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- Advertising on Yelp:
What you should consider. (00:00):
undefined
This post aims to provideyou with unbiased feedback
and insights into Yelp'sadvertising platform
before you commitadvertising dollars to it.
Yelp provides several paidsolutions from page upgrades
with many features that enhance your page
(00:20):
to advertising solutions.
And this post is explicitlyfocused on Yelp ads
because that's where theresults will come from
versus page upgrades.
Not that page upgrades are not helpful,
but those paid features won't help you
scale sales and profit.
Conversely, ads will get your company
in front of potentialprospects that are on Yelp.
(00:41):
The question however is, is it worth it?
I hope this post helps you answer that
based on your current situation.
Hi everyone, I'm Toby Danylchuk
with 39 Celsius Web Marketing Consulting.
We're a digital marketingagency in Temecula, California,
just outside LA and San Diego.
And briefly, before weget into the content,
(01:01):
just a reminder that ifthis video is helpful
or insightful, please giveme a like on the video
or post a question or a comment.
And don't forget tosubscribe to my channel.
And because I do this for a living,
if you need help improvingyour business's presence online
and want more leads in salesfrom digital marketing,
(01:22):
please reach out to menow at toby@39celsius.com
and let's discuss your project.
So, are Yelp ads worth it?
Yelp advertising can be an effective way
for businesses to reachpotential customers,
but it's not without its drawbacks,
and there are moreeffective options out there
for many businesses.
(01:42):
But some of the most common concerns
with Yelp ads include the following.
First, limited targeting options.
While Yelp allowsbusinesses to target users
based on location and with keywords,
the targeting optionsare not as sophisticated
as those offered by otheradvertising platforms
(02:02):
like Google Ads or Facebook Ads.
This can make it moredifficult for businesses
to reach their ideal customers.
Second, mixed reviews on ad performance.
Some businesses reportsuccess with Yelp advertising,
while others claim they didnot see significant increases
in traffic or sales.
And this inconsistencyresults can make it difficult
(02:25):
for businesses to justify the expense.
Third is the competition.
Yelp ads often appear alongsidecompetitors' listings,
which means that users maystill choose to patronize
a different business evenif they click on an ad.
And this can be frustratingfor businesses that invest
in advertising, only tolose potential customers
(02:48):
to their competitors.
Fourth are negative reviews.
Yelp is well-known for itsuser-generated reviews,
and businesses with negative reviews
may struggle to benefit from advertising.
Potential customers may bedeterred by negative reviews
even if a business has aprominent ad placement.
(03:10):
Number five, lack of ad transparency.
The ad platform lacks transparency
into what is producingsales and conversions
and what is not.
But don't take my word for it.
As you go through this video,
don't forget to read the comments
at the bottom of my blogon this specific post.
(03:30):
There are dozens of comments on the blog
from past Yelp advertisers andtheir firsthand experiences.
But one thing is certain.
Interest in Yelp advertisinghas been steadily declining
for several years.
Below is a recent Google Trends graph
highlighting decliningsearch interest in Yelp ads.
So first, where does yourtarget audience hang out?
(03:54):
Does your ideal customer visit Yelp often?
Are you not sure?
Study your competitors' Yelp presence.
Make a list of thebusinesses similar to yours
in terms of products and services,
target audience, andyour geographic location.
Consider both directand indirect competitors
and search for their Yelp profiles.
(04:14):
Are the profiles filled out well?
Do you see ads from yourcompetitors on Yelp?
Not that your competitors'strategies are the best
for your business, but ifnot many in your local market
have much of a presence there,
then you should consider that.
Next, be clear about your goals,
clearly defined advertising goals,
(04:34):
such as increasing brandawareness, driving sales,
or acquiring new customershelps you stay focused
on what you want to achievewith your advertising efforts.
And when you clearlyunderstand your objectives,
you can dedicate resources
such as time and money more effectively.
(04:54):
This helps you maximizeyour return on investment
by prioritizing tasks andactions that directly contribute
to achieving your goal.
And at the end of the day,
it helps maximize your cash flow.
After all, the last thing you want
is negative cash flow from advertising.
For example, if you havespecific sales goals,
(05:15):
you might not be ableto achieve those goals
using Yelp ads for various reasons.
Perhaps there isn't enough traffic on Yelp
to achieve your sales goals,
or the cost is beyond your budget.
There's too much competition,
or your customer just isn'ton Yelp looking for you.
