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Job Board Pricing

(January 11,  2005) - More than half of all businesses won't even consider hiring from outside of the neighborhood. Relocation costs, time in the transfer queue and assumed availability of local talent make national hiring a non-starter in most companies. This simple notion is one of the few reasons that local newspapers remain in business.

Employment advertising revenues have kept marginal properties in operation for over a decade.

The revenue from classified advertising continues to decline for the little local players. Constituting the majority of all newspapers, small shops have simply failed to learn how to navigate in a competitive market. Dying a death of one thousand cuts, their former monopoly is being swallowed by players from the internet.

The problem is simple, really. Newspapers have to focus their efforts on customers. In other words, they have to sell, proactively. One good look at the organizational structure will show you that there is not usually a Marketing and/or Sales department in most of these operations. Outselling them in the field is a pretty easy proposition.

The business that remains on their plates is all legacy. Although a fair amount of money has been invested in technology, newspapers have consistently refused to invest in their customers. The belief, it seems, is that content and technology will ferment together and turn into cash.

Meanwhile, our holiday mail included a notice about a change in the Yahoo/HotJobs pricing structure.

Clearly targeting the local markets, Yahoo introduced pricing by geography. With all of the other options in the product offerings, Yahoo is beginning to emerge as a player in a different business than its competition. Able to make a pricing assault on local markets while delivering national global exposure, the emerging Yahoo business model combines community development features with more traditional approaches.

At $39 a job posting, Yahoo is exposing the weaknesses in the newspaper business models. By making local purchasing a commodity buy, Yahoo steps up the pressure to force the small players to compete. Low price points make online advertising for local talent a real winner.

Over the long haul, however, it's local targeting and reach that are the real value offered by any player. The local paper's challenge is to exploit the strength they are currently letting slip.

John Sumser

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Copyright © 2013 interbiznet. All rights reserved.
Materials written by John Sumser © TwoColorHat. All Rights Reserved.
Mill Valley, CA 94941

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         © 2013 interbiznet.
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         Materials written
         by John Sumser
         © TwoColorHat.
         All Rights Reserved.