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Walmart’s Local Move
by Andrew McCaskey
The move by Walmart into the local Classified advertising marketplace is one more nail in the coffin of local newspapers over the long term.
The value of classified advertising is something like $30 Billion each year. While the auction process on eBay has developed as one highly successful model, continued fraud charges (especially for items like laptops) have driven a lot of transactions to dealing locally – face to face through Craigslist.
The problem has been that Craigslist is present only in large and medium sized cities. Thus, the opportunity that the Walmart branded service outsourced to oodle.com uses to target the areas in which the retail giant is strongest – rural areas and small towns.
The Walmart effect could be a very, very good match to the needs of the same base of consumers that form much of their core market.
As much as the high income segment scoffs at Walmart, they are an incredible force in the marketplace – and this could be leveraged into another win. Like it or not.
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