Next, let's discuss thegeotargeting options
(05:36):
of Yelp ad campaigns.
Yelp provides a coupleof options you can target
based on the following:
zip codes, by city, (05:41):
undefined
by neighborhood, or you can set a radius
with a minimum of a five-mile radius,
but not all businesseshave the same geotargeting
available to them.
For businesses that havethe search volumes in Yelp,
you might see these twooptions in the table.
(06:03):
And for other businesses,you may only see the option
for targeting based on aradius with no other options
like city, zip code, or neighborhood.
Below is an example for a spa business.
If your target market issmall, geographically,
let's say, within a fewmiles of your location,
you may have difficultyreaching enough customers,
(06:23):
and likely, you'll have wasted ad spend
since the smallest radiusyou can target is five miles,
which means you'll be showing your ads
too far away from your business.
From a reporting perspective,
Yelp is not for you if you want data.
There's little you canchange to affect performance
(06:44):
other than changing theactual geographical area
of where your ad show, your budget,
and the keywords you're targeting.
Below is an example of what Yelp shows
regarding where ads show forthis particular business.
In this particular case,it's for a business
in the Houston Heights area.
These data are interesting,
(07:04):
but they're not helpful or actionable.
What would be beneficial is to see
where the actual conversionsor the phone calls
were coming from, not justwhere the ads were served.
In this case, the business's clients
are typically within athree to five-mile radius.
But notice the red hot spotto the south, near Pearland.
(07:24):
This is likely wasted ad spend.
This area is 25 miles away,and the drive can take anywhere
from 30 minutes to an hourdepending on the time of the day.
But we'll never know ifthe advertising in Pearland
is worth it since we cannotsee conversion data on the map.
In comparison, in Google Ads,
you have greater flexibilityin your geotargeting
(07:46):
and transparency on whatgeo areas drive results.
For example, in Google Ads,
you can see whereconversions, phone calls,
clicks, and impressions arecoming from, geographically.
Then you can bid moreaggressively using bid modifiers
for areas you know that convertmore searchers to customers,
(08:08):
making your ad spend asefficient as possible
and, thus, eliminating wasted ad spend.
Keyword targeting.
What keywords or topic isYelp showing your ads for?
Similar to Google ads,
you can choose keywords for your business.
Here's an example of a plumber.
Like the geotargeting issueI talked about earlier,
(08:29):
there's minimal transparencyin what keywords
or topics your ads are showing for.
Some of your keywords perform well,
and some just burn your budget.
But you'll have no idea in Yelp ads,
and unlike Google Ads whereyou have complete control
and transparency with keywords and topics,
you are limited in the ad platform.
(08:51):
And that's the scary part, right?
How much ad money areyou wasting on keywords
or topics that are notproducing sales and profit?
I would imagine that Yelpdoesn't show that to advertisers,
because if it did,advertisers would likely spend
a fraction of what they could be spending
once they uncoveredunderperforming keywords
and stopped using those.
(09:14):
Next, what is the costto advertise on Yelp?
That is a common question.
First of all, Yelpcharges you based on CPC,
or cost per click.
The CPC you pay varies widely.
Advertisers can pay aslow as 30 cents per click
for some food establishmentsand more than $50 per click
for more competitive nicheslike personal injury law.
(09:35):
You can choose your ad budgetand set it as low as $5 a day.
Generally speaking, Yelp costper click in some industries
is less than Google ad search campaigns,
but Yelp also provides, as I mentioned,
less ad efficiency and effectiveness.
However, suppose you're ina highly competitive niche
(09:56):
where the cost per clickis very high in Google
as it is in personal injury law
or leak detection for plumbers.
In that case, you mayconsider adding Yelp ads
as part of your marketing mix in addition
to what you're running inGoogle Ads or Facebook.
And here's an anecdotal example
of a personal injury law firmusing Yelp ads and Google Ads.
(10:20):
The cost per lead comingfrom Yelp was slightly lower.
And for leads, we didn't countleads as Yelp counts them
but instead as calls and messages.
Remember that the personal injury niche
is highly competitive, one ofthe most competitive online.
$50 per click on Yelp, 200 to$900 per click in Google Ads.
(10:42):
However, for many other businesses,
the competition obviously is less fierce.
Next, Yelp campaign performance metrics.
The first chart hereshows the leads breakdown,
that "leads" in quotes.
And I put "leads" in quotations
because that is a looselydefined term with Yelp.
