Local businesses have are at the whims of online reviews these days. The ability to quickly gather multiple opinions and search has made digital the go-to medium for assessing local businesses before you pay. Yelp knows this and as such has evolved a business model that targets mom and pop shops with CPMs higher than the Super Bowl per this article on VentureBeat.
http://venturebeat.com/2012/02/06/yelp-advertising-is-a-rip-off-for-small-advertisers/
Is this a case where advertising is killing the business itself? Since when was value generated from marketing activities?
The success rate for local businesses is already ridiculously low so why does Yelp feel the need to hit them where it hurts?
Because they can.
Until someone shows Yelp that there are other and better directory services, small businesses have no choice but to kowtow to their shady business practices.
Here's hoping there's a better future for everyone.
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