Yelp has reported better-than-expected advertising revenue in the second quarter of 2023, year on year.
Advertising revenue reached just shy of $322 million, which is a 14% increase from the second quarter of 2022.
The strong performance helped boost total net revenue up 13% year-on-year to $337 million, ahead of the Street consensus at $325 million.
Why we care. The increase in ad spend is positive news for the digital marketing sector as it shows that trust and stability is returning faster than was forecast following the slump triggered by the economic downturn.
Breaking down the numbers. Yelp’s strong performance in advertising has been attributed to a higher average cost per click (CPC), which was up 14% year-on-year. Higher average revenue per location across services and RR&O categories was also credited for driving the company’s success by Yelp bosses.
A change in behaviour. A shift away from brand advertising and towards performance marketing was noted by Yelp bosses. This is because the latter provides marketers a more efficient way to track and monitor ROI, according to the company.
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What has Yelp said? Jeremy Stoppelman, Yelp’s co-founder and chief executive officer, praised the company's performance in a statement:
Deep dive. Read Yelp's full Q2 2023 earnings report in full for more information.
The post Yelp ad revenue rises 14% as advertisers ‘shift towards performance marketing’ appeared first on Search Engine Land.
from Search Engine Land https://searchengineland.com/yelp-ad-revenue-performance-marketing-430420
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