While friends and family referrals still have a considerable impact on people’s purchasing decisions, people turn to online reviews more often than ever—just one negative review can significantly hurt your sales.
On the plus side, customers’ reviews are an opportunity to understand people’s needs and improve your online reputation.
- Before purchasing a product or service, 97% of people consult Yelp reviews.
- About 20% of reviews on Yelp are fake.
- People aged 18–34 are the top Yelp users.
- Nearly 53% of Yelp users are college graduates.
- The average business rating on Yelp is 3.78.
- For every star earned on Yelp, companies increase their income by 5–9%.
Online reviews have become an essential aspect of today’s world. Take a look at the following general stats about Yelp and its users.
1. A whopping 97% of users purchase a product or service after visiting Yelp.
Consumers reported that they bought a product or service after they have seen it positively rated on review sites, such as Tripadvisor, Facebook, and Yelp. The majority of Yelp users say they placed an order right after visiting the website sometimes, frequently, or almost all the time. This number gives a clearer picture of how important online word of mouth marketing is.
2. According to Alexa, Yelp.com is the 60th most visited website in the US.
Yelp is one of the most popular review platforms in the US. Yelp usage statistics demonstrate that the platform is among the most visited websites. The search site traffic counts 60.4% in the US. Even other countries like India and Japan use Yelp — the search site traffic is 2.7% and 0.8%, respectively.
3. A massive 84% of people trust online reviews.
If you knew how many people use Yelp, TripAdvisor, or TrustPilot, you wouldn’t think that online reviews get lost all over the Internet. Nowadays, almost everyone regularly or occasionally reads online reviews. Yelp statistics prove that consumers believe random strangers on the Internet more than any product advertising.
4. On average, Yelp has 92 million unique mobile users monthly.
Before getting into a new restaurant or hotel, most American consumers do their research on Yelp. But, how many users does Yelp have? In total, we can count 142 million users on the platform, with 92 million of them using the mobile app. It’s not surprising that such an extensive audience checks and reviews restaurants from mobile rather than desktop.
5. Around 20% of reviews on Yelp are fake.
If you’re a business owner who cares about online presence, Yelp reputation management is an important aspect that can make your business blossom or fail. The key to a successful business is to be authentic. However, not all online reviews on Yelp are truthful. Some businesses get Yelp reviews for sale and destroy the credibility of online reviews.
6. Around 45% of customers check Yelp before visiting a business.
Additionally, about 63% of consumers say they check reviews on Google before visiting a business. Yelp ranks second, with roughly 45%. According to Yelp facts, the platform is still very relevant despite its fierce competitors. TripAdvisor earns third place — about 30% of people use this platform for online reviews. Facebook places fourth with 23% of users.
7. The average salary for a Yelp sales representative is $41,339.
According to Glassdoor, the Yelp sales representative salary ranges from $31,069 – $70,000. Besides, a sales representative at Yelp can earn up to $48,000 when factoring in bonuses and additional compensations. Yelp employees are responsible for providing these estimated figures.
Which generations use Yelp the most? Do Yelp users have a college degree? Read on the following Yelp statistics to find out.
8. About 30% of users aged 18–34 use Yelp.
As Yelp reported, this is not just a platform aimed at a younger demographic. Around 30% of users are between and 34, 36% are aged 35–54, and 33% are more than 55. According to Yelp fact sheet US demographics, the age range 35–54 is more eager to spend than older generations because they have higher income.
9. 53% of users on Yelp have a college background.
Most users have at least graduated from college, 20% of consumers are undergraduates, and only 19% have no college degree. This Yelp consumer demographic proves that most users with higher education are more likely to share their opinion on products and services on the platform.
10. About 18% of customers review restaurants on Yelp.
Restaurants get reviewed the most, along with home and local services (18%). This Yelp fact sheet reports that shopping (16%), beauty and fitness (11%), health (8%), and auto (6%) also constitute a significant part of Yelp’s reviewing space. Consumers do not only look for good places to eat, but they trust Yelp on other local services too.
Businesses use Yelp advertising to reach their customers faster. But how efficient is this advertising strategy? Which are Yelp advertising rates? See what the numbers say.
