Bloomberg: Yelp Backs Off Its Daily Deals Product

Local reviews platform has halved sales staff dedicated to the offering.

Yelp plans to slash the number of sales staff hawking its daily deals product, Bloomberg reported today. The move, coming just days after Facebook killed its own deals offering, will provide ammunition to those who argue the space has blown up beyond the capacity of consumers and merchants to sustain it.

According to the report, the business reviews platform will cut in half the number of staff dedicated to selling Yelp Deals, a service it began rolling out one year ago.

Bloomberg cites a Yipit estimate that 38 daily deals sites closed in July, outnumbering the 36 that opened, while the industry overall experienced a 7 percent drop in revenue from June in top North American markets.

The main reason for such cutbacks may lie in the fact that customers are increasingly inundated by emails from numerous companies offering similar products, raising inbox clutter and reducing open rates. Businesses, too, are weary of being constantly pitched on such deals.

Groupon CEO Andrew Mason addressed the Yelp cutback in a memo to employees that was obtained by several media outlets, writing, “Yelp is small and is not growing. In the 15 markets where we compete, our daily deals are 500 percent of their size.”

 

Subscribe to get your daily business insights

Whitepapers

US Mobile Streaming Behavior
Whitepaper | Mobile

US Mobile Streaming Behavior

5y

US Mobile Streaming Behavior

Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...

View resource
Winning the Data Game: Digital Analytics Tactics for Media Groups
Whitepaper | Analyzing Customer Data

Winning the Data Game: Digital Analytics Tactics for Media Groups

5y

Winning the Data Game: Digital Analytics Tactics f...

Data is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...

View resource
Learning to win the talent war: how digital marketing can develop its people
Whitepaper | Digital Marketing

Learning to win the talent war: how digital marketing can develop its peopl...

2y

Learning to win the talent war: how digital market...

This report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...

View resource
Engagement To Empowerment - Winning in Today's Experience Economy
Report | Digital Transformation

Engagement To Empowerment - Winning in Today's Experience Economy

1m

Engagement To Empowerment - Winning in Today's Exp...

Customers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...

View resource