Yahoo's search engine leans on Yelp for help

Mar 12, 2014
Yahoo on Wednesday began serving up Yelp reviews in US search results as it sought to win users away from Google

Yahoo is cribbing from Yelp's online reviews of local merchants to soup up its search engine.

Ratings and excerpts from Yelp's merchant reviews began to appear in Yahoo's on Wednesday.

Financial terms of the partnership weren't disclosed. News of the deal first leaked out last month, so it didn't come as a surprise. Yahoo's stock dipped 7 cents to $37.49 in afternoon trading while Yelp's shares gained $2.48, or nearly 3 percent, to $92.48.

Yahoo Inc. is hoping the snippets from Yelp Inc.'s popular service will spur more people to rely on its when they're looking for information about a specific city. Yelp could generate more revenue and polish its brand by having its content featured in Yahoo's search results.

Boosting search traffic is a high priority for Yahoo CEO Marissa Mayer because the queries spawn insights into users' interests. That knowledge can then be used to sell advertising.

Yahoo ranks a distant third in Internet search behind Google Inc. and Microsoft Corp.'s Bing.

Neither of those search engines will be able to highlight Yelp's material in the same way that Yahoo now can.

Google had been showing Yelp snippets it in its search engine a few years ago, prompting Yelp to complain that it was being cheated out of revenue and traffic. After U.S. antitrust regulators opened an investigation in 2011 into whether Google was trying to stifle competition, the company stopped using Yelp's reviews in its local search results.

Yahoo's search market share has been steadily slipping since the Sunnyvale, California, company began relying on Microsoft's technology to produce most of its results in 2010. That alliance still gives Yahoo the flexibility to add other features to its search results.

Microsoft also helps sells some of the advertising displayed alongside Yahoo's search results. Ad revenue initially slumped after Microsoft and Yahoo joined forces, but the numbers have been looking better during the past two years. After subtracting ad commissions, Yahoo's revenue last year rose 6 percent to $1.7 billion.

Yelp's revenue last year totaled $233 million, a 69 percent increase from the previous year.

Explore further: Yahoo spurns Facebook and Google sign-in credentials

4 /5 (2 votes)
add to favorites email to friend print save as pdf

Related Stories

Yahoo buys smartphone diary-app maker Wander

Feb 11, 2014

Yahoo on Tuesday added the startup behind smartphone visual diary-app Days to its list of acquisitions as CEO Marissa Mayer tries to pump new life into the aging Internet pioneer.

Yahoo CEO says company now has 800 million users

Sep 12, 2013

Yahoo CEO Marissa Mayer says the Internet company now has about 800 million worldwide users, a 20 percent increase since she was lured away from Google 15 months ago to steer a turnaround.

Yahoo big on desktops as world goes mobile

Jan 21, 2014

Yahoo was the most popular online venue visited from US desktop computers in December as modern lives increasingly revolve around using mobile devices to connect with the Internet.

Recommended for you

UN moves to strengthen digital privacy (Update)

Nov 25, 2014

The United Nations on Tuesday adopted a resolution on protecting digital privacy that for the first time urged governments to offer redress to citizens targeted by mass surveillance.

Spotify turns up volume as losses fall

Nov 25, 2014

The world's biggest music streaming service, Spotify, announced Tuesday its revenue grew by 74 percent in 2013 while net losses shrank by one third, in a year of spectacular expansion.

Virtual money and user's identity

Nov 25, 2014

Bitcoin is the new money: minted and exchanged on the Internet. Faster and cheaper than a bank, the service is attracting attention from all over the world. But a big question remains: are the transactions ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.