Rumor has it that Facebook is testing out a new service that could possibly make Craigslist a history. Two sources from within Facebook have revealed private information about the social media giant planning on a project that would directly compete with Craigslist. It is said that the project is likely to be finished sooner and we can expect the social networking giant announce the feature very soon.

With Facebook classified-ad services, users will be able to create ads for jobs, house rentals, and item sales, which will show up on their friends’ news feeds. However, it is said that this service will only target users based on certain criteria. Advertisers will also be able to add photos, links, or any other related information to their advertisements. In simpler words, whatever you do on Craigslist can be done with Facebook classified-ad service.

The service is expected to work very much like Facebook’s promoted posts. For instance, say that you have an apartment and you intend to give it out for rent. Using the new classified-ad service, you can create an ad by paying a nominal fee (less than $5) and your ad will start appearing in your friends’ news feed.

Back in 2007, with only 22 million users, Facebook had launched a similar service called Facebook Marketplace. However, it didn’t grow as expected and eventually Facebook handed it over to another company called Oodle in 2009.

We still haven’t got any confirmation on this, however, it would be great if you can let us know on what you think of classified ads on Facebook by adding your views in the comment section below.

[via]