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« Comments on media coverage of the London bombings | Main | Upcoming Forrester boot camp on blogging, RSS, viral marketing, etc. »

July 12, 2005

The future of online classifieds: HotJobs and Jobster show the way

By Charlene Li

Yahoo! announced today that its job service, HotJobs would be crawling company Web sites for job listings and adding those listings to its “index” of jobs. One the surface, this seems silly – why would they want to cannibalize the service’s main source of revenues, paid jobs?

I spoke with Dan Finnigan, who runs HotJobs, about their plans. He said that the #1 goal for HotJobs and Yahoo! is to provide a comprehensive job search experience. They were noticing that consumers were starting to conduct job-related searches on the general Yahoo! search pages, and advertisers were buying up job-related keywords. According to Dan, Yahoo!’s long term plan is to have another tab appear on search.yahoo.com for “Jobs”, in much the same way vertical search engines already exist for shopping and local searches. Job listings would also appear in general search results.

The twist is that HotJobs plans to put the paid listings first in the search results, and first in the integrated search listings. As anyone knows from general search results, it’s rare that people will venture beyond the first few pages of a search results. Here’s an example of a search for “RSS” in San Francisco – when I did this search, there were a total of 41 jobs, with 31 of them featured listings. Those ten “scrapped” listings came from just two companies – Juniper and Ask Jeeves – but I fully expect to see a more comprehensive list.

The “free” listings will benefit jobseekers who are looking for very specific jobs or jobs in locations that don’t have a lot of online recruitment listings (here’s another example). The secret to Yahoo’s revenue preservation is that if a company has problems filling a position, they will feel the need to pay for placement in the featured listings – as well as access to resume database.

So Yahoo! really doesn’t have much to lose in terms of revenues – and they also have a great deal to gain as they are third place player to Monster and CareerBuilder. Also, I think Yahoo! sees the writing on the wall with meta-job search engines like Indeed.com, Simply Hired, and WorkZoo that were scraping all of the major job search engines. And Google isn’t far behind – although they have made no announcements, I fully expect Google to unveil a comprehensive classifieds search engine within the next few months.

It's inevitable that job listing prices will feel pressure, yet Yahoo! has alternative ways to monetize job listings throughout its network.

Can Monster and CareerBuilder follow in Yahoo!'s footsteps? It's unlikely as they both lack the greater context of a general portal and search site -- they aren't in as good a position to make up any shortfall in revenues that will inevitably result.

The problem with Yahoo!’s approach is that it’s crawling company job sites and building a great index – but it simply means more jobs for candidates to apply to and get no reply.

Enter Jobster. I first spoke with Jobster in March and was impressed by their business model, which is combination of applicant tracking system and social networking. Recruiters can send out an email to their contacts notifying them about a job opening, and those contacts in turn can either apply for the job or forward it on to other people. The beauty of Jobster is that it turbo-charges one of the top ways people find jobs – referrals. One sure way to make sure that you get an interview is to have someone walk your resume (OK, it’s really done via email) to the hiring manager. While I don’t expect Jobster to beat the job boards in terms of quantity of jobs or number of job seekers, I do expect that candidate quality and the candidate experience will be extremely high.

Now it turns out that Jobster is buying WorkZoo, which it announced today as well. I spoke with Jobster CEO Jason Goldberg on Monday, and he described their vision of how WorkZoo will allow users to expand their search beyond their network of jobs on Jobster proper and see “every” job. WorkZoo has its cut out for them – in previous testing, they lagged significantly in their parsing ability compared to Indeed.com and Simply Hired. But this combination of Jobster and WorkZoo makes sense as a combined service – it’s also is similar to the partnership that currently exists between professional social networking service LinkedIn and Simple Hired.

I expect that Yahoo! will eventually loop its social networking service into HotJobs and enable a similar type of service to Jobster, especially since it also has an applicant tracking service for small and medium sized businesses. But one thing it should do is to be truly comprehensive and scrap jobs from its competitors, Monster, CareerBuilder, and other newspaper sites. Otherwise, they leave the door open for Google, Indeed.com, and Simply Hired.

