Yelp saw an ad revenue increase by 13% to a record $1.28 billion in the final quarter of 2023. Ad clicks for the year experienced a year-over-year growth of 5%, while the average cost per click (CPC) increased by 9%.
The Services sector was a standout, with Yelp reporting a record-breaking $793 million in advertising revenue from Services businesses in 2023, marking a 14% increase from the previous year. Home Services particularly showed a rise of 20% year-on-year in annual revenue growth.
The Restaurants, Retail, and Other sectors also saw a 10% increase to a record $483 million, driven by growth in advertiser demand.
Self-serve and Multi-location accounted for around 50% of Yelp’s 2023 advertising revenue. Self-serve revenue increased by around 20% year over year, and multi-location revenue grew by approximately 15% year over year.
According to Jeremy Stoppelman, Yelp’s co-founder and CEO, the company plans to focus more on Services categories in 2024. He noted that the team’s focus on their product-led strategy has driven durable growth, and he remains confident in the significant opportunities ahead to drive shareholder value over the long term.
As for why this matters, Yelp’s increased ad clicks and focus on the Services sector make it a strong platform for ad spend. Brands in the Services sector should take note of Yelp’s strategic shift to this area to generate more quality leads for advertisers.
For a deeper understanding, you can read Yelp’s full Q4 2023 earnings report.
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