News & Information for Technology Purchasers NewsFactor Sites:     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Industry News
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Yelp Acquisition May Boost Local Ad Revenues for Google
Yelp Acquisition May Boost Local Ad Revenues for Google

By Jennifer LeClaire
December 18, 2009 10:17AM

    Bookmark and Share
Google is reported in advanced acquisition talks for Yelp, which has been successfully working with local businesses. With about $30 million in revenue, Google could pay $500 million or more for the Yelp community. An analyst said if Google buys Yelp, it could have a dramatic impact on local advertising markets.

Technology acquisitions continue to make headlines in a down economy. With Google, Apple and Microsoft going tit for tat on the acquisition front this year, Yelp could be the next digital property to get scooped up. Google may pay $500 million or more.

According to published reports, Google is in the advanced stages of Yelp acquisition talks. Yelp was founded in 2004 with a mission to help people find local businesses, and the idea caught on. As of November, more than 26 million people had visited Yelp in the past 30 days.

Users, called Yelpers, have written more than eight million local reviews. Business owners can set up free accounts to post offers, photos and messages to customers. Yelp makes money by selling ads to businesses, and some reports suggest Yelp has about $30 million in annual revenues and could see as much as $50 million in 2010.

Yelp's Familiar Revenue Stream

Greg Sterling, principal analyst at Sterling Market Intelligence, said the Yelp deal makes strategic sense for Google. Google has increasingly focused on providing content and services to local markets, such as on Google Maps. Yelp would sharpen that focus.

"Yelp is very strong. In many markets it's got the strongest local brand. It also has a very active community," Sterling said. "Google doesn't have a social network. I wouldn't exactly call Yelp a social network, but it has an engaged and active community."

Yelp also offers Google a wealth of content that it can repurpose, Sterling said, and though $50 million in revenues is not meaningful compared to Google's overall earnings, the income demonstrates Yelp has a business model that's working.

Beyond sponsored results, paying advertisers can also promote a favorite review at the top of their Yelp page. And Yelp is mobile. The service is available through the mobile web, or applications for the iPhone, BlackBerry, Palm Pre and Android.

Not a Traditional Google Acquisition

"This is not a typical Google acquisition in the sense that it's not a technology company Google is buying. Google is not getting some platform or tool to complete something they are doing elsewhere. They are really buying a community, a brand, and, also very importantly, they are buying a sales channel," Sterling said.

Yelp sells ads to the local market via telephone and also has an on-the-ground presence, with local editors in charge of specific markets. Sterling called the telephone sales channel an interesting dimension of the reported deal, especially considering Google's unsuccessful attempts to build a sales force around AdWords.

"Adding Yelp gives Google the ability to reach out into local markets in a way they haven't been able to thus far. It's the closest Google has come to buying a sales channel," Sterling said. "If this deal does come to pass, it could have a fairly dramatic impact on the local online market and traditional online publishers like newspapers and Yellow Pages. It could also initiate some consolidation as others sort of scramble to get theirs."

Tell Us What You Think


 Mobile Industry News
1.   T-Mobile Calls 'BS' on AT&T Promo
2.   Researchers Tout Battery Breakthrough
3.   Samsung Postpones Tizen Phone
4.   Verizon Throttling Data Speeds
5.   China To Call Qualcomm a Monopoly

T-Mobile Calls 'BS' on AT&T Promo
Says 'Best Ever Pricing' is a joke.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Earnings, Excitement Grow for Apple
Momentum mounts as rumors swirl.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.
Dropbox for Business Beefs Up Security
Dropbox is upping its game for business users. The cloud-based storage and sharing company has rolled out new security, search and other features to boost its appeal for businesses.

Enterprise Hardware Spotlight
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.
Microsoft Makes Design Central to Its Future
Over the last four years, Microsoft has doubled the number of designers it employs, putting a priority on fashioning devices that work around people's lives -- and that are attractive and cool.

Mobile Technology Spotlight
T-Mobile Calls 'BS' on AT&T's New Promotion
While Verizon Wireless is moving to throttle bandwidth hogs, a scrappy T-Mobile is taking on the giants with a limited-time promotion it hopes will drive up the churn rates of its wireless rivals.
Microsoft Update to Windows Phone 8.1 Already Coming
An update to Windows Phone 8.1 is on the way just weeks after the release of the product itself. Microsoft has begun detailing some of the update features to phone manufacturers.
Stanford Researchers Report Battery Breakthrough
Stanford researchers have found a way to use lithium in a battery's anode, a breakthrough that could triple capacity and has been described as the "holy grail of battery science."

NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.