At least that’s what the findings of a recent Boston Consulting Group (BCG) study are saying. In fact, BCG reveals that small businesses with free Yelp business accounts – which can be claimed just by signing up and creating a Yelp listing – see an average of $8,000 in annual revenue from the site. Eight grand – just for signing up! Which, to be honest, isn’t much work anyway, since a business is likely to be already listed on the site.
The study demonstrates how important the digital economy has become – and how merely having presence on Yelp, the popular online reviews aggregator, can drive real value to small business owners.
Business owners spending advertising money on Yelp can enjoy even higher returns, in large part due to greater exposure. According to the study, Yelp advertisers generate average annual revenues from Yelp of more than $23,000. (It’s worth noting that just recently, Yelp added another advertising product and opened up mobile display ads for reaching a more mobile audience.)
Revenues were even higher for businesses and advertisers in certain categories. Those that do exceptionally well on Yelp include:
- Home / home contractors: $54,000 in average annual revenue from Yelp
- Automotive businesses: $39,000
- Local services: $36,000
- Hotel / travel / hospitality businesses: $36,000
- Shopping / retail: $24,000
- Health services / medical professionals and businesses: $20,000
Shared Matt Halprin, Yelp’s Revenue and Analytics VP: “Considering that our typical local advertiser spend is $4,200 annually, that’s a pretty good ROI for these savvy businesses. Bottom line: there’s a lot of upside here for small businesses who claim their free account, and even more for those who advertise.”
Entitled “Unlocking the Digital Marketing Potential of Small Businesses,” the BCG study took into account the responses of nearly 4,800 small business owners.
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