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This statistic highlights Yelp’s Advertising Revenue Breakdown, split between Restaurant, Retail & Others, and Services, from Q1 2016 onwards.
Yelp’s advertising tools assist companies of all sizes in reaching a wide audience, advertising their products, and driving service conversion. They are a well-known online brand in the United States. Consumers trust their 200 million ratings and reviews of businesses in a variety of categories. They’re highly regarded in the US digital industry due to their ability to deliver value to both customers and businesses.
The advertising revenue of Yelp is divided into the following categories:
|Product Category||Revenue in Q1 2020||Revenue in Q1 2021||Revenue Share in Q1 2021|
|Beauty & Fitness||$28.8||–||–|
|Restaurant, Retail, and Others||–||$81.3||$37%|
|Home & Local||$91.2||–||–|
(All figures in millions, except percentages)
Yelp generates the majority of its revenue through the sale of advertising products. Businesses are charged on a cost-per-click (CPC) basis by Yelp. That is, whenever a user clicks on an advertisement, a fee is deducted from the business’s budget on the site. CPC prices vary significantly depending on the speciality and region. There are several places on its platform where an advertisement might appear. These may appear in search results or on rival company websites.
Yelp’s total advertising revenue decreased from $242.5 million in Q1 2020 to $222 million in Q1 2021, marking an 8% decline on a year-on-year basis.
Yelp’s Services revenue stood at $140.7 million in Q1 2021. The Services category accounted for 63% of the total revenue in Q1 2021.
Yelp provided a variety of relief incentives totalling $2.2 million and $4.6 million, respectively, to advertising and other revenue clients most impacted by the COVID-19 pandemic. These incentives generally took the form of waived advertising and membership costs. These incentives were accounted for as price concessions by the Company, which decreased the net revenue. They also delayed some advertising campaigns set to run from April to May 2020 and gave free advertising items worth $14.5 million during those months.
About Yelp, Inc.
Yelp Inc. was founded by Jeremy Stoppelman (CEO) and Russel Simmons in 2004. Its headquartered in San Fransisco, California. Both Jeremy Stoppelman and Russel Simmons were previously employed at PayPal.
Following PayPal’s acquisition by eBay, both of them went on to pursue other opportunities. While Simmons obtained an MBA at Harvard, Stoppelman experimented with a new start-up idea. In 2004, a year into their respective ventures, they both decided to partner again. Yelp filed for Initial Public Offering (IPO) in November 2011 and started trading on the New York Stock Exchange in March 2012, under the trading symbol ‘YELP’.
Yelp is a review site that allows consumers to explore and learn about local businesses such as cafés, spas, and home repair services. Users of Yelp may not only search for and evaluate companies, but they can also create a profile, become friends with other users, communicate on various online forums, and attend offline meetups. Local businesses, users, and content creators/contributors are Yelp’s target audience. By 2020, the company’s web pages had 43 million unique visitors while its mobile sites had 52 million unique visitors. Facebook, Google, Yahoo!, OpenTable, Foursquare, TripAdvisor, and Meituan are among Yelp’s top competitors.
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