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can you elaborate on "Advertisement doesn't work well because people will just go to the best reviewed shops". Why can't yelp just runs non-restaurant related a
by thesimpsons1022 11y ago
can you elaborate on "Advertisement doesn't work well because people will just go to the best reviewed shops". Why can't yelp just runs non-restaurant related ads, ie for samsung or something. As long as they have traffic, those ads will have views.
- jsprogrammer 11y ago"As long as they have traffic, those ads will have views." There may not be any traffic after they slap a giant Samsung ad on their site.
- timr 11y agoThey actually just removed their so-called "brand advertising" (which is what you're describing), because it was a small percentage of their revenue stream. They claimed it wasn't worth pursuing because they make for a bad experience on mobile, which is where their traffic growth is (their web traffic is stagnating). It was definitely their highest-margin form of advertising, and part of why the company's stock is being punished. It isn't clear to me that Yelp, as it exists today, can ever be profitable -- they need to hire expensive sales people to cold-call businesses to sell ads that run at CPM rates that are already incredibly high. Yet they can barely break even. It's not going to be pretty as their ad rates are forced to become market competitive.