As if to confirm my earlier post about classifieds being a crowded space, here comes SiliconBeat on ZiXXo, another new classified ads player:
For less than $300 a year, local merchants can create online coupons that will appear in a special section above or below the free ads on ZiXXo. Users print out the coupons and redeem them. Hogan and his staff have devised a coupon-wizard system that he says makes it easy for merchants to create online coupons in minutes. Merchants can change the coupons whenever they want.
“Seventy-nine percent of the U.S. population uses coupons,” says Hogan. “”But on the Internet, it’s much better than clipping and saving. If we can use classified ads to build local communities, then we can capitalize on the coupons.”
That leads us to Hogan’s next challenge: luring local merchants to buy into the online coupon program.
Experts view local businesses as a huge, untapped market for online advertising, potentially worth billions of dollars.