The New York Times just published an article about disputes on the review website Yelp arising from negative reviews posted about businesses. In a conflict of interests typical of review websites, Yelp’s users want to post and read uncensored reviews, while businesses complain that unfair reviews are damaging their reputations.
So far, Yelp have refused to remove negative reviews, insisting that they are not in a position to arbitrate the fairness or accuracy of review content. However, almost all of Yelp’s revenue is based on advertising by businesses, and Yelp’s board of directors are showing concern about alienating their advertisers.
As they navigate these tricky waters, Yelp should keep in mind that their advertising revenue also ultimately depends on the site’s users. If reviewers feel that they’re being censored, they’ll be less likely to contribute. If the reviews on the site are no longer seen as objective, fewer people will use the site. And a site without visitors is neither attractive nor beneficial to advertisers.
In our interview with Toprural.com, a European website that publishes reviews of rural travel accommodations, the founder/CEO François Derbaix told us that “The client isn’t king” on Toprural. He explains: “Our longterm success depends on the users, not on the advertisers. We publish traveler opinions on the accommodation pages, and we do not censor the opinions no matter how much the advertiser is paying us. Just as with television, the main point is to have the audience, and the satisfaction of the owner-advertisers ultimately depends as well on the satisfaction of our traveler-users.”
