Yelp reaches 100 million unique visitors, but trouble may be brewing

Yesterday Yelp, an online service that lists and reviews local businesses, announced its January traffic numbers. More than 100 million unique visitors had came to its desktop and mobile site in single month—a record.

The number from Google Analytics represents, roughly, growth of about 30% year over year. It excludes the 9.4 million unique mobile devices that used the Yelp mobile app in January alone.

The statistic also excludes traffic to Qype, a platform in Europe that Yelp bought in October for Euro 18.6m in cash as well as 970,000 in shares.

The company put together an infographic to trumpet its success and to explain who its users are, breaking out the demographic details. SEE THE FULL SIZE INFOGRAPHIC BY CLICKING, HERE.

One key statistic: Only 4% of businesses reviewed are in travel. About 21% are in restaurants, and the rest local services and activities.

yelp

Trouble may be brewing

Yelp also released its quarterly earnings, and the news wasn’t all rosy. It missed analysts’ bottom-line estimates.

About 70% of Yelp’s revenues come from ads by local businesses listed on its site. To keep the ad growth rising, its sales and marketing expenses have continued to climb as well.

Other dangers on the horizon include:

TripAdvisor will compete with Yelp as TripAdvisor introduced in beta a new Facebook app, Local Picks.

Facebook is testing Graph Search as a tool for local search.

On the bright side, Yelp has expanded its London office and may be able to leverage Qype to full advantage in 2013.

In the past few months, Yelp also launched in Poland and Turkey, bringing its combined Yelp/Qype kingdom to 20 countries.

Yelp has also benefited from its partnership with Apple. The maps introduced by Apple in September are seeded with Yelp content.

And overall, its IPO flotation in March was much more enduringly successful than similar-category site Groupon’s, to say the least.

Related posts:

  1. Yelp buys Qype for $50 million in a European landgrab by the user-review giant
  2. TripAdvisor Local Picks Facebook restaurant app to compete with Yelp and Zagat
  3. Yelp IPO: On the move in stock market and mobile
Sean O'Neill About Sean O'Neill

Sean O’Neill is a UK-based reporter for Tnooz.

Since university, he's been a full-time journalist for US consumer magazines and websites, and since 2007 he has covered B2C travel news full-time.

He lives in London and is travel tech columnist for BBC Travel. He used to work in New York City as the online senior editor for Arthur Frommer’s Budget Travel.

In the past, O'Neill held editor, writer, and reporter positions at Kiplinger’s Personal Finance and Foreign Policy magazines in Washington, DC. Please visit his personal site and follow him on Twitter or Google+ .

Speak Your Mind

*