Most of what Yelp callsleads, I would not call leads.
(11:04):
Most business owners wouldnot describe them as leads.
I define a lead forthis particular business
as someone who booked an appointment,
who called the businessand wanted to know more
about the company orsubmitted a form online.
I estimate that only, probably, 10 to 15%
of what they call leads are true leads,
but the data do look lovelyin a chart, so there is that.
(11:28):
Very few directions andmap views are legit leads.
Many of those may be repeat customers
or people just checking tosee how far away you are
from them and whetherit's worth the drive.
Similar situation with website visits.
Many people wanna learn more about you,
but a low percentage areconverting to actual leads
(11:49):
such as booked appointments.
So what does Yelp do well?
Well, Yelp does a good jobwith SEO in ranking its pages
in Google searches,which means potentially,
more exposure for you as a Yelp advertiser
but not much more.
Many queries in Google willshow Yelp pages appearing
at the top of the organic listings.
(12:11):
For example, below are the search results
in Google for the query,"med spas near me."
Yelp is the firsttraditional organic listing,
so it's pulling in trafficfor Google searches,
which can benefit you, and of course,
your competitors too.
But don't expect yourbusiness's Yelp pages
to rank in Google.
Oh, no.
(12:32):
Most of Yelp's pages ranking in Google
are its category pagesor its search pages,
not individual business pages.
The key point is that ifyou're advertising on Yelp,
you can capture more traffic
than just Yelp's internal traffic.
In this case, the organic traffic
that's coming from Google as well.
But there's diminishingreturns for Yelp from Google.
(12:54):
However, Yelp's presence inGoogle continues to diminish
as Google maximizes its own opportunities
on its search results pages.
Because Google is dominating the top part
of its search pages so wellwith its own properties,
like local service ads, Google Ads,
Google Local Packs, featured snippets,
ranking in position zero and more,
(13:15):
it's increasingly difficult for Yelp
to continue to acquire non-paid traffic
from Google organic searches and, thus,
deliver more traffic to Yelp advertisers.
This trend with Yelp'spages ranking in Google
is most evident with theservice-based businesses
where Google shows thefollowing properties
(13:36):
ahead of Yelp pages.
Google Local Service Ads,followed by Google Ads and PPC.
Then followed by a local threepack of organic listings.
Google pushes the Yelp organiclistings way below the fold
and below its own properties.
So, in summary, overallpositives of Yelp ads.
Yelp ads will increase your exposure
(13:57):
inside of the platform itself.
And without Yelp ads, you won'treach as many new prospects.
Ad options have become more flexible
for advertisers removing contracts.
You can pay-as-you-gooptions are available
in no long-term contracts.
Page upgrades and ads.
Number three, there'sawareness among consumers
(14:17):
in specific industries thatYelp is a source for reviews.
That's subjective, of course.
So Yelp will likely maintain
its own internal traffic for some time.
However, Google reviews inmost cases take precedence
over Yelp reviews withconsumers as Google reviews
show right in search results.
(14:38):
Number four, lower cost perclick in some industries
compared to otherchannels like Google Ads.
Number five, Yelp ranksits own page as well
within Google, although this,
as I mentioned earlier, is diminishing.
Overall negatives.
There's no transparency in what keywords
or topics you're spendingyour ad dollars on with Yelp.
(14:58):
Number two, the Yelp app skewsto a younger demographic,
which may not align withyour target audience.
The younger demographic was uncovered
in a survey we ran a while back,
and the link is in the show notes there.
Number three, lack oftransparency in the ad platform
to cut back on wasted ad spend.
Number four, difficult toverify the actual economic value
(15:21):
of leads coming from Yelp ads compared
to other paid channelslike Google and Facebook.
So to wrap this up, ifyou're still trying to decide
what's the right decisionhere with Yelp ads,
visit my blog post on thisand read all the comments
I've had over the yearsof past Yelp advertisers,
and their experiences with the platform.
(15:41):
And if you need, still, more feedback,
reach out to me at toby@39celsius.com,
or visit me at my website, 39celsius.com
and schedule a 15-minute call with me.
We have over 20 years ofexperience in digital marketing
and can help you take yourbusiness to the next level.
But if you just havemore marketing questions,
(16:01):
just leave a comment or email me again
directly at toby@39celsius.com.
And if this video is helpful,
don't forget to give me a like, share it,
or comment below, and until next time,
I'll see you on the web.