Indeed.com and Simply Hired will have a hard time fighting off giants like Yahoo! and Google and are ripe acquisition targets. MSN will likely take a look at Indeed.com and Simply Hired, as will Google, but they are likely to pass and build their own crawlers as Yahoo! did that will integrate better into their core search algorithms. The most likely buyers for these sites include IAC/InterActive Corp, which also owns Ask Jeeves and social networking site ZeroDegrees, as well as newspapers chains who are not CareerBuilder affiliates (like MediaNews Group or Belo) who are struggling for relevance in the online recruitment space.

Monster may dust off some of the technology it has lying around from its Flipdog acquisition, but it's likely dated. CareerBuilder and its newspaper partners are still coming to terms with the cannibalization of print classifieds -- it will have a hard time understanding that even online recruitment revenue is coming under assualt.

The result: Look for the emergence of what I call "social classifieds", where the ability to connect people to each other will be the hallmark of success. In a world where listings are a commodity and easily crawled, the true differentiation will be the quality of the experience. It is for this reason that Jobster's model will ring true, and why Yahoo! 360 and MSN Spaces will be core to the success of their respective classified strategies. Google may have the best technology around, but it's Achilles’ heel will be its lack of a robust social network.

Humorous aside:

What I didn’t realize (thanks to my technology blackout) was that the Yahoo! Job Search service had already been quietly launched the previous week, and in fact, had been written about in Yahoo’s own search blog. So throughout Monday afternoon, I kept getting phone calls from reporters and industry colleagues who were sniffing around for some sort of “big breaking classifieds” news. I was told by Yahoo! that the news was embargoed until Tuesday morning, which I steadfastly insisted on honoring. It was only later after business hours that I embarrassingly discovered that everyone already knew about it and that Yahoo! was just formally announcing it. Lesson learned – read the RSS feeds asap after vacation!

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Listed below are links to weblogs that reference The future of online classifieds: HotJobs and Jobster show the way:

» Yahoo!, Online Job Search and Charlene Li from Syndicator blog
Forrester's Charlene Li is consistently spot-on with her analysis and commentary, and it's always a pleasure when the Syndicator's aggregator shows a couple of new posts after a break of a few days. Here, Charlene takes a close look at the online job s... [Read More]

» Jobster/WorkZoo update from The Blog of Zoo
Some press coverage: The Puget Sound Business Journal has a story on us. Gautam Gosh spotted my blog entry at midnight. Here's the release on Yahoo Finance. Charlene Li covers us alongside Yahoo in detail. More to come...... [Read More]

» Jobster acquires Workzoo - an example of early stage consolidation from Software Only
Just posted this over on the Glendor blog, but I wanted to make more general comments here: I was reading Charlene Li's excellentaccount of the launch of HotJobs crawling capability when I spottedthat Jobster is buying WorkZoo. According to Charlene: I... [Read More]

» HotJobs' flawed strategy from stone
HotJobs has un-embargoed the news, Charlene Li is reviewing it, and we’re interested! Welcome back from vacation Charlene! My BlogLines... [Read More]

» On online job postings from Resourcing Strategies
Charlene Li has posted on the changing face of the recruitment market. She is very positive about the linking of social networking and search, especially about the Jobster type model. I'm still unconvinced.... [Read More]

» Yahoo's job scraping: Cannibalizing the industry? from SiliconBeat
Here's our Mercury News story (or here) about how Yahoo's online job division, HotJobs, plans to announce that it has taken the bold but controversial step of finding more job listings for its users by scraping them off the Web sites of employers. The ... [Read More]

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Comments

Emil Sotirov

"Look for the emergence of what I call 'social classifieds', where the ability to connect people to each other will be the hallmark of success... the true differentiation will be the quality of the experience."

Charlene... this is really the heart of the matter - connecting people in an information saturated environment (goal driven search being the primary motivation)... with mutual visibility naturally enabling learning from each other's behavior and ad hoc communication... think of big city street sidewalks.

