Siri to Drive Yelp's Mobile Traffic Growth

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( Trefis) -- Yelp ( YELP) is one of the largest online business search, review and recommendation services. It competes primarily with Google ( GOOG) Places, Yahoo! Local, Angie's List ( ANGI), CityLocal and Gumtree.

Yelp was also one of the third-party services integrated with Apple's ( AAPL) Siri voice-activated AI assistant, which was launched with the iPhone 4S last year. However, it has been integrated even further in the latest iOS 5.1 update, which was launched last week.

Check out our complete analysis of Yelp .

Now, whenever users search for recommendations on local businesses using Siri, they will return results powered by Yelp. It will also direct all requests for reviews and ratings directly to Yelp's mobile site.

Given the millions of iPhone 4S units sold to date, this could become a major traffic driver for Yelp, and also increase visitor engagement levels. Since Yelp's entire business depends on the number of users actively using it, this is a very positive development. More users mean more reviews and more local businesses advertising with Yelp to attract more customers, which ultimately means more advertising revenue for Yelp.

Additionally, since Siri is expected to be integrated with the iPad as well as Mac OS X eventually, this could lead to even more traffic to Yelp in the coming years. Since local and display advertising account for nearly 65% of Yelp's total value, its revenue growth is definitely going to be helped by any increase in visitors.

We currently have a $10 Trefis price estimate for Yelp , which stands nearly 50% below its market price.

Click here to find out how a company's products impact its stock price at Trefis

Like our charts? Embed them in your own posts using the Trefis Wordpress Plugin.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.