The advertisement cost for displaying it on the top of the popular word of mouth site is higher than the super bowl

ByYuki *

There are quite a lot of people who buy things by referring to the word of mouth site, so many companies do marketing in anticipation of their influence. However, according to experts, advertisements to word of mouth on the site are just expensive and there are cases that it is meaningless. In comparison with the advertisement expenditure per number of times displayed, the NFL's victory decisive game where many people watch in the United States It is more expensive than CM which can be flown at half time of "Super Bowl".

Yelp advertising is a rip-off for small advertisers | VentureBeat

Recently, in the site attracting attention in the United States "Yelp (Yelp)"There is a site called. As for what kind of site, the explanation here is fairly easy to understand.

A popular word-of-mouth communication site in the USA - Yelp? San Francisco Web consulting company - Beatrix - Staff blog

I often hear from people coming to Japan from the business trip to Japan, "Yelp was very convenient, it was easy to find a good restaurant thanks to that". Yelp is a popular information site in the United States, such as restaurants and local shops. It is yelp.com that many people visit when searching for a shop, and when you decide the schedule, when notifying places to friends by e-mail etc., it is common to send Yelp's shop link Target.

Speaking of restaurant-related reviews sites in Japan, eating logs, hot peppers, etc. can be mentioned, but actually compared with Yelp, Yelp is more useful in terms of content content and ease of use, in many respects It is felt high. Also, depending on the shop, Yelp is established in the United States as it is thought that it is enough if there is a profile page on Yelp even if there is no site.

San Francisco Restaurants, Dentists, Bars, Beauty Salons, Doctors
http://www.yelp.com/


ReDesign mobileRocky Agrawal, the main analyst of the company, talks to the business owner who is engaged in a small business, he hears that "advertising on the site will be charged as much detrimental as possible". Yelp mentioned above is a site that is particularly popular among its users, while Yelp requests a local advertiser a CPM of 600 dollars (about 46,000 yen), whereas the CPM of many net advertisements is 60 cents (about 46 yen) It seems to be doing. "CPM" stands for Cost Per MillePrice per 1000 postings. In other words, when a person operating a shop in a rural area tries to place advertisements on Yelp, it costs 46,000 yen for every 1000 times of display,It takes 46 yen to display it onceIt will be calculated. This is 100 times the price of regular banner advertisement.

This is an example of Yelp's page. CPM for posting banner on here is $ 6 (about 460 yen). By clicking on this banner, you can go to the site of the company you are sending out and go to the campaign page.


On the other hand, this is a case example of targeted advertising that is being conducted for local shops. It is displayed at the top of the shop list displayed when searching for a specific area, and the CPM here is 600 dollars (about 46,000 yen). I searched with the phrase "New York" this time.


It is Yelp's shop information page that moves when clicking. Even if the site of the shop is unique, we can not link to that site.


According to a company that has actually advertised to Yelp, the price has the following pattern.

300 dollars a month (about 23,000 yen) = 500 times indication
Month 540 dollars (approximately 42,000 yen) = Displayed 1200 times
Month 825 dollars (approximately 64,000 yen) = Displayed 2100 times
Month 1100 dollars (approximately 85,000 yen) = Displayed 3000 times

This "500 times display" is the number of times fixedly displayed in the upper part of the list of search results. When it is displayed for this number of times, it is fixed and goes back to the original position of the search result.

With an expensive plan, CPM is $ 600 that came out in the previous story, CPM is 367 dollars (about 28,000 yen) even for the cheapest plan. By the way, NFL 's known for its very high advertising effectSuper bowlBecause CPM is $ 35, if the number seen is the sameSpot CM of 30 seconds with Super Bowl 10 timesIt will be.

Even worse, Yelp needs a 12 - month contract at this rate. Since the advertisement is based on the number of impressions to the last, even if one person does not click, Yelp can obtain a minimum of 3,600 dollars (about 278,000 yen) in one contract.

Compared to other services, for example, in the case of Facebook, it can be implemented from the point that the budget is 1 dollar a day (about 77 yen), because there is no tie-down that it is the minimum contract period, trying it in a week It can be used to consider whether or not to perform it in a similar way. Agrawal seems to be pretty tough with Groupon, but still at the level advising "Please leave it groupup", I do not think there is a scenario where I can add to Yelp and become a positive scenario.

Agrawal advises you to think about other services for net advertisements whose prices are determined on the number of impressions. For example, in a restaurant, paying advertising fees only when someone uses the service, no contract is requiredGrubHubIt is better to use services like.

Although Yelp's regular banner pricing is not particularly good, it is unfortunate for Yelp that 70% of its revenue is due to the target advertisement (previously submitted by local small business owners) thing. In the most recent quarter, Yelp has seen a significant increase in profits, up 74.5% from the previous year and 11.7% from the previous quarter. However, if the core part of the business model is such a pricing setting, investors and advertisers who are presently offering "one star" to Yelp in the future, will leave behind the scenes Agrawal pointed out that it will not take long until then.

By the way, because the above story is a case in Yelp to the last, it is not necessarily the same in other sites of the word. In the first placeJapan's net advertising exchange rate is about 1/3 of the USIt seems to be true, is everybody doing such a thing and earning a Bari Bali ... ?.