Yelp is differentiating itself from InsiderPages, Judy’s Book and other review-based Yellow Pages by giving local advertisers a choice: buying a “calls program” (Pay-Per-Call) or a “view program” (Pay-Per- Click).
CEO Jeremy Stoppelman told The Local Onliner that advertisers want to set a monthly Internet ad budget. It doesn’t matter whether they reach their ceiling via pay-per-call or pay per click, he says – and in any case, many walk-in businesses aren’t judging their advertising ROI based on the phone calls they receive.
Familiarity also plays a factor. In the Bay Area, which is Yelp’s headquarters, many advertisers have already used CitySearch’s pay- per click system, which is three years old. Other sites have found that Pay-Per-Call provides a much higher return, typically in the $4-7 range. But it will be interesting to see whether Yelp sticks to its hybrid program, which seems well-thought out to me.