Newspaper Classifieds lose to Craigslist

This chart at Silicon Alley Insider shows the conversion of the billions of dollars of newspaper classified revenue into millions of dollars of revenue for Craigslist.
When I worked at some large newspapers, it became clear that we couldn't possibly compete with Craigslist's free online classified listings. We watched our classified revenue plummet while losing marketshare to Craigslist, Zillow, Trulia, Cars.com and others. Meanwhile, some managers clung to a strategy destined for failure: online upsells from ever-decreasing print sales. Finally, partnering with the online pure-plays became the last great hope, but why would anyone go to Monster's jobs listings through another site? It all comes down to where the online community is. As long as newspapers continue to attract a large enough audience and utilize effective cross-promotion, they should be able to hold on to some classified revenue, but it will never be the billions they once garnered as the largest distribution source for advertisers when print was the only game in town.