Facebook recently made waves when it reported that 30 percent of its advertisement revenue came from mobile ads. It looks like the social media giant is not the only website to experience such success with this form of marketing. On Wednesday, May 1, business directory and review service Yelp revealed that more than 35 percent of the profits made from advertising were those on gadgets like smartphones and tablets.
Because of Yelp’s mobile ad success, the website’s profits soared nearly 70 percent to just over $46 million. This was especially impressive, as during the first quarter, analysts were predicting that revenue wouldn’t be more than $44.5 million. Local ad revenue proved to draw in the most money. It increased 81 percent to just under $40 million.
“We had a great start to the year and are excited about the large opportunity in front of us,” said Yelp CEO Jeremy Stoppelman, according to technology news website TechCrunch. ”This quarter we achieved many milestones including a record 102 million unique visitors on a monthly average basis, demonstrating the strength of our content and the trust we have earned from consumers. We provide valuable leads to local businesses because consumers turn to Yelp at the critical point when they are making purchase decisions.”
Yelp reportedly predicts its second quarter revenue to fall between $52.5 million and $53.3 million.
These massive profits simply show how critical it is for small businesses to gain exposure through online advertising. Thousands of companies are already targeting their consumers demographically and geographically through paid ads, so if you aren’t, you could be losing out. Contact a local online marketing firm like Key Media Solutions. Our experts can craft targeted advertisements to help you capitalize on this medium.