NEW YORK (TheStreet) - Yelp (YELP) Chief Operating Officer Geoff Donaker said on Tuesday the company isn't running into Angies List (ANGI) all that often, as it seeks to build up its presence in the market for online advertisements and reviews of local business service.
Donaker also noted that advertisers who move over to Yelp traditionally come from off-line companies, who had previously spent budgets on radio, print and TV campaigns. The Yelp COO made his comments at a Goldman Sachs technology conference on Tuesday afternoon in San Francisco.
"[I]nterestingly enough, we don't run into [Angies List] all that much. From everything I read it looks like they are doing well and their business to, and I certainly wish them luck in a lot of ways, but when I talked to our reps about what it is that they are hearing on the phones and when I talked to local business owners that's not who I hear about. I tend to hear much more about the offline folks. And if I hear about online folks, I hear about Google," Donaker said.
Donaker also said Yelp believes it can continue to co-exist with Google (GOOG) in the online market for local content and reviews."To the extent that people are using Google as their starting point for the web and finding their way into Yelp content, because it's the best content for a particular search in a particular city, then that's great. We are delighted to see that happen and feel pretty good about it," Donaker said. The Yelp COO added that businesses seeking to advertise on Yelp are normally coming from traditional media like broadcast TV. "Thinking about advertisers and the financial peace of the equation, we still mostly actually compete with off-line companies. When our reps are talking to a local businesses on the phone, they are mostly talking about moving budget that was or is today in print or radio or TV into the online and mobile world," he said Donaker also said that he believes online advertising is still a relatively small piece of the local advertising market that will grow over time. "How long will it take for all advertisers to shift their spend online and into mobile? Who knows? I think as you look at the overall local advertising pie, online is still a relatively small share." Yelp shares were falling over 1% on Wednesday. Angies List shares were rising over 1% on Wednesday afternoon.
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