I am currently working (in my company) on a new Web 2.0 platform called AidPage that combines (1) a simplified self-publishing capability - good for the non-geek, (2) a high degree of automatic contextualization of content, (3) easy self-tagging of content, (4) total mutual behavioral transparency and visibility - the reason people go to public places - to learn from each other by just seeing each other's behavior, (5) capabilities for automated publishing of large amounts of data - an API is coming soon, (6) sharing of ad revenue - to keep larger publishers interested, and (7) search across all the space.

Paul Forster

This is a nice analysis, although I don't share your view that the likes of Yahoo will quickly dominate. By ranking its paid listings above its web-sourced results, Yahoo/Hotjobs is implicitly following a paid-inclusion model that gives job seekers a very different job search experience from the 100% relevance ranking of Indeed and Simplyhired.

Paul Forster
http://www.indeed.com - one search. all jobs.

John Younger

Charline – As you may recall, this was the exact vision I conveyed to you when we met on August 5th, 2002. If you want to see where Jobster will be in 3 or 4 years, you may want to take a close look at Accolo. There are three huge holes in the business models for Hotjobs, Jobster, LinkedIn and others in this space. As we have proven with thousands of documented referrals to jobs and an international membership growing over 10% per month, there is a significant change on the horizon.

Great job summarizing the how the intersection of applicant tracking systems and social networking will fundamentally change the recruiting landscape.

Dave McClure

hi Charlene -

thanks for the mention above. .. and also thanks again for moderating at our Vertical Search conference last month (i think your podcast with John Furrier should be up soon).

re: your comment "Indeed.com and Simply Hired will have a hard time fighting off giants like Yahoo! and Google and are ripe acquisition targets.", i beg to differ. Google and Yahoo are search experts, but they're not necessarily *vertical* search experts, and they're also not necessarily application and/or content experts (though Yahoo & Google have some of both).

Froogle and Yahoo Travel are 2 examples where both large portals / search engines have made forays into vertical search, but haven't really won a big chunk of each of those respective markets. That's not to say they won't be succesful in engaging & monetizing their own user base, however it's a stretch to suggest that their efforts will dominate the larger market, or that Simply Hired can't be independently successful.

While we wouldn't necessarily turn down acquisition offers, the job vertical search market is still in its infancy & there is plenty of room for further innovation & developments (we know, because we've got them ready to rollout later this year ;).

In particular -- apologies if i keep beating a dead horse here -- SEARCH is not the entire story. Great user experiences are not built on search alone, or even on vertical search, they're also built on APPLICATIONS and CONTENT. While Google, Yahoo, MSN et al are certainly no stranger to these other areas, neither are they de facto dominators. They do have significant advantages in search technology, and in audience. But other folks can still build smarter mousetraps and succeed.

And we intend to.

For more thoughts on these topics, checkout info from the Vertical Leap search engine conference we hosted last month:
http://blog.simplyhired.com/archives/2005/06/vertical_leap_t.php
and my Top 10 Rules for Vertical Revolutionaries:
http://blog.simplyhired.com/archives/ppt/top10.ppt


- dave mcclure
www.simplyhired.com

Quentin at JobQos.com

Here at JobQos, we think that the future of recruiting is in Vertical research and in blog network.

Marc Cenedella, TheLadders.com

HotJobs has un-embargoed the news, Charlene Li is reviewing it, and we’re interested! Welcome back from vacation Charlene!

http://www.cenedella.com/stone/archives/2005/07/hotjobs_flawed.html

Jens Hagendorff

Yes this is a major step forward in the recruitment advertising space and the traditional job boards will have trouble competing with Yahoo. I also like your idea of "social classifieds". It will be interesting to see how Yahoo!, Google and probably MSN proceed. So far their earlier forays into the vertical markets (e.g. Google/Froogle; Yahoo/Kelkoo) including dating as well as networking have not been a raging success and killed the mayor competitors. Craigslist (Ebay/kijiji) – enabling local networking- is beating the mayor job boards already in some regional markets. To build a robust national social network is a different story. My guess is, that pure career oriented networking is not strong enough to achieve this and we will see new ideas launching pretty soon.

