Yelp stock1/10/2024 “It gives a much better opportunity to start a dialogue with someone who was happy or disappointed. “For us it seems like we get more activity on Google, Instagram, and Twitter,” Jerrier says. Teran says that collaboration netted one of his restaurants 400 new followers and dozens of new customers who said they came in after seeing the influencer’s post.ĭallas-based restaurateur Jay Jerrier, who owns 10 pizzerias across Texas, including Cane Rosso in Dallas, Houston, and Austin, says he and his staff hardly ever look at Yelp anymore: “Maybe every two or three months to see if there are any specific service issues,” he says, “or to spot check food quality from real guest photos. He cites a recent collaboration with NYC-based Instagrammer who has 308,000 followers. Teran says he’s shifting his advertising dollars toward Instagram and working with influencers, avenues where he says he sees a better and faster return. But it’s not hard to see why restaurants would want to shift their ad dollars away from a platform that’s been both plagued by accusations of improper business practices and widely maligned thanks to some entitled users who take great joy in blasting restaurants with negative reviews. Those complaints resulted in multiple lawsuits that were eventually dismissed after the Federal Trade Commission found Yelp hadn’t committed any wrongdoing. Over the years, the company has been accused of extortion by numerous business owners, who say Yelp threatened to remove positive reviews from their business’s page if they did not pay for advertising, or asked for payment in exchange for hiding or deleting negative reviews. ![]() Teran, who appears in the Yelp-focused documentary Billion Dollar Bully, has accused Yelp of manipulating one of his restaurant’s reviews after he refused to advertise with them. “Three or four years ago, that wasn’t the case.” “I opened a new restaurant a few months ago, and for every five Google reviews we get, we get maybe one Yelp review,” says Danny Teran, co-founder of the NYC-based Watson Hospitality Group. While that move initially resulted in a jump in new accounts, it also means businesses aren’t obligated to continue to advertise if they’re not impressed with the results of their advertising - and seemingly, more and more business owners are taking their ad dollars elsewhere, especially as diners flock to other platforms. ![]() Part of Yelp’s woes seem related to its new no-term deals, meaning advertising clients are not locked into a contract. There is definitely not a shift away from user-generated content or reviews, people are just looking for them in different places as new channels and ways of sharing come about.” “If you want to see what the food looks like or who has been eating there, a quick search on Instagram will pull up thousands of pictures and ‘reviews’ in a different form. These days, competition is much stiffer: “It’s not just Google Maps and location-based sites that Yelp has to compete with, but social media channels as well,” says Jenifer Ekstein, a senior consultant at Vivaldi. Launched in 2004 by former Paypal employees Jeremy Stoppelman and Russel Simmons, Yelp was the first big success story in the early days of user-generated reviews, fueling rapid growth that led it to a 2010 IPO. ![]() That revelation resulted in a 30 percent stock plunge, leading some to wonder if the era of Yelp is coming to an end. When was the last time you used Yelp? If your attention (and/or ire) has wandered more toward instantly accessible Google reviews or meticulously curated Instagram feeds in recent months, you’re not alone: Yelp revealed during an earnings call last week that the review site is struggling to attract and retain advertisers - the primary way it makes money.
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