11. Advertisers will pay from $0.30 to $40+ per click.
When it comes to advertising, Yelp will charge your business based on the CPC (cost per click). Advertisers would pay less per click for food establishments, but are willing to pay more for competitive niches such as the law industry. With that said, it’s up to you to decide how much you are willing to put in Yelp advertising costs.
12. Google Ads is the leading platform for most advertisers, with a search cost of $2.69.
In the battle of Google vs Yelp advertising, Google is the best platform for businesses to promote their products and services. Yet, millions of consumers use Yelp to make purchase decisions, so it’s almost impossible to ignore the influence of this channel. The average Yelp ad cost is about $3–4 per click, while Google costs $2.69 for search and $0.63 for display.
13. In the last quarter of 2020, Yelp earned $222.62 million from advertising.
Statista reveals that only $4 million came from transactions. Understandably, advertising constitutes the most significant part of Yelp revenue. In the second quarter of 2020, the revenue figures gained from advertising decreased to $162.23 million due to the coronavirus outbreak. By the end of the year, the numbers quickly stabilized.
Companies started to use Yelp to improve their online presence, know people’s impressions of their products and services, reply to positive and negative comments, and much more.
14. On Yelp, the average rating across all kinds of businesses is 3.78.
While most consumer reviews tend to be positive, 40% of ratings are neither one star nor five stars. So, what is a good Yelp rating? If you want your business to beat the local competitors, you need to score an average of 4.5–5 stars. Therefore, any company with less than four stars is below average, and businesses with precisely four stars are considered average.
15. Yelp charges $600 per 1,000 impressions.
Generally, online advertising is 60 cents per 1,000 impressions, while Yelp business advertising costs are much higher. In fact, Yelp is charging local businesses 1,000 times more than the standard CPM rates. Even when compared to national ads, the company charges 100 times more for local businesses.
16. Businesses see an increase of 5–9% in revenue for every star gained.
Yelp effect on your business can be huge, considering that only a one-star difference can increase your revenue by 5–9%. However, it is only logical to assume that the reduction of positive online reviews will cause a star rating loss and, as a result, less revenue.
We hope that these statistics helped you understand how this platform affects your local business. Whether you’re running a small clothing store or a local restaurant, it’s important to acknowledge customers’ experiences and opinions. Listening to what customers have to say will help you improve your business.
Using Yelp can make a massive difference for your business, but be mindful of the high advertising costs. Is Yelp advertising worth the money? Well, take a look at these stats, and decide for yourself.
If you’re a company, Yelp gives you the benefit of claiming a business profile. As a result, your store or service will appear among customers’ search results.
As a business, you can access free and paid tools to connect with consumers looking for your products and services. The best option to be successful on Yelp is to use a combination of free and paid tools — you will get the recognition you need while staying within your budget.
Jeremy Stoppelman and Russel Simmons founded Yelp in 2004 in San Francisco. Both founders graduated with a degree in Computer Science at the University of Illinois.
After their graduation, they both started working as software engineers at PayPal. During their time at Paypal, Stoppelman and Simmons covered leadership positions in their mid-twenties. However, after eBay acquired PayPal in 2003, the two founders left the company and came up with their own business.
The platform offers a free membership if you only reply to positive and negative reviews, add photos, and create Yelp deals. However, most owners need more services for their business to be locally successful.
In this case, there’s a self-service package that offers targeted Yelp ads and removes competitors’ ads. Depending on your needs, you can also pay for a full service that gives you everything listed above, plus the possibility of adding videos for a better experience.
Nowadays, many people still use Yelp despite the fierce competition with Google, TripAdvisor, TrustPilot, and Facebook Reviews.
Small businesses and local business owners promote and advertise themselves on the platform. Potential customers looking for recommendations or reviewers are the biggest Yelp users. This platform aims to find great places locally to satisfy customers’ wants and needs.
Although TrustPilot and TripAdvisor are fierce competitors, Yelp still constitutes an integral part of online reviews in some countries, including the US, Australia, Canada, Denmark, Italy, etc.
The latest Yelp statistics reveal that the platform counts over 5 million business listing pages. This overwhelming number shows how Yelp is still an impactful tool for businesses and how customers are continually searching for excellent local services.