The growth in digital advertising means Yelp will really be battling Facebook and Google for advertisers. BIA/Kelsey expects offline local advertising to decline slightly from 2012 through 2017, while all of the growth in local advertising comes from digital. Management iterated that it sees opportunity in attracting businesses away from offline advertising like the Yellow Pages, but the trend shows that offline advertising is already losing business to digital. With 60,000-odd accounts and the notion of tens of millions of prospective advertiser accounts, we feel like we're very much still getting started. And over time our goal is to be the first place new local businesses turn to for advertising. Here are a couple snippets:Ħ7,000 businesses advertise with us today, which is a drop in the bucket compared to the opportunity. On the conference call, CFO Rob Krolik was very vocal about the opportunity that lies ahead for Yelp. Yelp will compete with the likes of Facebook and Google ( GOOGL 0.19%) in this growing market, and as Yelp's management sees it, it's just getting started. The business of local digital advertising is expected to grow from $26 billion in 2013 to $41 billion in 2017. Comparatively, Facebook ( META 0.37%), a company founded in the same year as Yelp, is already facing concerns that its user base is near saturation. The company very much remains in growth mode nearly 10 years after it was founded. Yelp ( YELP -0.20%) released it fourth-quarter earnings on Wednesday, and while it reported better-than-expected revenue growth, the company spent heavily to grow that revenue, resulting in negative earnings per share.
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