Craigslist has quietly taken a step to increase its revenue — adding nine U.S. markets to the 19 markets where it charges for recruitment advertising, bringing its paid-listings markets in recruitment to 28 cities.

The addition of those nine markets could increase the company’s revenue by $27 million or more in 2013, the AIM Group estimates. The AIM Group projects that fees from those cities will add only nominal revenue in 2012 because they will only have impact, effectively, for four weeks or so due to the traditional holiday-season hiring lull.

Craigslist is charging just $25 per job listing in the new cities on its paid-recruitment list, even though its rates are remarkably low by the standards of traditional media and major online recruitment sites like and

The new markets:

— Detroit

— Inland Empire (California) (Ontario / Riverside / San Bernardino area)

— Kansas City

— San Antonio

— Las Vegas

— Minneapolis / St. Paul

— Orlando, Fla.

— St. Louis

— Tampa / St. Petersburg, Fla.

Ironically, adding posting fees for recruitment advertising frequently increases the effectiveness of Craigslist in the cities where it charges, by eliminating junk and spam posts, and decreasing the number of times recruiters repost their ads to stay near the top of the list.

Craigslist charges $25 for recruitment ads in 28 of the 29 markets where it charges for job listings, and $75 in the San Francisco Bay area. It also charges $10 for apartment ads placed by brokers in New York City, and $10 for ads for “therapeutic services” (primarily massage parlors and spas) everywhere in the U.S. It does not charge for advertising outside the U.S.

In a 171-page report to be released on Monday, the AIM Group estimates Craigslist overall revenue for 2012 at $126 million, a 9.7 percent increase from its 2011 revenue of $115 million.

The AIM Group estimated that each of the nine markets would add approximately $3 million in full-year revenue to Craigslist in 2013, perhaps even more if economic improvement boosts hiring. (Specific methodology is outlined below.)

The company did not mention the additional fees on its blog, nor did it respond to an inquiry about why the fees were raised. The only way of determining that the fees were implemented las Thursday was a notice that its “posting fees” page was updated Nov. 1.

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Methodology: How did we figure the $27 million increase in revenue for 2013? We took the 16 mid-size markets in our 2012 revenue breakdown, and factored that revenue by half, since only nine cities were added. Then we factored it again by 80 percent, since most of these cities are smaller than the 16 mid-size markets we calculated — markets such as Seattle, Chicago, Boston, Atlanta, Philadelphia, Austin, Texas  and Sacramento, Calif.

For more information on Craigslist and its 2012 revenue, see our news release here or download our 2012 AIM Group Global Classifieds Annual here.


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