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Due to lack of time my last post was a little short so I am trying to get a little more detailed this time. As a consulting agency and software developer we work closely with newspapers in Europe to create the strategies and implement the technology and culture to make them a success.
One of our greatest learnings is that every market, company and staff is very different. They have to be picked up at different stages with different challenges to overcome. But the goal for all of them is clear: To implement strategies, organization and culture that mirrors the dynamic of today’s media and advertising markets. Just implementing a new “state of the art” or “status quo” is not helping in such an accelerated market with competitors from all directions.
Fortunately, Craig did not conquer Europe or Germany yet. And he will have a harder time than in the USA. Two reasons for that:
a) Germans / Europeans love organization and usability. Craigslist does not fulfill the standards of an average German / European online classified user.
b) German / European newspapers have been watching the process, founding several initiatives to cover the classifieds. Kalaydo, for example, is a very big classifieds market securing big markets in the west of Germany.
But still there is a threat as Craig just launched major German cities and accepts suggestions for new ones to open. Our lines were busy for a day or two. Still, I don’t think there is reason for panic if we choose our weapons well…
1. Know your enemy
How many publishers are afraid of Craigslist and have never used it before? Go online and sell something! See where you can offer differentiation from Craig in the selling or buying process!
2. Know your brand
Consider your brand. What do you mean to the people out there? I bet if I ask anyone on the street in your hometown where to get local classifieds, it would be your newspaper. But as soon as I get into the situation of searching or selling something used, I find Craigslist quicker than your site. Push your brand harder into the direction with technology (SEO, SEM) and strategy (marketing!!!).
3. Know your strength and weaknesses
What are you able to pull off? I mean operationally. Do you have the young, crazy, nerdy guys in your IT / Online department who come up with one creative idea a day? Most likely the answer is no. They won’t start playing around with Seesmic, qik, BlogLog and localization. Also be aware that those new technologies hold threats. TechCrunch went down three times a few days ago because Seesmic forgot to tell them (and all partners using the service) that they would do some service. Can you afford this?
So please have in mind what your organization is able and willing to do. Go back to what the people really want. The buyer wants quickly accessible, well organized and closely based pre-loved goods with a good price/quality ratio. What can you do to assure he gets this? Ever thought of a classified-editor, who really works the database, checks the search queries, and organizes / suggests the goods? Think Shopping-TV (e.g., Home Shopping Network), where goods are moved and presented as people call in.
Also think about adding value to high priced goods. Have an appraiser look at a car or house (seller pays) and give the ad a seal of approval. And play out the local aspect. Show them how much they save by buying the thing that is close instead of getting it shipped. Often people forget how much postage and packing are. And how inconvenient complaints are when the seller lives far away.
On the other side you have people who want to sell something. Offer them a short process with lots of help: Average price for the product, lists of words to use that work well and others that won’t. Tell them how many people search your listings every day and where they come from (Google tells you; just pass it along). And spur spontaneous interest by placing the ads in unexpected places on your website to find buyers.
Consider using the Google Ad-Sense space for classified ads and sell this placement for a premium. This guarantees premium placement in an ad-context (used-car ads in the motor sport section, personals maybe where you have movie ratings and event listings, etc.) and gets in front of people who might be interested but don’t know it yet. Additionally, you can start an affiliate program just like AdSense, making other local website providers into partners and spreading your ads closely packed over your area.
The seller gets a lot of exposure and many contacts to sell the thing. The buyer gets lots of impulses and signals that you are the place to go to. Locally, Craig will eventually fall behind your platform as you sell products easier, faster and more conveniently in the area.
All very good approaches you can start implementing tomorrow and fighting / winning back your classifieds. But there is another reason why I am optimistic: Craig’s German grammar and spelling is very poor.
Andre Helleman is CEO of zelect GmbH (Germany), and former research director of Creative Loafing Media (Atlanta, Georgia).
Tags: craigslist, Germany, solutions, threats
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