Yelp's Local-Mobile Strategy Is Paying Dividends

Yelp’s mobile user base climbed to 10.4 million during the second quarter of 2013.

The company’s rapid mobile growth has caught the attention of local businesses. Their advertisements on mobile devices constituted 40% of Yelp’s overall local ad inventory this quarter, as the second chart below shows. That’s up from 26% just two quarters ago.

Mobile is a huge opportunity for Yelp, and it has been a prominent source of growth for the company. It’s clear that they have shifted resources toward improving their mobile experience.

The Yelp app has become the bellwether for a location-based services app.

Yelp’s mobile app users are engaged through local discovery and the ability to make on-the-go reservations and appointments. Some might even write reviews on their handheld devices. Yelp can harvest all that relevant user information while also pinpointing a user’s whereabouts.

Consumers also use the app as an integral step in the local purchase cycle. 93% of U.S. Yelp users in a recent Nielsen study said they at least occasionally make a purchase from a local business after using Yelp.

Click here to download the charts and data in Excel.

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Here’s a look at growth in Yelp’s local advertising share, charted against the growth in revenue from local advertising.

As is the case with Google, the influx of mobile app users — and the increase in local ad inventory on mobile — have inflated Yelp’s overall local ad revenue.

Click here to see a larger version of this chart.

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