The advertisements are grouped into categories or classes such as "for sale—telephones", "wanted—kitchen appliances", and "services—plumbing", hence the term "classified". Classified ads generally fall into two types: Some businesses use classified ads to hire new employees. One issue with newspaper classified advertising are that it doesn't allow images, [3] even though display ads, which do allow images, can be found in the classified section. In recent years the term "classified advertising" or "classified ads" has expanded from merely the sense of print advertisements in periodicals to include similar types of advertising on computer services, radio , and even television , particularly cable television but occasionally broadcast television as well, with the latter occurring typically very early in the morning hours.

Like most forms of printed media, the classified ad has found its way to the Internet, as newspapers have taken their classified ads online and new groups have discovered the benefits of classified advertising. Internet classified ads do not typically use per-line pricing models, so they tend to be longer. They are also searchable, unlike printed material, tend to be local, [ citation needed ] and may foster a greater sense of urgency as a result of their daily structure and wider scope for audiences.

Because of their self-regulatory nature and low cost structures, some companies offer free classifieds internationally. Other companies focus mainly on their local hometown region, while others blanket urban areas by using postal codes. In many cases, these specialized services provide better and more targeted search capabilities than general search engines or general classified services can provide. A number of online services called aggregators crawl and aggregate classifieds from sources such as blogs and RSS feeds, as opposed to relying on manually submitted listings.

Additionally, other companies provide online advertising services and tools to assist members in designing online ads using professional ad templates and then automatically distributing the finished ads to the various online ad directories as part of their service. In this sense these companies act as both an application service provider and a content delivery platform. Social classifieds is a growing niche.

Perhaps due to the lack of a standard for reporting, market statistics vary concerning the total market for internet classified ads. Newspaper's revenue from classifieds advertisements is decreasing continually as internet classifieds grow. As the online classified advertising sector develops, there is an increasing emphasis toward specialization. Vertical markets for classifieds are developing quickly along with the general marketplace for classifieds websites.

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