An increase of 13% brought Yelp’s advertising income to a new all-time high of $1.28 billion in the last quarter of 2023.
The average cost per click (CPC) during the course of the year climbed by 9%, while the number of clicks on advertisements for the year increased by 5% year-over-year.
– In the year 2023, Yelp stated that the advertising revenue from businesses that provide services reached a record-breaking $793 million. This is a 14% increase from the previous year. In particular, the Home Services category stood out with a year-on-year increase in yearly revenue growth of twenty percent.
– As a result of an increase in advertiser demand, Yelp reported a 10% gain, bringing its total revenue to a record $483 million.
– When taken as a whole, these channels were responsible for around fifty percent of Yelp’s advertising revenue in 2023. –
– Income from self-service restaurants increased by around twenty percent year over year, while income from multiple locations increased by approximately fifteen percent year over year.
How Did The Yelp Respond
Yelp’s co-founder and chief executive officer, Jeremy Stoppelman, issued the following statement in response to the news:
Looking ahead, we’re increasing our focus on our Services categories in 2024 as we execute on a robust product roadmap to build Yelp into the best place for consumers to connect with trusted service pros and drive more quality leads to advertisers.
Our team has demonstrated on multiple occasions that concentrating on our product-led strategy can result in long-term growth, and we continue to have faith in the tremendous opportunities that lie ahead to increase shareholder value over the course of the organization’s existence.
Which Sector Will Benefit The Most
According to Yelp’s growing number of ad clicks, which indicates a positive return on investment, the platform is a great competitor for your advertising budget this year. Especially important is the fact that Yelp is strategically changing its focus to the Services sector in order to produce more quality leads for advertising. This is especially significant for firms that are in the Services industry.
