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January 25, 2010

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I'm going to play devil's advocate here...

OK, let's assume that the restaurants which advertise on Yelp are in fact seeing higher reviews. This can easily be explained by the fact that perhaps they do actually produce a better product (food).

Look at it this way: A restaurant builds a good base by (gasp) having a great dining experience. This, coupled with good business sense, allows them to create more profits and spend them on ad buys. So, when you are on Yelp and you're looking for a restaurant, you'll see ads for those that are already successful, not necessarily becoming successful because of their ad spends.

Just looking at it a different way.

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