Yelp could report its first year-over-year (YoY) traffic decline during its second quarter earnings call, according to B. Riley analysts cited by Business Insider.
The site, along with other location recommendation services, has seen its incoming traffic decline recently, according to the report.
Yelp’s traffic from mobile declined by 3% YoY in June 2015, according to data cited by the B. Riley report. Desktop traffic also appears to have declined.
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Yelp and other location recommendation services face two major threats:
- Google wields a considerable amount of power over incoming search traffic. Recent changes to Google’s search algorithm appear to have pushed down results from third-party location recommendation services in favour of results from Google-owned services, according to a recent Yelp-commissioned study cited in the report.
- Tech companies are building out their own location recommendation services. These companies have massive user bases, and incorporating location recommendation functionality extends the usefulness of their services. Google Maps, for instance, uses ratings from Google-owned Zagat for location searches as well as its own location reviews. And Amazon recently launched Home Service, which lets customers find and book home contractors, Pacific Crest Securities noted in a report cited by Business Insider.
Other services that have seen their traffic decline include Angie’s List, Yellow Pages, and City Search, according to BrightLocal data cited by Search Engine Land and B. Riley.
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