Global Statistics Representing Online Classified Ads Market Scenario
Online classifieds are a progressive component of many organizations; organizations are utilizing online classifieds as a medium to promote their products and services for attracting and targeting a larger customer base. The surging demand for used cars and a large number of expatriates are key growth drivers for the online classified ads market.
The global online classified ads market is expected to grow at a CAGR of 9.5% during the forecast period, 2019–2026.
Normal Ads to Account for a Larger Market Share than Featured Ads Throughout Forecast Period
Normal ads are pegged to account for a larger market share compared to featured ads. Various e-commerce companies based on customer-to-customer businesses are generating revenue from displaying AdSense ads/sponsored ads on their webpages. As these websites have significant traffic running into millions of visitors every month, displaying classified ads on a webpage proves to be a lucrative revenue source. Facebook, one of the top revenue-generating companies, provides ‘Facebook Ads,’ which is becoming a core component of various companies’ future business plans. Facebook has around 2.41 billion monthly active users, which is more than any other social media site.
Aggressive advertising and eager investors are accelerating the growth of featured ads. Craigslist, eBay Classifieds, Quikr, and others have started charging for upgrading to the premium version. Premium ads make an advertisement more visible on a webpage and further improve customer reachability to sell a product faster than in the free version.
Auto Sales to Account for a Prominent Share of Online Classified Market by Application
The online classified industry is a place that facilitates hassle-free buying and selling of automobiles. Auto sales are expected to experience a significant growth rate in the global online classified market. The market for automobile online classified ads has been expanding worldwide in the last few years. The increasing demand for used cars is positively influencing the global online classified market. Luxury SUVs, full-size sedans, premium sedans, and SUVs are the most preferred cars in online classified ads.
Rising Adoption of Online Classified Ads to Cater to a Larger Customer Base
Employers are increasingly looking for a place that targets mass audiences and better-reach sites, where they can find ideal candidates. Smartphone penetration is one of the critical factors responsible for the adoption of online classifieds. According to SHRM.org, 86% of active candidates use their smartphones to begin a job search.
Real Estate Segment by Application to Gain Traction in Coming Years
Further, rental properties classified ads allow users to search for residential, commercial, or agricultural properties to either buy, sell or rent, in various countries. Online real estate is thriving lately, as more people prefer to perform real estate transactions online. This is mainly due to benefits offered by classifieds, such as inexpensiveness, broader audience, and faster communication. Thus, real estate classifieds have increasingly become competitive, with websites cropping up in the real estate market
High Mobile, Internet, & Technology Penetration Drives Market Growth in North America, With the U.S. as the Most Prominent Contributor
North America is expected to witness dynamic growth in the online classified ads market. The U.S. is expected to hold the largest market share in North America’s online classified ad market due to high mobile, internet, and technology penetration. The Disruptive Competition Project (DisCo) estimates that Americans spend 28% of their time on mobile devices and 52% of their time on digital media is on mobile apps. The online classified market in Canada is mostly dominated by eBay-owned Kijiji and startups such as VarageSale, Facebook buy and sell groups, and barter groups such as Bunz.
Germany, the U.K., and France are Key Contributors to Europe’s Online Classified Ads Market, while Russia Possesses Significant Growth Potential
According to IAB Europe, online advertising expenditure in Europe accounted for EUR 36.4 billion, with a growth rate of 13.0%. The market for online classifieds in Europe is rapidly growing due to its high penetration in countries such as Germany, the U.K., and France. Additionally, the emergence of technology triggering mobile penetration is accelerating Europe’s online classified ad market growth. In Russia, the online classified ad market has a lot of potential due to the region’s booming e-commerce, high internet and smartphone penetration, and large population.
China to Lead Growth in APAC’s Online Classified Ads Market
Asia-Pacific (APAC) is projected to grow at an accelerated pace in the online classified market during the forecast period, 2019–2026. According to WPP’s GroupM, China is the largest market in the online advertising in Asia-Pacific and the world’s third-largest market for internet advertising, with overall ad spending accounting for 84.4 billion with a per year growth rate of 7.8% as of 2017. Additionally, India’s market growth is spurred by millennials who are digitally literate. In India, notable players such as Quikr and OLX together hold a share of more than 60% of the online classified market.
Brazil to Spearhead Growth in LATAM Online Classified Ads Market
Latin America is projected to witness significant growth in the global online classified ads market during the forecast period. Brazil is a leading country in terms of internet advertising spending in South America, followed by Argentina. For instance, the global media company, Schibsted, cemented its position in the Brazilian online classifieds site OLX.com.br by increasing its ownership from 25% to 50%, and 100% of Yapo in Chile. Digital advertising in South America remains lower than the global average; however, many online classified ad players are entering the market by developing strategies to better connect and engage with consumers across all channels.
The UAE & Egypt to Drive Growth of Digital Agencies for Online Classifieds in the Middle East
The Middle East and Africa region is expected to witness considerable growth in the online classified ads market. According to mideastmedia.org, the Middle East has more than 500 digital agencies offering a wide range of services in digital marketing. The UAE and Egypt are prominent countries for digital agencies of online classifieds. With the increasing number of digital startups, Egypt represents more than half of the advertising agencies in the region.
Investments to Create Growth Opportunities in Africa’s Online Classified Ads Market
Classified advertising in Africa is one of its kind on account of digital transformation. However, there is still a huge gap in digital advertising efficiency in the region due to the lack of advanced tracking, programmatic technology, and skills. Thus, by presenting investment opportunities for potential investors offers a positive approach to the development of the online classified market in the African region.
Some of the prominent players in the global online classified ads market are Craigslist, Quikr, Gumtree.com, OLX Group, eBay Classified Group, Free Classifieds, Web Classifieds, PennySaverUSA, Claz, Geebo, Mondinion.com, Locanto, Sell.com, STClassifieds, Yakaz.in, Adpost, Wiju, Shoppok, USFreeAds, Adsglobe.com, Scout24, Oodle, AdlandPro, and ClassifiedAds.com
Online Classified Ads Market Segmentation
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