Yelp makes updates to boost contractor advertising

Yelp this week rolled out over 20 product updates as part of a larger initiative to improve its advertising offerings, particularly for home service businesses. 

Why it matters: The company embarked on a $40 million spending blitz this year to capture more advertising dollars from home service companies, which now represent over 60 percent of its revenue.  

What’s happening: Among the updates is an integration with Apple, allowing customers who search for and view a contractor on Apple Maps to click a new “Quote” button and immediately request a quote through Yelp. 

• Ad testing. Yelp’s technology now automatically tests different combinations of reviews and pictures in advertisements to help contractors maximize their returns.
• A new inbox. The business inbox within Yelp’s app is being redesigned to simplify lead management, highlighting only leads’ most relevant information.
• Competitor dashboard. Contractors can now compare page performance with up to three local competitors.
• See more

Zoom out: Yelp’s focus on home services stems from the increased demand that it saw during Covid when restaurants closed and stopped advertising. 

• The shift represents yet another step in its decades-long battle for local ad dollars with Google, which receives 90 percent of all U.S. search traffic. 

What’s next: The Apple Maps integration, ad testing improvements, and competitor dashboards are already live. The updated business inbox will be available “in the coming weeks,” according to the company. 

The bottom line: “We’re looking forward to continuing this momentum into the new year, with even more updates for consumers and business owners to come,” said Craig Saldanha, Yelp’s Chief Product Officer.