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Yelp’s ad revenue increased 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%.

Services sector. Yelp reported a record-breaking $793 million in advertising revenue from Services businesses in 2023, marking a 14% increase from the previous year. The Home Services category stood out in particular with a rise of 20% year-on-year in annual revenue growth.

Restaurants, Retail and Other sectors. Yelp reported a 10% increase to a record $483 million, driven by growth in advertiser demand

Self-serve and Multi-location. Together, these channels accounted for approximately 50% of Yelp’s 2023 advertising revenue. Self-serve revenue increased by approximately 20% year over year and multi-location revenue grew by approximately 15% year over year.

What Yelp is saying. Jeremy Stoppelman, Yelp’s co-founder and chief executive officer, said in a statement:

• “Looking ahead, we’re increasing our focus on our Services categories in 2024 as we execute on a robust product roadmap to build Yelp into the best place for consumers to connect with trusted service pros and drive more quality leads to advertisers.”
• “Our team has repeatedly shown that focusing on our product-led strategy can drive durable growth, and we remain confident in the significant opportunities ahead to drive shareholder value over the long term.”

Why we care. Yelp’s increasing ad clicks, indicating a positive return on investment, make it a strong contender for your ad spend this year. This is especially noteworthy for brands in the Services sector, as Yelp is strategically shifting its focus to this area to generate more quality leads for advertisers.

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Deep dive. Read Yelp’s full Q4 2023 earnings report in full for more information.

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