Yelp ad revenue rises 14% amid ‘performance marketing shift’ 

Yelp has reported better-than-expected advertising revenue in the second quarter of 2023, year on year.

Advertising revenue reached just shy of $322 million, which is a 14% increase from the second quarter of 2022.

The strong performance helped boost total net revenue up 13% year-on-year to $337 million, ahead of the Street consensus at $325 million. 

Why we care. The increase in ad spend is positive news for the digital marketing sector as it shows that trust and stability is returning faster than was forecast following the slump triggered by the economic downturn.

Breaking down the numbers. Yelp’s strong performance in advertising has been attributed to a higher average cost per click (CPC), which was up 14% year-on-year. Higher average revenue per location across services and RR&O categories was also credited for driving the company’s success by Yelp bosses.

A change in behaviour. A shift away from brand advertising and towards performance marketing was noted by Yelp bosses. This is because the latter provides marketers a more efficient way to track and monitor ROI, according to the company.

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What has Yelp said? Jeremy Stoppelman, Yelp’s co-founder and chief executive officer, praised the company’s performance in a statement:

  • “Yelp’s record-breaking top-line second quarter results are a testament to our increased product velocity and consistent execution across the company. For the ninth consecutive quarter, we delivered double-digit growth.
  • “Net revenue reached a new high driven by record advertising revenue across categories. Self-serve and multi-location accounted for more than half of our advertising revenue for the first time, reaching a milestone that reflects our long-term strategy to drive growth through our most efficient advertising channels.”
  • “As we remain focused on enhancing our already strong product pipeline, we’re confident in our ability to gain market
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Walmart ad revenue hit $2.7B as execs eye higher scale

Dive Temporary:

  • Walmart’s U.S. advertising and marketing division, Walmart Join, grew 41% calendar year-over-year in the fourth quarter, in accordance to an earnings assertion.
  • The retailer’s world-wide advert operations ended up up 20% more than the period and jumped just about 30% in 2022, creating $2.7 billion for the whole 12 months, executives explained. Join and FlipKart Ads, an India-centered business enterprise, were attributed as the greatest expansion drivers. 
  • Strong efficiency from retail media bets supported balanced profits around the essential holiday period of time, nevertheless Walmart warned of uncertainty in advance in 2023 that marketing could aid ease.

Dive Perception:

Walmart’s marketing just take for 2022 arrived at $2.7 billion, demonstrating that demand from customers for its retail media networks remained resilient irrespective of a sharp inflationary interval that led several brand names to pull again on shelling out. Advertisement sales progress in Q4 was notably robust in relation to Walmart Join, the company’s U.S. division that expended considerably of very last yr expanding its infrastructure and partnership roster in parts like ad tech and social commerce, including by means of a tie-up with TikTok. 

U.S. comp gross sales for the retailer climbed 8.3% in Q4, though e-commerce was up 17% YoY, bolstered by the grocery class. Even with the comparatively wholesome holiday break takeaway, Walmart warned that higher costs and ongoing client pressures were being foremost it to choose a cautionary stance for 2023.

Advertising and marketing could stay a brilliant location as choppy waters endure next a chaotic couple pandemic years. Executives have referred to as out strengths in advertising and marketing extra usually to investors as retail media turns into a magnet for model dollars and a more important generator of revenue for Walmart. 

“We’re driving a lot of modify in our business,” claimed

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