Monday,
August 11, 2003 |
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Feature |
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Net usurps print ads
TRYING
to sell an old Beatles record or grandma’s old-fashioned coffee pot
often used to be hard work. The seller needed to set up a stand at a
flea market or place a small ad in the local paper.
The financial return often
did not match the effort. The Internet has changed this. Trading in used
items has become easier and often more successful. Items advertised
online reach far more potential customers. Auctions mean that buyers bid
against each other and push up prices.
While many ideas of the
new economy boom have been forgotten, the online market for flea market
items or motorcars has shown themselves to be highly successful. This
has also wrought changes in the newspaper small-ads business.
Anja Pasquay, of the BDZV
newspaper organisation says the industry is aware that the ads on the
Internet are easier to deal with. But the newspapers are not simply
letting this happen. "They are developing their own Internet
market." EBay’s success must look daunting to some media. More
than 60 million persons worldwide trade on the largest of all online
trading communities — including 12 million in Germany. In Germany a
Volksagen car is sold online via eBay every 25 minutes while a vacuum
cleaner changes hands every seven minutes. A cellphone is sold via eBay
every 30 seconds. The firm’s earnings worldwide in 2002 amounted to $
1.21 billion. Most of that came from the cost of insertions and
advertising. Of that sum, $ 250 million was profit. Ebay spokesman in
Germany Joachim Guentert says: "You can take it that more is sold
in Germany through eBay than through newspaper ads."
In the fields of cars and
furniture, smaller online dealers are doing big business. Portals such
as mobile.de or Autoscout each run about three quarters of a million
ads. Both reported turnovers up 50 per cent in the past year.
Mobile.de chief Ruediger
Bartholatus says the 47,000 motor dealers in Germany managed to do about
a quarter of that business.
The area of electronic
services is having an effect on newspaper small ads, says Heiner
Urhausen, manager
of a newspaper association. Printing runs are declining. "It is
impossible to say how many ads are disappearing into the Internet."
The economic slump is
another reason for the declining business, he said. — DPA
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