Wal-Mart vs. Craigslist: It's so on.

CNET reports today on the quiet unveiling of Wal-Mart’s free online classified ads. The retail giant’s listings (currently in beta) are powered by start-up company Oodle, who added its existing listings from more than 80,000 sites to Wal-Mart’s offerings.

Wal-Mart’s service, like Craigslist, allows buyers and sellers alike to post and search for the items they so desire, grouped by category in major US cities. However, the services are not identical: unlike Craigslist, advertisers can pay Oodle to have their products and services placed higher in search results.

Wal-Mart has started programs of this nature in the past only to discontinue them, including movie downloads. I think the overt paid placement listings might hinder Wal-Mart’s success in this project, since part of Craigslist’s appeal is in its lack of sponsored search results.

The average consumer searching for a coffee table is not interested in receiving ads—only in finding the best coffee table for the cheapest price. For now, I’ll stick with Craigslist and see how this plays out.