Yelp Reports Advertising On Its Platform Yields A 269% ROI

by • May 12, 2016 • Breaking NewsComments Off on Yelp Reports Advertising On Its Platform Yields A 269% ROI3429

Yelp – the crowd-sourced reviews platform – is often overlooked by marketers, who are too busy being lured away by Facebook’s massive user-base and excellent targeting options. Facebook is without a doubt leading the way for social advertising, but Yelp recently disclosed figures that could give marketers and local advertisers a bit of a jolt.

On its quarterly earnings call last week, Yelp said that it had more than 121,000 local advertisers on its platform, and has earned a combined revenue of $138.1 million. That’s a 40% growth compared to last year. Yelp also boasts a year-over-year advertiser retention rate of 76%, a staggering number backed up by an impressive 269% ROI, generated through Yelp’s advertising. According to the figures, the average advertiser account spends $267 on CPC or CPM ads that yield an estimated $983 in return.

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Yelp also reports a revenue of $159 million, exceeding expectations from financial analysts.

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Of course, numbers are to be taken with a pinch of salt. Revealing such an outstanding ROI could result in more marketers flocking to Yelp to spend their advertising budget there, which means more money going into Yelp’s pockets. Skeptical voices have been aired, underlining the lack of transparency in the method used to come up with the valuation of ad-driven leads.

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Nevertheless, as peer reviews are trusted more than branded messages and ads are, Yelp seems to be en route for steady and healthy growth. MarketingLand reports that half of Yelp’s 102 million reviews have been shared in the last 2.5 years, proving that the platform is gaining steam.


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