The recruitment advertising industry enjoyed a strong 2005 in both online and print adverts, with even the newspaper industry enjoying double digit gains in help-wanted classified.
According to a new study from Borrell Associates, new trends emerging in the recruitment industry look set to make 2006 an interesting and prosperous year for the market.
The addition of niche sites and potential of the internet has seen recruiters beginning to shift major portions of their budgets from brochures, job fairs and temp services into new online services.
Resulting from these changes, Borrell reveals that online recruitment advertising nearly trippled in 2005, reaching $3.5 billion from $1.3 billion.
Commenting on the report’s findings, Colby Atwood, vice president at Borrell Associates said: “The handwriting’s on the wall for traditional recruitment advertising business.”
He continued: “One of the things the internet has done is really crush the profit margin out of classified advertising for newspapers, and kind of make the business model obsolete.”
However, Borrell asserts that every local market is different, with in some job categories, two thirds of job seekers conducting their search offline. This puts a clear advantage in the hands of media companies that can offer both online and offline recruitment advertising.
In the UK, Trinity Mirror has recently entered into the online recruitment arena, acquiring the hotgroup for £50.5 million, adding to its recent purchases of GAAPweb.com and Smartnewhomes.com. The aquisitions serve to enhance classified recruitment offerings (see Trinity Buys Online Recruitment Site).
Specialist business publishing and information company, Centaur Holdings, recently predicted a rise of 7% in overall revenues for the six months ended 31st December, boosted by an increase in online recruitment advertising in the legal and financial sectors (see Centaur Predicts Revenue Rise Of 7%).
The internet’s dominance in 2006 is being predicted throughout the media community, with OPera Media recently forecasting online advertising to continue the strong growth that it has seen recently, with the growth this year at 40% slowing to 35% next year. By 2010, the value of online advertising is projected to reach £2.3 billion, up from £912 million in 2005 (see UK Adspend To Hit £15 Billion By 2010).
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