Yelp Shares Jump 25% on Local-Ad Growth

August 2, 2012 3:19 pm Published by

Investors should carefully study the percentage of Yelp advertisers who renew their ad contracts. We believe the renewal rate is much lower than that claimed by Yelp. Read advertiser’s reviews of advertising on Yelp.

Advertising on Yelp can cost $600 CPM! Read: http://www.cbsnews.com/8301-505124_162-57423392/when-yelp-advertisers-yelp-at-rates/

People like to read reviews but Yelp’s business model is flawed. And there are minimal barriers to a new competitor. That is my review of Yelp.

Read the article in The Wall Street Journal.

This was later submitted after WSJ removed the above Comment because it contained the hyperlink:

I own dental content websites that provide over 4,400 pages of free content in 220 countries via over 600 urls. My personal experience advertising on Yelp was quite bad. I found the staff unprofessional (e.g. cursing on the phone when they thought they couldn’t be heard – I have the transcript & their subsequent apology), the company withheld contractually-obligated traffic data from me (I have the emails – and another major news organization wrote an article about my experience) and the CPM incredibly expensive compared to Google or Bing.

People like to read online reviews but I have found in multiple online searches that many advertiser’s don’t seem to like Yelp. I agree.

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This post was written by Dr. Jeffrey Dorfman