijiji are becoming increasingly popular, offering similar services to those offered by paid classified advertisement sites. This is causing a decrease in the market share of paid classified advertisement sites, thereby restraining their growth.
2. Growing prevalence of online fraud: The prevalence of online fraud has been increasing exponentially, making it difficult for users to trust the authenticity of ads posted on these sites. This has caused a decrease in user confidence, thus hampering the growth of the market.
3. Difficulty tracking ROI: It can often be difficult for companies to track their return on investment (ROI) from using these services due to low visibility and slow response time for ads posted on these sites. This factor is also hindering the market growth.
Key Market Players of the Classified Advertisements Services Market
Several key players/Manufacturers/Vendors of the market are : eBay Inc. (US), Craigslist Inc. (US),OLX Group (Netherlands),Quikr,India Pvt Ltd. (India) Schibsted ASA (Norway) ,Kijiji (Canada), Recycler LLC (US), Backpage LLC (US), gumtree.com Ltd. (UK), Alioze.com (France).
Based on type the Classified Advertisements Services Market is divided into four parts:
General classified advertisement services refer to the free and paid ads which are used by companies or individuals for selling or buying their products or services. Motor classified ads are related to vehicles like cars, bikes, etc. Job classified ads are used by job seekers and employers for looking for suitable job opportunities and employees respectively. Real estate classified advertisement services include buying, selling, and renting property.
The current market trend suggests that motor and real estate classifieds have seen significant growth in the past few years due to increasing demand from customers. Moreover, with the advent of digitalization, many new players have entered this market providing better services at lower costs as compared to traditional players. This has further increased the overall market share of classifieds advertisement services globally.
Based on application the Classified Advertisements Services Market is divided into two parts:
Enterprise classified advertisement services are used by companies for advertising their products and services. These ads are generally targeted toward a larger audience. On the other hand, personal classifieds are used by individuals for buying or selling products or services. These ads are usually more specific and aimed at smaller target groups. The current market trend suggests that enterprise classifieds have seen more growth as compared to personal ones due to increased demand from companies.
Based on end-user and region the Classified Advertisements Services Market is divided into two parts:
4)Rest of the World (RoW).
In North America, the classified advertisement services market is dominated by the US, as it has one of the largest economies in the world. This can be attributed to the increasing number of companies and individuals using these services for advertising their products and services. In Europe, classified ads are gaining popularity due to the growing awareness of digital marketing among small and medium businesses. Asia Pacific is expected to witness the highest growth rate due to increasing internet penetration and rising disposable income in the region. The Rest of the World (RoW) is expected to have a slow growth rate due to low penetration of the internet and lack of awareness about digital marketing in some parts of the world.
COVID-19 impact and market status of the Classified Advertisements Services Market
COVID-19 had a great impact on the Classified Advertisements Services Market. The market witnessed a decline as the lockdowns were imposed across the globe owing to the COVID-19 pandemic. Many businesses stopped operations due to these restrictions, leading to a decrease in expenditure and advertising activities. This impacted the demand for classified advertisement services significantly.
However, over time, the market has recovered and is now witnessing growth gradually. The increase in online spending on advertising services during COVID-19 has been a major boost for this industry. This is mainly because companies have started using digital solutions to reach out to their customers and advertise their products or services online. Moreover, many businesses have also shifted their marketing strategies towards more cost-effective options such as classified ad services as opposed to traditional advertisement methods like television commercials or radio ads which require more budgeting. Furthermore, technological advancements have enabled easier access to these services with features such as geolocation targeting, automated campaigns, etc., making them increasingly attractive for small businesses and startups who can’t afford expensive advertisement options. It is expected that the demand for classified ads will continue to grow in the future due to their cost-effectiveness and increased accessibility through technological advances.
The recent development in the Classified Advertisements Services Market from 2019 to 2022
In 2019 January, Facebook launched a classified advertisements service in the U.S. and Canada, allowing users to buy and sell items through its Marketplace section. The company also added support for motor vehicles and real estate listings in the US.
In July 2019, Google launched a new classifieds service called Google Shopping Actions to help retailers reach more customers in the US and other countries. It provides users with access to thousands of products from different retailers on one platform.
In August 2019, eBay launched a new local classifieds service named eBay Classifieds Group (ECG). This service allows users to search for and post local classified ads in their city or country, as well as find jobs, housing, cars, and items for sale nearby.
In 2020 January, Amazon entered the classifieds market by launching Amazon Local Finds – a platform that helps shoppers find deals on new and used products from third-party sellers near them.
In April 2020, Craigslist released an updated version of its mobile app for iOS devices with improved features such as better navigation and search capabilities, enhanced security features, improved user experience, and more personalization options. Going forward into 2021-22, it is expected that
Classified Advertisements Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2030||US$ 68.8 billion|
|Growth Rate||CAGR of 10.5 % during 2021-2030|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||eBay Inc. (US), Craigslist Inc. (US),OLX Group (Netherlands),Quikr,India Pvt Ltd. (India) Schibsted ASA (Norway) ,Kijiji (Canada), Recycler LLC (US), Backpage LLC (US), gumtree.com Ltd. (UK), Alioze.com (France).|
Key Segments of the Classified Advertisements Services Market
Type Overview, 2021-2031 (USD Billion)
• Real Estate
Application Overview, 2021-2031 (USD Billion)
Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
• Middle East and South Africa