Top 5 Local Ad Stats of the Week: Ratings and Reviews
March 21, 2014 | Contributed by: Joe Morsello
Following the recent announcement of a partnership with Yahoo, Yelp, the popular ratings and review site, has partnered with local search provider, YP. There is no denying that ratings and reviews are having an impact on the local marketplace and search providers are making big moves to secure a foothold in the review space.
As platforms use reviews as significant drivers of search rankings and improve their ability to filter out fake reviews – and government officials crack down on dishonest practices – consumer trust and use of reviews can only be expected to grow. This trend will continue to increase the impact of reviews on local businesses.
Here are some compelling stats that show how ratings and reviews are impacting the local advertising space:
- Online consumer reviews are the third-most trusted form of advertising. (Nielsen)
- Only half of small business owners think positive online reviews are important. (Yodle)
- The single most important variable in the ranking of search results on Google’s Local Carousel is the quality and quantity of reviews. (Digital Marketing Works)
- A one-star rating hike on Yelp can mean a 5-9% rise in restaurant revenue. (Harvard Business School)
- About 20% of respondents to a Street Fight consumer survey said they would submit a review after a negative experience, and about the same amount said they would submit a review after a positive experience. (Street Fight)
Be sure to check back next week for our next edition of Top 5 Local Ad Stats of the Week. Have a great weekend!
Tags: Data, Digital Marketing Works, Google, Harvard Business School, insights, local advertising, local marketing, Local Search, Local Search Association, Nielsen, ratings, ratings and reviews, research, reviews, search rankings, search results, stats, Street Fight, Yahoo, Yelp, Yodle, YP