Archived News 1998

05 October 1998

Internet poses threat to classified sections of major newspapers

A new Internet employment advertiser, SEEK Limited, is leading the biggest ever threat to the dominance of newspapers' classified advertising volumes.

Once described as the "rivers of gold" for newspapers, the classified sections are slowly being replaced by the net as a source of jobs for recruitment firms, companies and job-seekers.

After just five months of operations, SEEK currently has more than 200 recruitment firms and companies advertising more than 4,300 jobs on its site nationally.

Chief Executive of SEEK Limited, Mr Paul Bassat, said "SEEK and other Internet employment advertisers represent the long-expected threat to newspapers' dominance of this market".

With more than 70,000 job-seekers visiting SEEK's web site (www.seek.com.au) each month, online advertising is quickly gaining a reputation as a viable, cost-effective alternative to newspapers.

He added, "We find it amazing that John Fairfax's new chief executive, Professor Fred Hilmer, is reported to be sceptical about the future of the Internet (The Age, October 10). While Professor Hilmer said there was "too much hype about the Internet", Mr Lachlan Murdoch admitted last week the Internet was impacting on News Corporation's advertising volumes in Australia.

Mr Bassat said "recruitment firms are now actively embracing online advertising as it provides a cost-effective, inter-active medium in meeting and sorting out job-seekers, who display their credentials by writing legibly and using the latest technology".

A total of 10,000 job-seekers are registered with SEEK's site for the purpose of either lodging their resumes, gaining free daily emails of jobs that are available and applying for positions online.

"The Internet is the biggest threat newspapers across the world have faced this century, as the new technology will continue to replace print classifieds", concluded Mr Bassat.

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24 September 1998

Internet gives recruiters the edge

The Internet is changing the way recruiters do business as a growing number of companies use it to advertise vacancies and candidates increasingly send applications online.

According to SEEK Limited, Internet job sites are particularly important for high demand professions such as IT, where recruiters are competing to find qualified candidates.

"Speed, low cost and reach are the most common factors cited by recruiters when considering online advertising. Advertisers on the SEEK site, for example have reported receiving applications as quickly as 15 minutes after the position appeared," said Paul Bassat, Chief Executive of SEEK (www.seek.com.au).

Specialist IT recruiter, Icon Recruitment, reports that the number of online applications in response to advertisements published on the web has jumped from five to at least 50 per cent over the past 18 months. "The minute an application is lodged online, it appears on the recruitment consultant¹s computer desktop," said April Power, Resource Manager at Icon.

In comparison to the traditional print medium, employment advertising on the Internet is low cost, with rates anywhere between one to five per cent of an equivalent display advertisement. As well as reduced advertising costs, however, companies are finding that the whole recruitment process can be more efficient through quick turnaround of applications and less paperwork.

Rosemary Scott, Managing Director of Scott Training & Consulting considers privacy another benefit of online recruitment.

"The advantages of using a web site for recruitment are enormous, particularly as more and more people have access to the Internet. It is a confidential way for candidates to apply for positions, as opposed to ring or faxing, which is often very public. Although it is early days, it is gearing up to become a viable alternative to print advertising and may even replace it eventually," said Ms Scott.

Paul Bassat added: "In negative job markets where recruiters need an edge to source candidates, the Internet can extend a company's reach, both throughout Australia and internationally. Companies that are not already online or Internet proficient should consider updating their capabilities now to stay competitive as there is a lead time to get internal systems in place."

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