It depends on which type of classified ads you're refering to. Online or print ads. I run quite a few ads on newspapers and magazines to advertise my websites and I have to tell you that a good ad in the right publications can get you a lot of prospects and customers at a fairly decent price.
Now regarding online classified ads, I used to run ads on AOL, classifieds2000, and Yahoo and they were quickly becoming useless. More people would contact me selling stuff than anything else. But then pay per click search engines came along. That's were I put a large part of my advertising budget every month nowadays and I no longer use online classifieds.
You may want to consider giving PPC's a try!
Good luck!
Alex
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