Amazon has rolled out a new program that lets local service businesses promote themselves on its high-intent pages. Known as Sponsored Services, the program partners with Yelp to integrate its listings, with the goal of promoting local services that are contextually relevant for Amazon products.
For example, if an Amazon shopper buys a new TV stand, they can get connected to a handyman or furniture assembly pro on Yelp with just a few clicks. The collaboration also natively integrates Yelp functionality such as its popular Request a Quote feature, so users can benefit from competitive bidding.
Altogether, the deal offers advantages on a few levels, says Amazon. It’s a better user experience in that complementary and additive services are offered alongside products. And for local service pros, the contextual relevance and timing of these placements could drive favorable conversion rates.
“Yelp’s mission has always been to connect consumers with great local businesses, and this partnership with Amazon unlocks an entirely new source of leads for the service pros on our platform,” Yelp Head of Services Operations, Katy Lightsey, told Localogy Insider.
Wider Net
From a UX perspective, these Yelp listings are shown after Amazon shoppers purchase something. This is meant to provide an additional level of utility at the right moment, given that a purchase has been confirmed. Users can find these listings on order confirmation pages and package tracking pages.
Besides providing a utility to its shoppers, Amazon benefits from working with Yelp in that it’s a trusted filter for local services. In other words, Yelp’s established ratings system means that Amazon can feel confident in the local services pros that it connects its users to – a reputationally-sound move.
Amazon also gets a strong sales channel into local markets without having to field sales reps (more on that in a bit). This lets it expand its addressable market to the local long tail – a boost for its ongoing revenue diversification play into advertising (though revenue share terms of this deal weren’t disclosed).
Meanwhile, Yelp benefits from greater distribution for its advertisers. As we discussed at L26 in April, Yelp’s third-party integrations (including the use of its API) are a sizable business driver in casting a wider net for user touchpoints. This deal could achieve similar ends in expanding Yelp’s surface area.
“When someone buys a faucet, a TV, or a set of tires, they’re often trying to complete a bigger project, and that moment of purchase is a powerful signal of intent, said Lightsey. “Sponsored Services turns that signal into action by connecting shoppers directly with trusted local professionals on Yelp.”
Tiger Pistol Adds Amazon Sponsored Display Ads to its Platform
Smart Play
If all of this sounds familiar, it’s because Amazon already stepped into the wide world of local services advertising. As we examined back in 2024, Amazon partnered with local advertising channels such as Tiger Pistol, which gave it access to local services businesses for similar contextual ad placements.
This week’s move seems to be an extension of that effort, though it differs slightly in the ad placement. Previous contextual ad placement mostly resided within Amazon search results – a logical place to capture commercial intent. Sponsored Services ads show up after an item is purchased, as noted.
Like the Tiger Pistol collaboration, Amazon can benefit from Yelp in that it’s an immediate base of local businesses. That brings us back to the part about the challenges of going direct. Amazon would otherwise have to go through an onerous feet-on-the-street sales process to gain the same reach.
Not only is local advertising a fragmented market to tackle – and Amazon would have to mostly start from scratch – but it would likely be disadvantaged in any direct-sales efforts. We say that because many local businesses see Amazon as the enemy, given its aggressive price competition for physical goods.
Moving into local services advertising may not be as controversial. Amazon isn’t selling competing products but rather offering a high-intent environment for local services to promote themselves. Either way, working with a trusted and established local channel like Yelp or Tiger Pistol is the smart play.
“For service businesses, that means more jobs and new customers,” said Lightsey.
