Yahoo! announced on its blog (much to no one's surprise, it's a Tumblr blog!) that it's now bringing Yelp's reviews to Yahoo! Search. "Now when you use Yahoo Search to look up a local business in the U.S. on your smartphone, tablet, or PC, you'll see user reviews, business information, and star ratings from Yelp," the company said in the blog post. "We've also added a new photo viewing experience to show high-quality photos from Yelp, other partners, and the businesses themselves."
Shares of Yahoo! were lower in mid-Wednesday trading, off 0.52% to $37.37, while Yelp shares were gaining 3.1% to $92.79.
What Yahoo! is doing by incorporating Yelp into its local search is not only making Yahoo!'s core business (advertising and search) more relevant, it's beginning to build what Google (GOOG) has, with its Knowledge Graph. The Knowledge Graph, essentially the right part of the page, pulls in information from Wikipedia, Google Image Search, Google + posts, and anything else associated with that particular topic, whether it be items to buy, or relevant other searches.
In the fourth quarter of 2013, Yahoo! noted search was the standout performer, as revenue excluding traffic acquisition costs, or TAC, rose 8% to $461 million. Paid clicks, excluding Korea, rose 17% year over year, but the price-per-click fell 3% from the fourth quarter of 2012. Beefing up search can only help Yahoo! in its fight against Google, despite Google owning nearly 70% of the search market in the United States.