The local classified ad space online is rapidly changing and potentially cutting into one of the remaining cash generators of the traditional newspaper.
Craig’s List currently dominates the free ad space but Facebook recently added free classified listings and now eBay just launched a free classified site called Kijiji.
Facebook and eBay have a long way to go to get any real traction with these offerings but, given the players involved, I would take a look at these new sites and see if they make sense for your business.
I would look for other social networking sites to take this direction as well. When this happens it will make it increasingly difficult to charge for these services.