Yelp Statistics: Demographics, Advertising, Categories

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.

Top Yelp Statistics: Editor’s Choice

  • Before purchasing a product or service, 97% of people consult Yelp reviews.
  • Online reviews are trusted by 91% of individuals as much as family recommendations.
  • About 20% of reviews on Yelp are fake.
  • People aged 18–34 use Yelp the most.
  • Nearly 60% of people on Yelp are college graduates.
  • On Yelp, around 18% of consumers review restaurants.
  • Advertisers will pay anything from $0.30 to over $40 for each click.
  • For every 1,000 impressions, Yelp charges $600.
  • The average business rating on Yelp is 3.78.

Yelp Statistics for 2022

Online reviews have become an essential aspect of today’s world. Take a look at the most recent stats about Yelp and its users.

1. 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 whopping majority of Yelp users say they placed an order right after visiting the website sometimes, frequently, or almost all the time. The latest Yelp survey gives a clearer picture of how important online word of mouth marketing is.

2. According to Alexa, Yelp is the 74th most visited website in the US.

It’s no secret that Yelp is among the most visited websites in the US. Although the website has been dramatically losing positions over the past months, the search site traffic has increased up to 64.3% in the US.

This Yelp fact sheet shows that this is not just a platform aimed at the US demographics alone. Even other countries like India and China use Yelp—their number of visitors account for 4.6% and 1.7%, respectively.

3. A massive 91% of people trust online reviews as much as personal recommendations.

While personal recommendations from family and friends are still the most trustworthy type of promotion, online reviews are slowly making their way up the ladder.

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, the vast majority of consumers regularly or occasionally read online reviews. Shoppers 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 over 90 million Yelp monthly active users on mobile devices. 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 brand is to be authentic, which is the same for a business on Yelp. However, not all online reviews on Yelp are truthful. In fact, these Yelp facts show that most businesses get Yelp reviews for sale and destroy the credibility of online reviews.

6. 45.18% of customers check Yelp before visiting a business.

Additionally, 63.6% of consumers say they check reviews on Google before visiting a business. Yelp ranks second, sitting at slightly over 45%.

As of today, Yelp’s worth is still hanging on despite its fierce competitors. TripAdvisor and Facebook are right behind, earning third and fourth place, respectively.

Yelp Demographics

Which generations use Yelp the most? Do users on Yelp have a college degree? Read on the following facts and stats to find out.

7. 30% of users aged 18–34 use Yelp.

As Yelp reported, this platform encompasses people of all ages. While a good three in ten users are between 18 and 34, 36% are aged 35–54, and 33% are more than 55.

However, the 35–54 age group is more eager to spend than older generations because they have higher incomes.

8. 60% of users on Yelp have a college background.

Yelp user demographics prove that most users with higher education are more likely to share their opinion on products and services on the platform.

Most users have at least graduated from college, 20% of consumers are undergraduates, and the remaining 20% have no college degree.

9. About 18% of customers review restaurants on Yelp.

Restaurants get reviewed the most, along with home and local services. These Yelp statistics report 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.

10. 98% of Australians read an online review before purchasing a product or service.

Although the history of Yelp can be dated back to 2004, Australia started using the platform not so much after. In fact, Yelp launched in Australia in November 2011. Today, Yelp is available in over 35 countries and in 42 different languages.

Almost every Australian consumer is likely to conduct thorough research before making a purchase. In fact, the vast majority of customers in the country (94%) believe that online reviews are reliable.

Yelp Advertising By the Numbers: Reviews and Costs

Businesses use Yelp advertising to reach their customers faster. But how efficient is this advertising strategy? How much does it cost to advertise on Yelp? 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 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 into the overall Yelp advertising cost.

12. Google Ads is the leading platform for most advertisers, with a search cost of $2.69.

When comparing Google vs Yelp, Google Ads 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.

In comparison, the price range on Yelp goes from $3 to $4 per click, while Google costs $2.69 for search and $0.63 for display. Notably, Google Ads is a much cheaper choice for your business.

13. In the second quarter of 2021, Yelp earned $244.96 million from advertising alone.

Statista reveals that less than $4 million came from transactions. Understandably, advertising constitutes the most significant part of Yelp revenue.