Russell Glass

As I mentioned a few days ago (http://zoominfo.blogs.com/soughtafter/2005/07/yahoo_jobs_sear.html), I largely agree with your analysis. If the big-boys in search focus on something like job search, it will be very difficult for anyone else to compete prior to having substantial awareness and brand-recognition.

I think the key is intense focus on MAJOR improvements -- can be through aggregation of partners and related content, valuable and innovative ways of presenting data, high value connections, and most of all, relevant and unique content and the services provided around that content (see Kayak for what I think is a focused example). Whoever has it will always be sought after. However, if it isn't unique or only subtly so, the winner will be the one with the most awareness or deepest pockets to buy awareness...

Thus, my take is that this may be a big distraction to Jobster if they believe in their core business. They now have a non-differentiated service to focus on in addition to a model that has a lot of potential, but is unproven. LinkedIn's approach with SimplyHired seems to make more sense -- they can deliver the valuable content within their service model without the distractions of running a business they know little about.

Scott McNealy likened the Compaq/HP merger to "tying the Hindenberg to the Titantic." Time will tell if Jobster has a disaster on the line...

Konstantin Guericke

Proactively asking for referrals from fellow employees or other trusted contacts is a popular feature for hiring managers and recruiters posting on LinkedIn Jobs, but it is not that different from just sending out an email, and adoption (sending the listing on to other people) is a key issue--especially if the message comes from HR rather the hiring manager him- or herself.

For passive candidates, there is no substitute for a good search in a large pool of employed professionals with rich, accurate and current career information. Of course, it is very helpful to have info beyond resume data, such as if you know people who have worked with this person in the past.

For candidates, it's definitely great to have access to all listing at one simple URL, but there must be good tools for narrowing the search or automatically filtering results, so that just interesting jobs show at the top (which is somewhat at odds with the mantra that people will pay for placement rather than the calssifieds themselves). Most career books say that the most important thing is to find someone at the company who will pass along your resume--I think no vertical search offering in the jobs arena will get traction without this capability, and the race for job seekers is on now.

Konstantin Guericke
Co-founder, LinkedIn

Marc Drees

Why is it that the Internet as a channel for finding jobs/recruiting personnel is still such a poor experience? The lack of social networking capabilities?

This seems strange when the traditional (newspaper) channel is showing a better conversion rate (quality of candidates, candidates finding jobs) than does the Internet. Without the aid of any added social network.

The real quality of the experience is to find a truly matching job or candidate, fast and easy.

From a job seeker perspective this surely means access to all the jobs out there but it certainly doesn’t mean endless lists of jobs to weed through. Because that doesn’t equate to fast and easy. And it will not let you find a truly matching job, other than by pure chance.

Taking this from the jobsite perspective it means that I have to offer excellent search capabilities. A function lacking from all if not most jobsites today. Why? For one, because they lack well-structured data.

And probably even more important, because searching is a one way exercise. And just answer this question: Is landing a job a one-way exercise? No, of course it isn’t.

So why aren’t jobsites providing a high-quality experience through creating a two-way exercise? Again, lack of well-structured data and probably the lack of functionality to address this two-way problem properly.

Here, and not in social networking lies the real challenge. For the sake of jobseekers and recruiters alike, I hope that this will be the focus of attention instead of adding more nice(?)-to-have features to already poorly functioning jobsite.

Tien-Chih Wang

Hi,
Take a look at this meta job search site.

http://www.onsofts.com/deepJobSearch.jsp

Kamil

Nice Site!
Good Work ;)

jobRssFeed

Now the site has been moved to

http://www.jobRssFeed.com

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WE ARE SELLING THE SIEMENS M35i FOR JUST...... $150USD
WE ARE SELLING THE SIEMENS S45i FOR JUST .....$170USD
WE ARE SELLING THEC SIEMENS S40 FOR JUST..... $160USD
WE ARE SELLING THE SIEMENS SL42 FOR JUST..... $300USD
WE ARE SELLING THE SIEMENS ME4 FOR JUST $190USD
WE ARE SELLING THE SIEMENS SL45i FOR JUST ....$180USD
WE ARE SELLING THE SIEMENS S55 FOR JUST ....$160USD
mail and get back to us at daffyphone4less@myway.com
TELL:+2348038464221

