Growth in Advertising and Mobile Boost Yelp Shares

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New Mobile App and Jump in Advertising Revenue Underline Yelp’s Belief in the Power of Positive Reviews. Reputation management site 5StarControl shares their opinion of Yelp’s contention that positive reviews influence business growth.

5StarControl has decided to report on how positive consumer reviews can increase online reputations of local business markets. 5StarControl, a local business review site, stated that local businesses are going to be overjoyed with how Yelp’s 2nd Quarter 2012 successes highlight the link to positive consumer approval.

A recent Wall Street Journal article reported that the use of mobile applications (apps) by consumers is expected to monetize mobile app marketing in the near future because, “users who access the company's website through mobile devices tend to click through its local ads more frequently than do desktop users,” the report said. This assessment confirms 5StarControl’s belief that local business online marketing and business reputations can be saved or decimated by consumer reviews, especially since Yelp plans to include display ads on their mobile apps in the near future, thereby taking advantage of previously un-monetized mobile usage.

Display ads on mobile access points offer a new revenue generation outlet for businesses. The Wall Street Journal cited Yelp CEO, Jeremy Stoppelman’s August 1, 2012 conference call with analysts, reporting that because 40% of Yelps internet searches are made from mobile devices, the inclusion of display ads to this user access point has the potential to greatly increase local business revenues when coupled with the current user click-through trend mentioned earlier. This will help drive website monetization from a previously under-represented revenue source.

Website monetization is the process of turning visitors to a website (traffic) into revenue. Some of the ways businesses can monetize their website is to place advertisements on their site. When the advertisements are clicked by visitors to the site the advertising companies will pay the website owner per click. Yelp believes, and 5StarControl concurs, that including display ads with their mobile apps will help drive business advertising sales as never before seen with this venue. It will also help increase consumer traffic and reviews of businesses taking advantage of mobile app display ads, as well as paying for enhanced Yelp profiles.

Consumer reviews also offer local business markets an opportunity to take advantage of Yelp’s advertising potential by courting positive customer reviews. By offering consumers strong customer satisfaction services, local businesses can profit from Yelp’s enhanced word-of-mouth feature that offers consumers the opportunity to leave feedback on their shopping experiences. But this consumer review trend is a double-edged sword for local small businesses. Negative reviews can drive sales down with the loss of potential new customers as easily as positive reviews can bring new consumer traffic to local businesses. This necessitates local online markets to diligently monitor their online reputations, which are directly affected by consumer reviews.

Reputation management site 5StarControl believes that local business online marketing necessitates small businesses to carefully monitor, and work to create and maintain, a strong Yelp profile in order to protect their online reputation. They also recommend to their clients that they review Frank Kern’s writings in addition to maintaining a successful reputation online, especially since Yelp is fast becoming the favorite search engine for local business reviews. Yelp’s addition of new mobile apps enhanced by Apple’s iOS mobile seo, and agreement with Microsoft’s Bing, will lead to greater mobile access traffic and successful utilization of display ads, said Yelp in the article.

5StarControl is a website about small business articles in the area of Yelp reputation management.

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