Here’s a chart, via MediaMemo at allthingsd, showing the precipitous drop in newspaper classified ad revenue over the past few years. Peter Kafka theorizes that the drop coincides with craigslist’s becoming mainstream. It looks like the first drop came in 2000-2001, right after craigslist.org expanded into 13 cities. By 2005, when the second drop came, craigslist had a presence in 187 cities/metro areas. Hmmmm.

Decline of newspaper classified advertising
Decline of newspaper classified advertising – mediamemo