Yelp vs. Google: Which Is the Best Marketing Option for SMBs?

Since 2004, Yelp has built a strong presence in the U.S. with millions of registered users – 51% of whom make $100,000+ a year. This makes Yelp a stiff competitor to Google, particularly for smaller businesses. In this article, we discuss:

• The intent and demographics of Yelp vs. Google users
• Google ads vs. Yelp ads
• Yelp vs. Google Reviews and the Factors influencing them
• The final verdict and our recommendations
   

Small businesses, particularly those in the U.S., rely on review aggregators like Yelp to attract customers. Now the big question is, should you prioritize Yelp or Google? The answer isn’t quite so simple.

Yelp brings inOpens a new window 38 million unique mobile app users every month, and 91.3 million via its website. While Google does not reveal exact search numbers, last year, it did announce that monthly active users on Android have crossed the 2.5 billion markOpens a new window . This means that billions of customers around the world are probably using Google search to look up small businesses in their region.

Looking at Google’s usage metrics, Yelp’s user base might fade in comparison. But this platform also has its unique advantages, making it a lucrative investment for small businesses. Let’s delve deeper.

Learn More: The 7 Most Important Metrics to Track as a Small BusinessOpens a new window

Yelp vs. Google: Where Do High-Intent Customers Search?

Going purely by the numbers, Google might seem to have a clear upper hand against Yelp. However, this doesn’t always translate into more conversions for a small business owner/marketer. Consider these metrics:

• U.S. Yelp users are uniformly distributed across age brackets, with 33% of 18–34-year-old users, 35% of 35–54-year-old users, and 32% of over 55-year-old users active on the platform. This means that businesses registered on Yelp will reach a broad demographic in terms of age.
• An overwhelming 64% of Yelp users have some college education, making them more likely to be interested in lifestyle purchases such as restaurants, arts & entertainment, nightlife, etc.
• Over half of Yelp users make $100,000 annually; 24% earn between $60,000 and $99,000. In other words, review readers and ad consumers on Yelp have a higher range of disposable income.
   

Since Yelp is primarily a review platform, the chances are that users are logging in with a specific intent to buy a product, get a quote for professional services, or plan a future visit to a restaurant. In contrast, Google is mainly used to search for a business at the initial stage of the conversion funnel.

So if you’re looking for high-intent customers, a presence on Yelp is essential.

Learn More: 7 Simple Strategies to Dominate Local SearchOpens a new window

Google Ads vs. Yelp Ads: Are Businesses Buying It?

The situation is slightly different if you consider Yelp vs. Google ads.

Google offers a wide range of ad formats including text, images, product shopping/showcase, app promotions, and call-only ads. But Yelp is limited to a simple display ad that turns up via organic search on the platform. So, if you want flexibility in terms of ad design, Google might be the way to go. This is particularly true for product sellers (as opposed to service providers and restaurants/nightclubs) because Google lets users shop directly via ads.

However, it is important to remember that Yelp is now committed to helping small businesses obtain more ROI from ads, via its no-contract advertising model introduced in 2018.

Yelp ads do not require a long-term contract, reducing capital costs for small businesses. Interestingly, this has thrown Yelp’s ad revenues into fluxOpens a new window , the platform’s ad revenue growth slowed from 12% in Q4, 2018 to 6% in Q1, 2019. While Yelp earned $227 million from ads in Q1, 2019, Google made $30.7 billion, and Facebook made $14.9 billion. Simply put, the Yelp. vs. Google vs. Facebook debate isn’t really up for questioning when it comes to ads.

All things considered, Google ads continue to be a staple for businesses in the U.S.

Yelp ads rank lower on the investment priority sheet, with Yelp reviews holding center stage – which brings us to the next element.

Learn More: Google Remarketing Ads – Your Guide to Reducing Ad Spends and Boosting Impact in 2020Opens a new window

Yelp vs. Google Reviews: Can You Afford to Ignore Either One?

Reviews are where Yelp truly shines. Consider the followingOpens a new window :

• The number of Yelp’s reviews has steadily grown over the quarters in 2018-2019, and year over year (YoY) growth stands at 17%.
• Nearly half of the small businesses listed on Yelp have a 5-star rating! There is a high probability that customers logging into the platform will be persuaded by positive reviews to finally convert.
• Yelp has consistently battled fake and misleading reviews. In Q4, 2019, it released 198 alerts, notifying consumers of biased review practices, thereby protecting business ratings.
   

Reviews on Yelp are more regulated than on Google, yet Google reviews are the first thing your customers see when looking up a local business. For instance, a business with a two-star rating (even with an intelligently SEO optimized ad that gives it a page #1 rank) is less likely to earn conversions.

That’s why we recommend allocating significant effort towards both Yelp and Google reviews. Fortunately, these review platforms are free to use, and with a keen focus on online reputation management (ORM), businesses can drive up their review ratings.

You can ask Google users to review your business by sharing a short, unique URLOpens a new window .

To earn Yelp reviews, you can mention Yelp on marketing materials, email campaigns, and even at your brick-and-mortar locations.

Learn More: A Bad Reputation Can Cost a Business – How Your Agency Can Step UpOpens a new window

The Final Verdict: It’s Yelp+Google, And Not Yelp vs. Google

Yelp has a robust market presence in the U.S, which makes it a must-have for small businesses. The five most reviewed business categories include restaurants (18%), home and local services (17%), shopping (17%), beauty & fitness (11%), and health (8%). So, if you operate in any of these categories, it is an excellent idea to double-down on your Yelp investments in 2020.

While Yelp is meant to help small businesses gain from a high-intent, moderate-to-high income customer community, Google will help you increase reach and visibility.

For new/upcoming businesses, Google “puts you on the map,” letting you earn credibility via open-to-all reviews.

To make use of both platforms, marketers need a carefully outlined roadmap and a clear understanding of their customer base. By strategically distributing investments across SEO-optimized Google ads, a smartly designed Yelp profile page, and seasonal ad campaigns on Yelp, small businesses can maximize their local customer audience.

Yelp or Google  – which one would you recommend to small businesses in the U.S.? Tell us on LinkedInOpens a new window , FacebookOpens a new window , or TwitterOpens a new window .