The Morgan Stanley Online Classified Advertising Report: It’s About Search/Find/Obtain (SFO)…

The Morgan Stanley Online Classified Advertising Report: It’s About Search/Find/Obtain (SFO)…

Online classified-related advertising has the potential to encompass a much larger market than offline, owing to its global reach, pricing transparency (which often leads to lower prices), and the ability to consummate transactions instantaneously.

 

 

 

We believe the SFO (Search/Find/Obtain) capabilities of the leading Internet platforms are helping drive online share growth

We believe SFO (Search/Find/Obtain) is the third killer application of the Internet. The first was email. The second was the browser. Because of SFO, we believe online classified-related advertising has the potential to encompass a much larger market than offline, owing to its global reach, pricing transparency (which often leads to lower prices), and the ability to consummate transactions instantaneously.

 

Online classified advertising is a rapidly growing market

In the US, online classified advertising revenue grew 119% in C2001, to $1.4 billion, while newspaper classified advertising declined 15%, to $17 billion, and total US advertising declined 9%, to $147 billion. We estimate online classifieds are gaining additional share in 2002.

 

Our Internet & PC Applications Software Industry View is Attractive

Given still-strong 20%-plus expected global growth in Internet user and usage, we continue to believe our stocks could outperform the market over the next 12-18 months.

 

 

Read all:

The Online Classified Advertising Report: It's About Search/Find/Obtain (SFO). . . (101 pages, PDF)