The collapse of classified advertising revenues has been accelerated by recession, but in spite of the hopes of most publishers they will never recover - and the pricing structures for online classifieds will never make up for the shortfall. Here in the UK, local newspaper publisher Newsquest (part of Gannett) is the latest to declare results with classified revenues down by almost half (45.2%) year on year. Second quarter revenues overall were not much better, at 36.9% down. The migration of marketing activity away from newspapers is something we've been tracking for over a decade, yet the newspaper industry (and its investors) have remained consistently slow at developing new revenue and product strategies both online and offline. For the sector that pioneered web publishing in the early nineties, and showed such promise at transitioning into the digital economy, the lack of continued innovation has come at the most heavy price.