Yelp Launches New CPC Advertising Program

Yelp is offering a new cost-per-click (CPC) program bundled with its enhanced listing option. To be clear, the ability to bid on a CPC basis isn’t new, but this new program includes a discount bundle with some enhanced features.

These programs are offered on a 6- or 12-month initial term. If you cancel prior to the end of your contract, there is an early termination fee equal to one month’s maximum charge ($200).

Below are some details I received from a Yelp sales rep regarding the new CPC program:

• 12 month: $50 enhanced profile, $150 advertising budget
• 6 month: $75 enhanced profile, $125 advertising budget
• Enhanced Profile, which includes: Removal of competitive ads from your page, participation in the slide show, and additional Call to Action (CTA) capabilities
• The Call to Action unit includes a button where the advertiser can specify an action (e.g., schedule appointment, print coupon), and clicking on the button takes the consumer to a landing page of the advertiser’s choice. This is a great feature as it would allow you to track your results and ROI.
• The fees are collected at the end of the month, so if you don’t get to your budget of $125 or $150, then you may be charged less. However, you can also increase your budget.
• The CPC fees start at $2/click and could go up to $5/click depending on the industry.
• The CPC fees are industry based. Here are the maximum CPC fees for each industry:
  • Restaurants, food, and nightlife: $2/click
  • Professional services, beauty, and spas: $3.50/click
  • Most shopping: $2.50/click
  • Most health and medical: $4/click
  • Home services: $4.50/click
• The above CPC fees are the maximum charges and there is an auction based model, so the fees could actually be less.
• This new program isn’t available through self sign up. You would have to call your local Yelp rep.

There have been many controversies surrounding Yelp, including lawsuits and claims that Yelp purposely filters out positive reviews for those who decline to advertise. Yelp has been able to defend itself legally against such accusations and states that their automated review filter is the only thing filtering reviews.

It is well known that Yelp often would take manual action if they feel a business has fake reviews. Recently they filed a lawsuit against a business owner claiming he had posted fake reviews, which I wrote about here.