DoorDash vs. Yelp Ads: Which Platform is Better for Local Merchants to Drive More Business?

In the competitive local digital advertising landscape, small business owners constantly seek the most effective platforms to promote their businesses, attract customers, and drive sales. Two prominent platforms offering local businesses specialized advertising services are DoorDash and Yelp.

Each platform has unique features and benefits, making it crucial for businesses to understand which better serves their business objectives. This article provides an overview comparison of DoorDash and Yelp Ads, aiming to guide local businesses in making informed decisions about where to allocate their advertising budgets.

DoorDash: Ideal for the Food and Beverage Industry

DoorDash, primarily known for its food delivery services, offers various advertising solutions to help brands and restaurants of all sizes increase their visibility and sales. Their platform reaches an estimated 94% of the U.S. population, offering a vast audience for advertisers. DoorDash provides targeted advertising options such as Sponsored Ads and Promotions, which are pay-per-engagement, ensuring that advertisers only pay for tangible results. This model is particularly appealing for small businesses with tight advertising budgets.

Industry-Specific Reach: DoorDash specializes in the food delivery sector, making it an unparalleled advertising platform for restaurants, cafes, and other food-related businesses. The platform's user base consists of consumers actively looking to order food, which means advertisements target audiences with immediate purchase intent.
Promotions and Sponsored Listings: These features allow businesses to offer discounts and special deals directly within the app, further enticing potential customers. For small businesses, this can be a game-changer in driving sales during off-peak times or when launching new menu items.
Data-Driven Insights: DoorDash has valuable analytics and insights into consumer behaviors. This data enables restaurants to tailor their offerings and advertisements based on customer preferences and trends.

DoorDash: Pay-Per-Engagement Model

Cost-Effectiveness: With DoorDash, you only pay when users engage with your ads, such as clicking on a promotion. This model can offer a higher return on investment (ROI) since you're not paying for mere visibility but for actions that could directly lead to sales.
Budget Flexibility: Small businesses can start with a modest budget to test the waters and scale up based on the performance and ROI of their campaigns.

Yelp: A Broad Spectrum of Local Businesses

Yelp, a platform known for its business reviews, offers Yelp Ads as a way for businesses to stand out among competitors and reach potential customers actively searching for services. With over 5.8 million active claimed business pages, Yelp Ads provide a valuable opportunity for businesses to increase their visibility. Advertisers can target their audience by location and keyword, ensuring that the most relevant customers see their ads. Yelp also offers a pay-per-click model, allowing businesses to control their spending by setting daily budgets.

Diverse Business Exposure: Unlike DoorDash, Yelp caters to many local businesses, from home services and automotive to beauty salons and healthcare providers. This diversity makes Yelp Ads a versatile platform for any local business aiming to increase its visibility among consumers researching specific services.
Reputation Management: Yelp's foundation in user reviews offers a unique advantage. Ads can drive visibility and credibility, as potential customers see positive reviews alongside your advertisements. This dual impact can significantly influence consumer decisions.
Geo-Targeted Advertising: Yelp allows for precise geographic targeting, ensuring your ads reach users within your service area. This local focus is crucial for businesses that rely on foot traffic or local clientele.

Yelp: Pay-Per-Click Model

Control Over Spending: Yelp's pay-per-click model allows businesses to pay only when a potential customer shows interest by clicking on the ad. This cost model can be cost-effective to drive targeted traffic to your Yelp page or website.
Free Credit Offer: Yelp often provides special offers, such as $300 in free credit for new advertisers, which can be a great way to trial the platform's effectiveness without a significant initial investment.

Making the Decision: DoorDash vs. Yelp Ads

When deciding between DoorDash and Yelp Ads, local merchants should consider their business needs and objectives.

DoorDash is an excellent option for restaurants and food-related businesses looking to reach a large audience of consumers ready to purchase. Its pay-per-engagement model and targeted advertising capabilities make it cost-effective for driving sales. Its industry-specific features and analytics provide valuable tools to drive sales and understand customer preferences.

On the other hand, Yelp Ads offers a broader application for various types of local businesses beyond the food industry. The platform's strength lies in its ability to provide targeted visibility in a competitive landscape, making it ideal for companies seeking to increase their local presence and attract customers actively searching for services. Yelp's broad appeal and strong foundation in consumer trust through reviews make it an excellent choice for businesses outside the food industry.

Conclusion

Local small businesses should consider not just the platform that seems immediately relevant but also how each platform's unique features can serve their long-term business goals. For some, a combination of DoorDash and Yelp Ads might be the best strategy, taking advantage of DoorDash's food industry dominance while leveraging Yelp's broad local services reach and review-based credibility.

Ultimately, the key to successful advertising lies in understanding your audience, aligning your advertising efforts with your business objectives, and continuously optimizing based on performance data. Whether through DoorDash, Yelp, or both, the goal is to connect with potential customers effectively, offering them value that turns them into loyal customers.