Home service contractors see advertising returns on Yelp

Yelp’s Q3 earnings revealed that home service professionals are finding the platform worth their advertising dollars. 

Details: Advertising revenue from Service Businesses was up double digits year-over-year, driven by 20% growth in the Home Services segment. On top of that, Ad Clicks were up 9% year-over-year, signaling that more homeowners are engaging with Yelp ads.

In their earnings letter, Yelp noted, “Improvements to the Request-a-Quote flow drove increases in consumer requests.” They expect new features, including their photo selector tool (which optimizes ad images for maximum clicks), to drive more leads to advertisers going forward.

In comparison: Unlike Angi, whose Q2 earnings showed the opposite — a 14% drop in advertising revenue and a 12% drop in homeowner service requests — Yelp seems to be making the right bets, showing contractors a return on their marketing spend.

Takeaway: While Yelp may not rival Google’s $200 billion advertising business, its growth in Home Services revenue indicates that they’re carving out a niche in attracting contractors looking to diversify their marketing mix.

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