Compared to 2020, the revenue gained from advertising decreased due to the coronavirus outbreak. However, these figures will most certainly see a slight increase in the following years. 

14. Yelp charges $600 per 1,000 impressions.

Generally, online advertising is 60 cents per 1,000 impressions. However, the Yelp advertising price is 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.

Yelp for Business: Market, Revenue, and More

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.

15. As of March 2022, Yelp registered a market cap of $2.49 billion.

Market capitalization, also known as market cap, helps you understand the overall value of a company.

Due to the influence of the COVID-19 pandemic, Yelp reached its lowest point in October 2020, at only $1.44 billion. Even though the market cap slowly recovered in 2021, it is still far behind the pre-pandemic numbers.

16. Yelp’s market share account for 0.67%.

Yelp ranks 14th in the online review management category, with 3,887 companies using this platform. Popular brands such as Coldwell Banker, Hilton, and Invisalign are using the review platform on a daily basis.

Trustpilot has the highest market share of all review websites, standing at 23.25%. Shopify Product Reviews come right behind, at 15.99%.

17. In 2020, Yelp’s income was $872.93 million.

According to the latest Statista report, Yelp’s annual revenue hit an all-time high of $1,014.19 million in 2019. However, with the pandemic forcing restaurants, bars, and other companies to close down, Yelp’s income has dropped to lower than $900 million. 

Considering that Yelp is mainly for checking restaurants, it’s no surprise that the global COVID-19 outbreak has severely impacted the platform.

18. Bottega Louie has racked up over 17,000 reviews on Yelp.

The most recent analysis reported that Bottega Louie got more than 17,000 reviews on Yelp—the highest figure ever experienced on the platform.

Phil’s BBQ and Founding Farmers Washington are among the most reviewed restaurants on Yelp, taking up the second and third positions, respectively. Katz Delicatessen and Bacchanal Buffet complete the top five.

19. 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-star. So, what is a good Yelp rating?

If you want your business to beat the local competitors, these fast facts about Yelp demonstrate that 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.

Yelp Statistics: The Takeaway

We hope 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. Hopefully, these numbers shed some light on it and helped you make an informed decision for your brand.

Frequently Asked Questions

Is Yelp still relevant?

Despite being over two decades old, Yelp is still widely used in the US. The platform boasts over 73 million new users on mobile and over 100 million unique users on the website every month.
These numbers are clear—Yelp will be one of the most influential review platforms out there for a long time. Yelp is not only a great tool for customers, but it is a fantastic way to spread awareness about your local business.

How to use Yelp for business?

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.

What is Yelp used for?

Thanks to Yelp, potential customers can easily discover and connect with local businesses to request a quote, make a reservation, or join a waitlist. On the other hand, local businesses of any size use this platform to make themselves known in the local market.
Yelp makes it much easier for users to check online reviews before purchasing a product or service from a specific company.

When was Yelp founded? 

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.

How does Yelp make money?

Although users can browse and post online reviews for free, Yelp earns a considerable income from selling targeted ads to businesses (restaurants, cafes, spas, nail and hair salons, etc.) listed on the platforms, commissions from partnerships, and monthly subscriptions. In short, Yelp operates as an aggregator business model.

Is Yelp free for business owners?

The Yelp Business page is not only easy to set up, but it comes entirely for free. So, local companies can make themselves a name on the platform without having to spend a dime. Businesses can also choose to sign up for Yelp Ads and set their own budget at their convenience. In fact, there is no contract or commitment when advertising on this review platform.

Who uses Yelp?

Nowadays, many people still use Yelp despite the fierce competition with Google, TripAdvisor, TrustPilot, and Facebook Reviews. Statistics on small business owners indicate they promote and advertise themselves on the platform extensively. 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.

How many businesses are listed on Yelp?

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. 

How much does Yelp cost?

If you are a small business owner, you might want to know the costs and subscriptions available on the platform. Besides the free listing that includes the most basic benefits, Yelp comes with other four memberships:
Page upgrades—$1 per day for listing slideshow photos and $2 per day for adding listing highlights, hiding competitor ads, and adding a call-to-action button
Page upgrades bundle—$4 per day for all four upgrades
Yelp Connect—$99 per month for creating posts and connecting with potential customers
Yelp Ads—$150–$750 per month for creating targeted ads in relevant Yelp search results


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