Thursday, October 29, 2015

Yelp Winds Down Reliance on Display Ad Revenue

In an effort to improve the user experience and focus on mobile Yelp is reducing the number of display ads on its site. Users primarily access the site via the mobile web or the app so they are directing most of their attention to optimizing user experience via mobile. Given the nature of their business and the importance of a user friendly mobile experience it seems like a smart move. They are able to use native advertising effectively in a way that is beneficial both for users and clients. The better user experience on the app also reduces reliance on google and helps them compete with Google in the restaurant search space as customers increasingly use the app to search for restaurants rather than traditional search engines. The better user experience encourage customers to use Yelp as a search engine which should result in the ability to grow revenue via higher prices while winding down display ad real estate on its site.

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