The enemy of your enemy is your friend so the saying goes. Less than a week after Google (NASDAQ:GOOG) announced the launch of Google+ Local integrated with listing information from Zagat, Microsoft (NASDAQ:MSFT) has announced a new partnership with Yelp (NYSE:YELP), wherein Bing’s Local Search page will add search results powered by Yelp’s local business search capabilities. 
Considering that Google+ Local with Zagat posed a threat to both Bing and Yelp, this may be one of the wisest moves they could have possibly made. It will benefit Microsoft by improving Bing’s search quality by providing more relevant search results and drive more traffic to Yelp.
The new Bing Local Search “powered by Yelp” will display photos, business details, reviews from Yelp whenever a user searches for a local business or restaurant. Microsoft’s Bing competes primarily with Google in Search, while Yelp competes with Google Places, Yahoo Local and other online classified services.
Locally targeted advertising is a huge market, which is why Yelp, Google, Microsoft and everyone else is trying so hard to have a share of it.
We currently have a $10 Trefis price estimate for Yelp. Local advertising accounts for most of its value. On the other hand, Microsoft’s online services account for less than 1% of its overall $40 value estimate.Notes: