The Nigerian Online Classifieds Market…Way To Go?
We’ve reviewed quite a few classified ads sites here on StartupsNigeria.com such as Nairalist, Chukslist, Classifieds Nigeria (site now abandoned), and now it seems that the online classifieds industry in Nigeria is getting more attention from web users everyday, and even Solomonsydelle has requested a comparative analysis of the various classified sites in Nigeria.
While we think that some of these sites are tapping into the shortcomings of the leading classifieds sites, Craigslist and Kijiji (perhaps some are copying Craigslist), we wonder how they hope to make money. Just like other classified ads sites, they offer buyers and sellers an opportunity to engage in a free and open market.
But whether they make money or not, they are providing great value for local businesses and individuals who wish to buy and sell their items online. Besides, they offer this service all for FREE, unlike newspapers and Nigeria’s first weekly classified ads publication, WASEET that charge a fee.
So are they useful? Yes.
However, I’m concerned about their sustainability as more and more classified ads websites are being launched. Today we have Nairalist, Chukslist, Nairalists, Ariaria, Bunchbay, Kerawa Nigeria, WhoGoBuy, and probably 20 more and it also seems that some websites are providing classifieds services such as 9jabook’s ask9ja.com.
Again, some of these sites have had issues with building with the right programming languages that offers great functionalities, spam-resistance and security features. For example, WhoGoBuy (launched in late 2005) built their site using ASP, then migrated to ASP.net about a year later, and then moved over to PHP a few months after.
And now they are upgrading again? See Nairalist’s founder facebook thread below:
With all of these, does it seem like the Nigerian classified ads market is profitable? Would they be forced to charge a fee for adverts placed? Or will they resort to other revenue generating models?
Interestingly, it seems that the classified ads market is quite lucrative as reports estimates Craigslist 2008 revenue at $80million, according to CNet.com, with its sole source of revenue from paid job ads in seleced cities.
The question now is: Can Nigerian classified ad sites monetize via paid job ads or any other service listings?
I’d like to see statistics on market reach for classifieds in Nigeria. What is the incentive for someone to pay for a listing on Nairalist over a newspaper in Nigeria?
While I like the principle, I’m dubious of the income potential in a country where internet is still not yet a primary point of access for the majority of people. Craigslist, Gumtree etc have the benefit of operating in countries where people don’t have any web access issues, it makes a HUGE difference..
Strip off the fancy digital packaging and a classified site is simply an advertising platform like a roadside billboard. There simply is not enough internet adoption in the marketplace to support classified sites.
These websites will only exist as long as the founders are willing (and able) to sustain non-revenue generating websites as a community service of sorts. The day will come when the level of everyday internet use and the volume of people using the internet easily and conveniently in Nigeria will be able to support a classified model…but that day is a while off.
I should note that an exception might be made for some ultra-niche variations of the same concept. Marketplace Websites targeting Nigerians in the diaspora (and affluent Nigerians in Nigeria) with big ticket listings like specialized Real estate listings, business opportunity or consultative websites may find profitable revenue models…for the rest, the time is not yet.
I believe the Nigerian classifieds market is very alive, and growing. It will boom financially too as it has done in other developed countries.
When Craig Newmark started Craigslist around 1995, it took him up to five years to open in another city. Being the first to market, he is benefitting from the fruits of his labour.
I love those geeks trying to create online classifieds for their local communities. They’re creating a very useful service. Monetisation, like what you hear in other online classifieds markets will come. It will come when internet itself becomes very common in Africa. And when it does, the pioneers will generally have the greater share.
The Nigerian classifieds business is a business of trust. And trust takes years.
For what it’s worth, I don’t think we at http://Kerawa.com are doing any poorer (financially) than other web ventures in the same space (say social networks, forums) the same age (say less than 2 years).
You’ve got to love this African classifieds business. There’s a lot of (potential) ways to monetise it beyond contextual or banner ads.