Thursday, 9 March 2017

Lessons to be learned from the inexorable slide in review sites' share prices


Let us look at the numbers - for two of the biggest quoted review sites:

Yelp...


  A fall of over 60% in three years (in the same period the index has risen over 20%)


and TripAdvisor...




 a similar tale of woe for shareholders - and a powerful message for businesses looking for maximum visibility for their reviews

The unavoidable conclusion?

The fundamentals of both these stocks are under attack. But from who/what/where? From Google, that's where.

Look at what happens when you search for any business today:

A plumber...



A hotel...




An estate agent...


Regular readers will recognise a HelpHound client here; looking great in the Google three-pack and leading the natural (also known as organic) listings with their HelpHound review score and link for all to see - and follow to their website where more reviews are shown


See?

Or rather - 'not see'! These searches are no longer returning the independent review sites - whether Yelp or RatedPeople for plumbers, TripAdvisor or Trivago for Hotels or Feefo or Trustpilot for estate agents. The only way these sites are now showing is in paid-for advertising (CPC) and a greyed-out link in the business's knowledge panel. 

That is why the share prices of the quoted independent review sites are in free-fall (and if we were investors in the independent sites that are still unquoted we would be feeling distinctly uncomfortable). 

Advice for our clients

This is where professional review management pays off. We have no bias - so we just make sure your reviews are where they are going to be seen - and today (and for the foreseeable future) that is:
  • on Google
  • on your own website
And if something happens in the marketplace that dictates otherwise? We will be here to advise you.



 

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