When Facebook (NASDAQ:FB) got its start back in 2004, the original business plan was to focus on local advertising. The approach seemed sensible at first, considering the company was building a huge presence on U.S. campuses, but the strategy quickly faded and Facebook instead focused on branded ads.
However, Facebook might be moving back toward that original vision — according to a recent report at Business Insider, Facebook is experimenting with a classifieds system.
With its extensive data on more than 1 billion users across the world, Facebook could see plenty of traction; not to mention, a classifieds system would be another way to help boost mobile revenues. According to Business Insider, “The ads would charge people a small fee for prominent placement in friends’ news feeds.”
Should Craigslist be worried? No — at least not right away, considering the company has a great brand in its niche. But if Facebook can get its users in the habit of placing classifieds, it could be a growing problem for Craigslist down the long term.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.“ Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.