Yelp spent $300 million on Hatch to automate its messaging platform, where 70% of leads come from. The move signals Yelp is serious about competing with AI search and helping home-service businesses track and nurture leads better. The speaker says it could deliver a ten-fold return on investment.
Did you guys see that Yelp bought hatch for $300 million? Here's what I think that that means. Yelp knows that search is shifting to AI search. And Yelp knows that if you're going to spend money on Yelp and not think it's a scam, they need to fix their messaging platform because 70% of the leads are in messages and we know that. We reach out to these people and they don't get back to us. So Yelp knows that they need to set up automations for their messaging platform and they could go ahead and build this out themselves or acquire a company that's already built out the integration. What this means for home service businesses is that Yelp is going to get a lot better at tracking return on ad and a lot better at nurturing your leads inside of messaging platforms. Which means that I believe that Yelp is not a scam, is actually a good marketing channel that produces 10x return for our clients.
