Yelp's Mobile Gains Are Eating Away at Google's Ad Revenue: StockTwits

NEW YORK (TheStreet) -- Yelp  (YELP) is causing Google  (GOOG) some pain in mobile. A new report by research firm eMarketer shows Google's share of mobile search ad dollars is dropping as Yelp's share skyrockets.

Yelp stock was trading just shy of $66 as of 11 a.m., down 4.5% year to date but up 126% over the past 52 weeks.

On StockTwits.com, a majority of investors believe Yelp's stock is headed higher, along with its mobile ad revenues. Sentiment on the stock is 53% bullish, according to site analytics.

$YELP Strong user growth, strong mobile growth.

? Jeff Reznik (@jeffreznik) Apr. 30 at 05:07 PM

Two years ago, Google dominated mobile search ads, taking in 82.8% of the $2.24 billion market, according to eMarketer. But Google's share has dropped since then, as niche search apps became more commonplace. This year, eMarketer estimates that Google will own just 65.7% of the $9.02 billion mobile search ad market. The remaining 27.3% will be split by Yahoo! (YHOO), Microsoft's  (MSFT) Bing, Yelp and other category-specific search applications.

Yelp in particularly has seen its share of mobile ad dollars skyrocket. eMarketer estimates that Yelp's mobile search revenues grew 311% in 2013 and will grow 136% this year to hit $119.4 million. The research firm projects that Yelp's mobile ad dollars will triple by 2016 and account for about 2% of the mobile search ad market.

Yelp's 2% of the market doesn't really pose a threat to Google. But, all the little bites from the small fish in Google's mobile search ad pond add up. And eMarketer's projections indicate that Google will start to feel the pinch from stolen share by 2016, when it will have less than 40% of the market.

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