Felix

WE ARE SELLING ALL KIND OF MOBILE PHONES AT A CHEAP PRICES

WE ARE SWLLING THE MOTOROLA RAZOR V3 AT JUST......... $150USD

WE ARE SELLING THE MOTOROLA MPX 300 AT JUST ............$130USD

WE ARE SELLING THE MOTOROLA MPX 200 ..................$125USD

WE ARE SELLING THE NOKIA 9500 AT JUST /................$200USD

WE ARE SELLING THE NEXTEL I860 AT JUST ...............$110usd

WE ARE SELLING THE NEXTEL I930 AT JUST .................$130

WE ARE SELLING THE NOKIA 8850 SPECIAL EDITION AT JUST...... $150USD

WE ARE SELLING THE NOKIA 8850 GOLD EDITION AT JUST... -$126USD

WE ARE SELLING THE SONY ERICSSON P910 AT JUST .......$160USD

WE ARE SELLING THE SONY ERICSSON K500i,AT JUST ......... $100USD

WE ARE SELLING THE SONY ERICSSON S700i AT JUST ...... $150USD

WE ARE SELLING THE SONY ERICSSON P900 AT JUST ......$150USD

WE ARE SELLING THE SONY ERICSSON Z1010 AT JUST .....$167USD

WE ARE SELLING THE SAMSUNG D500 AT JUST .........$180USD

WE ARE SELLING THE SAMSUNG SGH-T500 Champagne AT JUST ...$130 USD

WE ARE SELLING THE SAMSUNG SGH-T200 AT JUST...........$123USD

WE ARE SELLING THE SAMSUNG SGH-T400 AT JUST............$69USD

WE ARE SELLING THE SAMSUNG SGH-S300 AT JUST........... $69 USD

WE ARE SELLING THE SAMSUNG SGH-E600 AT JUST .......$149USD

WE ARE SELLING THE SAMSUNG SGH-D410 AT JUST ........$150USD

WE ARE SELLING THE SAMSUNG SGH-S105 AT JUST ......$110USD

WE ARE SELLING THE SAMSUNG SGH-P100 AT JUST .......$100USD

WE ARE SELLING THE SAMSUNG E310C FOR JUST ....$99USD

WE ARE SELLING THE SAMSUNG E330C FOR JUST ,,,,.... $128USD

WE ARE SELLING THE SAMSUNG E800C FOR JUST .....$189USD

WE ARE SELLING THE ALCATEL One Touch 501 FOR JUST....$39USD

WE ARE SELLING THE CALCATEL One Touch 311 FOR JUST......... $35 USD

WE ARE SELLING THE ALCATEL One Touch 511 FOR JUST ......... $49USD

WE ARE SELLING THE PANASONIC GD67 FOR JUST ............. $49USD

WE ARE SELLING THE PANASONIC GD92 FOR JUST $69USD

WE ARE SELLING THE PANASONIC GD90 FOR JUST ...... $69USD

WE ARE SELLING THE PANASONIC GD75 FOR JUST $79USD

WE ARE SELLING THE PANASONIC GD55 FOR JUST .....$79USD

WE ARE SELLING THEPANASONIC GD95 FOR JUST .......$79USD

WE ARE SELLING THE SIEMENS C45 FOR JUST ..........$39USD

WE ARE SELLING THE SIEMENS C55 FOR JUST $49USD

WE ARE SELLING THE SIEMENS M35i FOR JUST...... $59USD

WE ARE SELLING THE SIEMENS S45i FOR JUST .....$79USD

WE ARE SELLING THEC SIEMENS S40 FOR JUST..... $89USD

WE ARE SELLING THE SIEMENS SL42 FOR JUST..... $89USD

WE ARE SELLING THE SIEMENS ME4 FOR JUST $79USD

WE ARE SELLING THE SIEMENS SL45i FOR JUST ....$69USD

WE ARE SELLING THE SIEMENS S55 FOR JUST ....$69USD

mail and get back to us at :mobileflex222@yahoo.com

Felix

