Yelp: Display Advertising Will Be 'Discontinued' by End of Year
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Online review site Yelp will phase out display advertising by the end of the year, the San-Francisco based company said during its second-quarter earnings call Tuesday. Yelp will instead increase its efforts toward selling native and local advertising products. At the same time it’s investing in its own marketing efforts.
“We believe that eliminating brand advertising, which we also refer to as our display advertising product, will benefit the company over the long term,” said Yelp founder and CEO Jeremy Stoppelman. “The industry trend toward increasingly disruptive display advertising is at odds with our focus on the consumer experience, particularly within [our mobile] app.”
Revenue from brand advertising totaled $8.3 million, down 8% when compared to the second quarter of 2014. “While we recognize there’s a near-term impact on revenue, we believe this is the right decision for the long-term success of the company,” Mr. Stoppelman added.
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