Craigslist expects record revenue: $100 million ONLINE ADVERTISING

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Defying its anti-commercial reputation, Craigslist is expected to rake in $100 million in revenue this year, the most ever for the classified advertising site, according to a new report.

The San Francisco company's finances are a rare bright spot amid a slumping economy that is decimating businesses of all kinds.

Classified Intelligence Report, a publication by media consulting firm Advanced Interactive Media Group, predicted in its report that Craigslist's revenue would increase 23 percent in 2009 from the year before. While other classified listings businesses, such as newspapers, retract, Craigslist's is expanding, primarily because of its growing popularity as a jobs board.

"Craigslist, whether you agree with what it's doing or not, has pretty much changed the way we look at classifieds," said Jim Townsend, editorial director for Advanced Interactive Media. "They're a game changer."

Susan MacTavish Best, a Craigslist spokeswoman, responded: "As a closely held private company, we never comment on rumors with regards to our revenue at Craigslist or back-of-the napkin guesstimates. In fact, we have never discussed our revenue at any time, so the plethora of numbers that have been reported over the years are merely stabs in the dark of which we've had no part - this most recent study included."

Craigslist charges $25 to post job ads in 17 cities. Job listings in the Bay Area cost $75. In New York City, the site charges real estate brokers $10 for each apartment they list.

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The estimate of Craigslist's revenue included proceeds from listings in its erotic services category, which was renamed adult services last month. The company had said it would donate all money from erotic services ads to charity, but left it an open question as to how revenue from its successor category would be used.

Revenue from adult services is expected to be at least $17.9 million this year, the report said.

Jim Buckmaster, Craigslist's chief executive, has repeatedly said that increasing the site's income isn't a priority. Instead, he takes a money-isn't-everything approach that leads many people to erroneously believe that the Web site is a nonprofit.

The company explains its financial philosophy on its Web site by saying that it relies on "local communities to suggest ways to make money without compromising Craigslist." Posting ads to sell a car, find a roommate or land a date remains free.

In April, Craigslist attracted 46.5 million unique U.S. visitors, according to comScore Inc.

Newspaper publishers have complained that Craigslist's rise has eroded their once-dominant print classified businesses. The defection of advertisers to Craigslist and other Web sites sent U.S. newspaper classified sales spiraling down 29 percent last year, according to the Newspaper Association of America.

Craigslist's revenue has been growing quickly, nearly doubling over the past two years, and increasing by a factor of 14 since 2003, according to the report. Still, its $100 million in annual revenue would place the company far below Internet giant Google, which had $21.8 billion in revenue last year.

There was no estimate of Craigslist's profit in the report, although Townsend said that it's no doubt highly profitable. Overhead is kept low with just 30 employees working out of a Victorian house in San Francisco.