WE ARE SELLING ALL KIND OF MOBILE PHONES AT A CHEAP PRICES

WE ARE SWLLING THE MOTOROLA RAZOR V3 AT JUST......... $150USD

WE ARE SELLING THE MOTOROLA MPX 300 AT JUST ............$130USD

WE ARE SELLING THE MOTOROLA MPX 200 ..................$125USD

WE ARE SELLING THE NOKIA 9500 AT JUST /................$200USD

WE ARE SELLING THE NEXTEL I860 AT JUST ...............$110usd

WE ARE SELLING THE NEXTEL I930 AT JUST .................$130

WE ARE SELLING THE NOKIA 8850 SPECIAL EDITION AT JUST...... $150USD

WE ARE SELLING THE NOKIA 8850 GOLD EDITION AT JUST... -$126USD

WE ARE SELLING THE SONY ERICSSON P910 AT JUST .......$160USD

WE ARE SELLING THE SONY ERICSSON K500i,AT JUST ......... $100USD

WE ARE SELLING THE SONY ERICSSON S700i AT JUST ...... $150USD

WE ARE SELLING THE SONY ERICSSON P900 AT JUST ......$150USD

WE ARE SELLING THE SONY ERICSSON Z1010 AT JUST .....$167USD

WE ARE SELLING THE SAMSUNG D500 AT JUST .........$180USD

WE ARE SELLING THE SAMSUNG SGH-T500 Champagne AT JUST ...$130 USD

WE ARE SELLING THE SAMSUNG SGH-T200 AT JUST...........$123USD

WE ARE SELLING THE SAMSUNG SGH-T400 AT JUST............$69USD

WE ARE SELLING THE SAMSUNG SGH-S300 AT JUST........... $69 USD

WE ARE SELLING THE SAMSUNG SGH-E600 AT JUST .......$149USD

WE ARE SELLING THE SAMSUNG SGH-D410 AT JUST ........$150USD

WE ARE SELLING THE SAMSUNG SGH-S105 AT JUST ......$110USD

WE ARE SELLING THE SAMSUNG SGH-P100 AT JUST .......$100USD

WE ARE SELLING THE SAMSUNG E310C FOR JUST ....$99USD

WE ARE SELLING THE SAMSUNG E330C FOR JUST ,,,,.... $128USD

WE ARE SELLING THE SAMSUNG E800C FOR JUST .....$189USD

WE ARE SELLING THE ALCATEL One Touch 501 FOR JUST....$39USD

WE ARE SELLING THE CALCATEL One Touch 311 FOR JUST......... $35 USD

WE ARE SELLING THE ALCATEL One Touch 511 FOR JUST ......... $49USD

WE ARE SELLING THE PANASONIC GD67 FOR JUST ............. $49USD

WE ARE SELLING THE PANASONIC GD92 FOR JUST $69USD

WE ARE SELLING THE PANASONIC GD90 FOR JUST ...... $69USD

WE ARE SELLING THE PANASONIC GD75 FOR JUST $79USD

WE ARE SELLING THE PANASONIC GD55 FOR JUST .....$79USD

WE ARE SELLING THEPANASONIC GD95 FOR JUST .......$79USD

WE ARE SELLING THE SIEMENS C45 FOR JUST ..........$39USD

WE ARE SELLING THE SIEMENS C55 FOR JUST $49USD

WE ARE SELLING THE SIEMENS M35i FOR JUST...... $59USD

WE ARE SELLING THE SIEMENS S45i FOR JUST .....$79USD

WE ARE SELLING THEC SIEMENS S40 FOR JUST..... $89USD

WE ARE SELLING THE SIEMENS SL42 FOR JUST..... $89USD

WE ARE SELLING THE SIEMENS ME4 FOR JUST $79USD

WE ARE SELLING THE SIEMENS SL45i FOR JUST ....$69USD

WE ARE SELLING THE SIEMENS S55 FOR JUST ....$69USD

mail and get back to us at :mobileflex222@yahoo.com

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