Recruitment Advertising Model Turned Upside Down by Game Changing P4P Model

    OTTAWA and TORONTO, July 28 /CNW/ - JobServe Canada is pleased to
announce the release of its revolutionary "Pay for Performance" (P4P) online
recruitment platform that is poised to revolutionize the way companies recruit
in both recessionary and expansionary times.
    Every once in a while along comes a product or service that changes the
whole way an industry works.
    Consider for a moment the impact of the jet plane on the transatlantic
liner business, or TVs on Cinema chains.
    One minute you have leading edge technology, next your product is
obsolete! Just ask Kodak about the impact of digital cameras!
    One of the most profitable businesses in the 20th century was the
newspapers and their "rivers of gold": the revenues from classified adverts.
    Mass markets were serviced by mass production and these mass markets
demanded mass marketing. At the time nothing was better than newspapers and
the grip they had over their readers.
    That is until the World Wide Web came along and as internet use grew,
more and more advertising dollars were transferred from print onto the net.

    According to internetworldstats.com:

    "Canada ranks as the 12th country in the world for Internet usage with
28.0 million users, over 80% of the total population. Over 50% of Canadians
connect to the Internet using a type of high-speed connection, compared to
just a third in the US. In addition, habits of online Canadians differ greatly
from Americans. In particular, 48% of Internet users connect at least three
times per day."

    So it's no wonder if you are looking to rent a house, buy a car or find a
job - the internet is where you look.
    Talking specifically about job advertising, Chris Klotz, founder of the
first internet job board in Canada said, "In the first instance job boards
were places to find job advertisements that looked just like they did when in
print. The extra convenience of the internet is that you can apply immediately
when you find the job using an online job search engine".
    "Both professional recruiters and job seekers quickly saw this was the
new paradigm, and although corporate recruiters have been slower to adopt, job
boards are the new business model for recruiting" Chris added.
    Newspaper's traditional classified revenues continue to fall as job board
revenues rise and this is due to recruiters substituting print with the
internet. Although newspapers were slow to recognize this shift, most now
offer web based versions of their classifieds.
    But the pricing model for online classified advertisements has remained
the same as the antiquated print model.
    This is where JobServe, the world's first job board, saw flaws in the
pricing model with the transition of the industry from print to online.
    The internet measures everything - who clicks where and when. So job
boards know how many candidates view each advert and how many applications
each job received. But job boards still charge the same for an advertisement
whether it gets 20 applications or none.
    The shift in pricing model will drive down revenues of job boards that
fail to perform, and could result in a further shakeout in the industry.
    In addition, corporate recruiters will be attracted to the model,
particularly to job boards which provide additional features like the ability
to filter out the best candidates.
    With more technology being applied to online recruiting, today's leading
brands are facing stiff challenge from the smaller, technically-driven job
boards.
    Klotz says, "The old 'pay and pray' pricing model was a legacy from the
print days, and JobServe have challenged it with a revolutionary 'P4P' model
(pay for performance)".
    "The future for the recruiting industry is not only online, but in only
paying for what is delivered. Recruitment agencies only get paid when they
make a placement, so we job boards should only get paid when we deliver
applications", he added.

    About JobServe

    JobServe Canada was formed in January 2007 as the result of the
acquisition of JobShark.com, Canada's largest independent job board.
    With its Canadian headquarters in Ottawa, Canada, and its global
headquarters in Essex, UK, JobServe also has offices in America, Australia,
and Thailand.
    JobServe was the world's first Internet Recruitment Service, formed in
late 1993 by Robbie Cowling.
    JobServe is part of the Aspire Media Group.
    For more information please visit www.jobserve.ca or
www.aspiremediagroup.net

For further information: Chris Klotz, CEO, JobServe Canada:
1-800-304-7573, Cell - [phone]